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MB-920 Practice Question: The project manager for a large engineering firm…
You are the project manager for a large engineering firm that uses Dynamics 365 Project Operations. Your organization has recently deployed Project Operations and is using it to manage multiple concurrent projects. You have been assigned to a new project named 'Bridge Construction' which is a fixed-price contract with a total value of $2,000,000. The project is scheduled to run for 12 months. During the first month, the team encounters an unexpected geological issue that requires additional surveying work. This additional work will require 200 hours of a senior geologist's time and 100 hours of a surveyor's time. The project contract has not accounted for this scope change. You need to ensure that the project stays profitable and that the client is billed appropriately. The client is open to change orders but expects formal documentation. What should you do?
⚠ Common exam trap
Candidates often think adding tasks directly to the WBS is sufficient, but without a change order, the contract's billing rules and budget are not updated, causing the additional costs to be unbillable and potentially reducing project profitability.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Create a change order in the project contract to reflect the additional scope, then update the WBS and budget.
In Dynamics 365 Project Operations, when a fixed-price contract encounters unplanned scope, the correct process is to create a change order on the project contract to formally document the scope change, update the Work Breakdown Structure (WBS) with the new tasks, and adjust the budget accordingly. This ensures the client is billed correctly through the contract's billing rules and maintains project profitability by tracking the additional costs against the revised budget.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Create a change order in the project contract to reflect the additional scope, then update the WBS and budget.
Why this is correct
Formal change order process ensures proper billing and profitability tracking.
- ✗
Create a separate internal project to track the additional costs and invoice the client manually.
Why it's wrong here
Separate project complicates tracking and billing.
- ✗
Proceed with the work and adjust the final invoice at project completion.
Why it's wrong here
Risks cost overrun and client rejection of unapproved work.
- ✗
Add the additional labor tasks to the existing work breakdown structure (WBS) and increase the project budget accordingly.
Why it's wrong here
Does not create a formal change order for billing.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.