You are managing a construction project using a predictive approach. During the execution phase, a key supplier notifies you that they cannot deliver critical materials on the originally agreed date due to manufacturing delays. This delay will impact activities on the critical path. The supplier offers to expedite shipping at an additional cost of $15,000, which would maintain the original schedule. Your project has a management reserve of $50,000 and a contingency reserve of $30,000. What should you do first?

Question

Accepted Answer

The correct answer is B. The correct answer is to analyze impacts and present options to the sponsor because management reserve requires sponsor approval as it addresses unknown risks outside the project manager's authority. While option A might seem reasonable, contingency reserve is for known risks that were identified during planning, not supplier delays that weren't anticipated. Management reserve (option C) cannot be used without sponsor authorization. Option D may not be feasible since the issue affects the critical path and alternative compression might not be possible or cost-effective without first analyzing the situation thoroughly.

PMP Practice Question: Process — Predictive, Medium

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