PMP Guide — Empowering Project Managers
Business EnvironmentPredictiveHardECO: Business Environment Task 4

PMP Practice Question: Business Environment — Predictive, Hard

Your organization is executing a predictive software development project for a government client under a firm-fixed-price contract. During the requirements validation phase, you discover that two key requirements conflict with recently updated data privacy laws that were enacted after contract signing but before development began. Legal compliance requires modifying these requirements, which will reduce some functionality the client specifically requested. The contract does not include a clause addressing regulatory changes. Your legal team confirms that non-compliance could expose both organizations to significant penalties. The client's program manager insists you must deliver all original requirements as specified in the contract and suggests finding 'creative technical solutions' to satisfy both the requirements and the laws. Your organization's compliance officer has flagged this as a high-risk issue requiring resolution. What is the most appropriate response?

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