Question

You are leading a construction project that is 65% complete when a key subcontractor declares bankruptcy. This subcontractor was responsible for all electrical work, representing 20% of remaining project activities. Three alternative subcontractors have been identified: Vendor A can start immediately but costs 35% more; Vendor B matches the original cost but needs 45 days mobilization; Vendor C costs 15% more and needs 20 days mobilization. The electrical work is on the critical path, and contract penalties of $50,000 per week apply after the baseline completion date, which is 90 days away. Your analysis shows current electrical work would take 70 days. What is the BEST course of action?

Accepted Answer

Perform a quantitative analysis comparing total cost impact (vendor costs plus potential penalties) of all three options before making a selection

Answer

Select Vendor C, absorb the 15% cost increase, and crash other critical path activities during the 20-day mobilization period to recover schedule

Answer

Select Vendor A to eliminate mobilization delay, then submit a change request to the customer for the 35% cost increase citing force majeure

Answer

Select Vendor B to maintain cost baseline, use the 45-day mobilization period to fast-track non-electrical critical path work, and negotiate contract penalty relief

PMP Practice Question: Process — Predictive, Hard

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