PMP Guide — Empowering Project Managers
Business EnvironmentPredictiveHardECO: Business Environment Task 2.1

PMP Practice Question: Business Environment — Predictive, Hard

You are managing a three-year infrastructure project for a government agency using a predictive approach. Six months into execution, new environmental regulations are enacted that will require significant design changes and additional permits. The regulatory agency indicates that projects already in progress have 18 months to achieve compliance. Your project sponsor suggests accelerating the schedule to complete before the compliance deadline to avoid the additional costs. However, your critical path analysis shows this would require crashing activities at a premium cost of $2.3M, while achieving compliance would cost approximately $1.8M and extend the schedule by 4 months. What should you do first?

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