PMP Practice Question: Business Environment: strategy and project benefits
A project manager is managing a construction project that is currently 15% over budget at the midpoint. The sponsor asks the PM to reduce quality testing to save costs. What should the PM do first?
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
✓
Explain the risks of reducing quality and recommend submitting a change request if cost reduction is necessary
Reducing quality without change control and impact analysis is risky and violates PMI principles. Option B is reactive, option C bypasses analysis, option D ignores the issue.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Explain the risks of reducing quality and recommend submitting a change request if cost reduction is necessary
Why this is correct
The project manager's primary responsibility includes protecting project objectives and baselines. By explaining the risks associated with reducing quality, such as increased defects, rework, or customer dissatisfaction, the PM educates the sponsor on potential negative impacts. Recommending a formal change request ensures that any proposed cost reduction, especially one affecting quality, undergoes proper impact analysis, stakeholder review, and formal approval through the Perform Integrated Change Control process, thereby maintaining project governance and transparency.
- ✗
Ignore the sponsor's request and continue with the current plan
Why it's wrong here
Ignoring a sponsor's request is a critical failure in stakeholder management and communication. This approach demonstrates a lack of responsiveness and can severely damage the project manager's relationship with a key stakeholder, potentially leading to disengagement, lack of support, or even project termination. Effective project management requires proactive engagement, understanding stakeholder concerns, and collaboratively seeking solutions, rather than dismissing legitimate inquiries.
- ✗
Agree with the sponsor and reduce testing immediately
Why it's wrong here
Immediately agreeing to reduce testing without proper analysis or formal approval is a significant breach of project governance and quality management principles. Such an action bypasses the Perform Integrated Change Control process, risking the introduction of defects, compromising product quality, and potentially incurring higher costs later due to rework or warranty claims. All changes impacting baselines, especially quality, must be thoroughly evaluated for their consequences and formally approved.
- ✗
Review the budget and identify other areas to cut costs without affecting quality
Why it's wrong here
While reviewing the budget for alternative cost-cutting measures is a valid step, doing so without a formal change request or prior stakeholder consultation is incomplete and potentially problematic. Any significant alteration to the project budget or scope, even if intended to preserve quality, must be documented as a change request. This ensures that the proposed adjustments are formally reviewed, approved, and communicated to all relevant stakeholders, maintaining project transparency and control over baselines.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PMP practice question is part of Courseiva's free PMI 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 PMP exam.