The most crucial success factor in project management is effective communications to all stakeholders (PMI, 2013). Literary definitions of communication include An exchange of information, act or instance of transmitting information, A verbal or written message, A way of expressing ideas effectively, Exchange of information between people through a standard system as listed by (Kerzner, 2001, edition 7).(PMI, 2013)Research shows that "US$135 million is at risk for every US$1 billion spent on a project and startling 56 percent (US$75 million of that US$135 million) is at risk due to ineffective communications.". (Committee, 1996) Defined Project Communications Management as "Project Communications Management includes the process required to ensure timely and appropriate generation, storage, dissemination, collection, and ultimate disposition of project information.". (Hodgkinson, 2009) Explained that small projects can communicate effectively than larger ones using a formula N (N-1)/2 this determines the number of channels of communication. For example, if the project has five team members 5(5-1)/2 = 5(4)/2 = 20/2 = 10 they need ten communication channels to ensure that everyone are communicating effectively. If the sizeof the project team doubled from 5 to 10 people, the number of communication channels increases 4.5 times from 10 to 45.There are many challenges associated with increased communication channels. For example, If a team member has to communicate with more members of the team to get work done then, that usually not only increase the time to do the job but it also increases the possible risk if a single team member miss communicated in some manner along the way.To ensure smooth flow of instructions frequent, open and accurate channels of communication with all levels of project staff and stakeholders is vital. Without a solid communication plan, it is not possible to make sure that everyone is on the same page. Communication is not only essential to the team itself but between the team and the client as well as within the organization. Setting the right expectations with all the clients is essential which is possible through effective communication. The keys to achieving success during the initial stage of the project are to establish the team dynamics by communicating within the project team and having to know the client's expectations. For successful implementation of project frequent communication channel is essential. Thus, by effective communication misunderstandings and delays that lead to project failures are avoided, and also makes sure that stakeholder and project staff have knowledge of what's going on and what their responsibilities are.