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Question 300

ABC Company has set an overall budget for the Health and Safety Training Project. During stage 3, there was a delay in delivering the 'e-learning course' by the external consultancy and the cost and time tolerance for the work package was exceeded. This led to additional costs in running the 'planned pilot courses'.

Therefore, the project cost will exceed the agreed overall project budget, so the project board requested additional funding from ABC Company's board of directors.

Is this an appropriate action, and why?

    Correct Answer: A

    In project management, tolerances are predefined deviation limits beyond which exceptions need to be reported to higher authority. Since the overall project budget is expected to be exceeded, it is necessary for the project board to request additional funding from ABC Company’s board of directors. This is in line with ensuring that financial tolerances set by corporate management are maintained and addressing any significant impacts on project budget constraints.

Discussion
ravi_awsOption: D

No, because the project board should request an exception plan and reset the tolerances for the remainder of the project

ravi_aws

A Project board can't set project level tolerances.

MortenCOption: A

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