What does performance milestone not typically indicate in a project?

Performance milestones in project management serve as key indicators of progress and achievements throughout the project lifecycle. They typically mark significant achievements related to project goals, demonstrating whether the project is on track concerning its objectives. They also relate to progress in the timeline, helping to assess if the project is adhering to its planned schedule. Additionally, performance milestones can represent decision points, where project stakeholders review progress and make choices about the next steps based on the current state of the project.

However, performance milestones do not typically indicate budget overruns. While budget management is crucial in project management, overruns generally arise from various factors such as changes in scope, resource allocations, or unforeseen expenses, rather than being directly linked to specific milestones. Consequently, performance milestones focus more on delivering functional and temporal achievements rather than directly signaling financial issues within the project.