The correct answer is to inform the Project Board that the project cannot meet the deadline and request guidance. This is because the delay and cost exceed the agreed tolerances: the alternative material still leaves a one-month overrun past the fixed regulatory deadline, and the 15% cost increase surpasses the 10% budget contingency. In PRINCE2, when a plan cannot be achieved within delegated tolerances—whether for time, cost, scope, or quality—the Project Manager must escalate the issue to the Project Board, as only the board can authorize changes beyond those limits. On the PRINCE2 Foundation exam, this scenario tests your understanding of the escalation principle during the Initiation Stage, where the Project Plan is being finalized. A common trap is trying to solve the problem yourself by accepting the alternative material, but the core rule is that exceeding tolerances requires escalation, not unilateral action. Remember the mnemonic: "Tolerances topped? Escalate and stop."
PRINCE2F Project Initiation and Stages Practice Question
This PRINCE2F practice question tests your understanding of project initiation and stages. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
You are managing a construction project. During the Initiation Stage, you are developing the Project Plan. The senior supplier informs you that the required steel will be delayed by 3 months due to a global shortage. This delay will push the project completion beyond the board's deadline. The project has a fixed completion date due to regulatory requirements. The senior user is unwilling to accept a delay. You have identified that using an alternative material could save 2 months but would increase costs by 15%. The project budget has a 10% contingency. What is the most appropriate course of action?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Inform the board that the project cannot meet the deadline and request guidance
Option D is correct because the project has a fixed completion date due to regulatory requirements, and the identified solution (alternative material) still results in a 1-month delay (3-month delay minus 2-month saving) and exceeds the 10% contingency (15% cost increase vs. 10% contingency). According to PRINCE2, when a stage plan or project plan cannot be achieved within agreed tolerances, the Project Manager must escalate the issue to the Project Board for a decision. The board is the only authority that can authorize a change to the project's scope, schedule, or budget beyond the delegated tolerances.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Reduce the project scope to meet the deadline
Why it's wrong here
Scope change needs board approval and may not be feasible.
✗
Switch to the alternative material and use the contingency to cover the cost increase
Why it's wrong here
The cost increase is 15%, but contingency is only 10%, so insufficient. Also, the delay may still be unacceptable.
✗
Accept the delay and update the Project Plan accordingly
Why it's wrong here
The board's deadline is fixed; the PM cannot unilaterally accept.
✓
Inform the board that the project cannot meet the deadline and request guidance
Why this is correct
The board must decide on options, as the issue impacts the project's viability.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think the contingency is available to cover any cost overrun, but PRINCE2 requires that contingency use must be within agreed tolerances and that exceeding tolerances triggers escalation, not autonomous action.
Detailed technical explanation
How to think about this question
In PRINCE2, the Project Plan is created during the Initiation Stage and defines the project's scope, schedule, cost, and tolerances. Tolerances are the permissible deviations from the plan; if they are forecast to be exceeded, an exception report must be raised to the Project Board. The board then decides whether to approve an exception plan, which may involve changes to scope, schedule, or budget. This ensures that the Project Manager does not act outside their delegated authority, maintaining control and accountability.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Project Initiation and Stages — This question tests Project Initiation and Stages — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Inform the board that the project cannot meet the deadline and request guidance — Option D is correct because the project has a fixed completion date due to regulatory requirements, and the identified solution (alternative material) still results in a 1-month delay (3-month delay minus 2-month saving) and exceeds the 10% contingency (15% cost increase vs. 10% contingency). According to PRINCE2, when a stage plan or project plan cannot be achieved within agreed tolerances, the Project Manager must escalate the issue to the Project Board for a decision. The board is the only authority that can authorize a change to the project's scope, schedule, or budget beyond the delegated tolerances.
What should I do if I get this PRINCE2F question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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. A project is in the Initiation Stage. The senior user requests a major change to the scope. What should the project manager do?
hard
A.Reject the change as it is too late
B.Accept the change and adjust the Business Case
C.Update the Project Plan and continue
✓ D.Create an Issue Report and escalate to the Project Board
Why D: In PRINCE2, during the Initiation Stage, the Project Manager does not have authority to approve scope changes. Any issue that could impact the Business Case or project viability must be formally documented as an Issue Report and escalated to the Project Board for a decision. This ensures governance is maintained and the Business Case remains viable.
Last reviewed: Jun 11, 2026
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