Question

Your construction project is in month 18 of a 30-month schedule. A new environmental regulation has been enacted that requires additional soil remediation procedures for your project site. The regulation applies retroactively to work already completed. Your legal team estimates compliance will add $1.2M in costs and 3 months to the schedule. You have management reserve of $800K and schedule reserve of 6 weeks. The contract includes a force majeure clause and regulatory change provisions. Your CFO wants to minimize financial impact, your customer is concerned about schedule, and your legal counsel advises documenting everything for potential claims. What is your best course of action as the project manager?

Accepted Answer

Submit a change request through integrated change control, recommend using management reserve plus a budget increase, invoke the regulatory change contract provision for schedule extension, and update all baselines

Answer

Invoke the force majeure clause to suspend the project, document the regulatory change as an unforeseeable event, and negotiate a contract modification for additional time and money

Answer

Perform fast-tracking and crashing analysis to recover the 3-month impact, use management reserve for partial cost coverage, and submit a change request only for the remaining budget shortfall

Answer

Document this as a risk that has occurred, implement workarounds to minimize cost impact, use contingency reserves to cover expenses, and update the risk register with lessons learned

PMP Practice Question: Process — Predictive, Hard

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