What Should a PRINCE2 Project Manager Do When a Work Package Exceeds Tolerances?
A project is being executed in a stage. The Team Manager reports that a Work Package is likely to exceed its tolerances. What should the Project Manager do first?
Quick Answer
The correct first step is to assess the situation and consider corrective actions within the stage tolerance. This is because, under PRINCE2, the Project Manager holds delegated authority to manage the stage within the agreed tolerances, and the Team Manager’s report of a work package tolerance deviation does not automatically trigger escalation. Instead, the Project Manager must first evaluate whether the deviation can be resolved internally by adjusting the work package or reallocating resources, preserving the stage tolerance. Only if the forecast exceeds the stage tolerance should an Exception Report be raised to the Project Board. On the PRINCE2 Foundation exam, this question tests your understanding of the escalation hierarchy and the principle of management by exception. A common trap is to jump straight to escalation, but the correct response is always to check if the issue fits within existing tolerances first. Memory tip: think “Tolerance Triangle” — Work Package tolerance sits inside Stage tolerance, so always check the bigger bucket before raising the alarm.
⚠ Common exam trap
PeopleCert often tests the misconception that any forecast deviation requires immediate escalation to the Project Board, when in fact the Project Manager must first assess whether the issue can be resolved within the existing stage tolerance.
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
✓
Assess the situation and consider corrective actions within the stage tolerance
According to PRINCE2, when a Team Manager reports that a Work Package is likely to exceed its tolerances, the Project Manager must first assess the situation and consider corrective actions within the stage tolerance. This is because the Project Manager has delegated authority to manage the stage within the agreed stage tolerances, and only if the forecast exceeds those tolerances should an Exception Report be raised to the Project Board. The correct first step is always to evaluate whether the issue can be resolved within the existing tolerance limits before escalating.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Assess the situation and consider corrective actions within the stage tolerance
Why this is correct
The Project Manager first tries to resolve within their delegated authority.
- ✗
Immediately raise an Exception Report to the Project Board
Why it's wrong here
Escalation should occur only after the Project Manager has assessed and cannot resolve within stage tolerance.
- ✗
Inform the Project Board at the next Highlight Report
Why it's wrong here
Tolerance breaches require prompt escalation, not waiting for the next report.
- ✗
Request the Team Manager to continue and monitor the situation
Why it's wrong here
The Project Manager must take action, not just monitor.
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Same concept, more angles
1 more way this is tested on PRINCE2F
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. The Project Manager notes that a Work Package is at risk of being delivered late. What should the Project Manager do?
medium- ✓ A.Agree corrective actions with the Team Manager within the Work Package tolerances
- B.Update the Project Plan immediately
- C.Immediately escalate to the Project Board
- D.Cancel the Work Package and reassign it to another team
Why A: In PRINCE2, when a Work Package is at risk of being delivered late but remains within its agreed tolerances, the Project Manager should agree corrective actions with the Team Manager. This is because the Team Manager is responsible for day-to-day management of the Work Package, and the Project Manager's role is to support and guide without escalating unless tolerances are forecast to be exceeded. Corrective actions within tolerance keep the project on track without unnecessary escalation.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PRINCE2F practice question is part of Courseiva's free PeopleCert 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 PRINCE2F exam.