PMP Process — Managing Technical Aspects Practice Question
You are managing a large-scale construction project. A critical vendor has informed you that they will be delayed by two months due to a raw material shortage. This risk was identified and recorded in the risk register with a contingency plan to use an alternative vendor. However, the alternative vendor's materials are more expensive and will increase project costs by 10%. Which THREE actions should you take?
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
✓
Request a change request to update the cost baseline and budget.
First, implement the contingency plan as it was pre-approved. Then, assess the cost impact to update the cost baseline through change control. Finally, communicate the situation to stakeholders. These steps align with PMI's risk and communication management.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Request a change request to update the cost baseline and budget.
Why this is correct
When a risk event materializes and its planned response, such as engaging an alternative vendor, results in a cost increase beyond the approved budget, a formal change request is mandatory. This request initiates the Integrated Change Control process to assess the impact on the cost baseline and overall project budget. Approval is necessary to formally adjust these baselines, ensuring all financial impacts are documented and authorized. This maintains project control and transparency.
- ✓
Notify key stakeholders about the situation and the plan to proceed.
Why this is correct
Proactive communication with key stakeholders is crucial when a significant risk materializes, especially one impacting cost or schedule. Informing them about the vendor delay, the implemented contingency plan, and any resulting cost or schedule implications manages expectations and maintains transparency. This aligns with the Communication Management Plan and ensures stakeholders remain aware of project status and potential impacts.
- ✗
Instruct the team to work overtime to recover the schedule.
Why it's wrong here
While overtime might seem like a quick fix to recover schedule, it does not address the root cause of the delay, which is the vendor's inability to deliver. Furthermore, relying on overtime can lead to increased project costs, potential burnout for the project team, and diminished quality of work. This approach is often unsustainable and less effective than addressing the core issue through a planned risk response.
- ✓
Implement the contingency plan by engaging the alternative vendor.
Why this is correct
The purpose of a well-developed risk management plan is to have pre-defined responses for identified risks. Upon the materialization of a vendor delay, implementing the established contingency plan, such as engaging a pre-qualified alternative vendor, is the immediate and appropriate action. This proactive step minimizes the negative impact on the project schedule and objectives as per the risk response strategy.
- ✗
Reject the vendor's notice and demand they meet the original deadline.
Why it's wrong here
Simply rejecting the vendor's notice and demanding adherence to the original deadline is an unrealistic and often counterproductive response. If the vendor has formally communicated an inability to meet the deadline, demanding compliance without a viable path forward will likely escalate conflict and damage the professional relationship. This approach fails to acknowledge the reality of the situation and does not provide a practical solution to the project's problem.
Go deeper
Related to this question
Learn chapter
Introduction to the PMP Exam and Project Management Basics
Key term
Project Management Plan
A formal, approved document that defines how a project is executed, monitored, controlled, and closed, serving as the single source of truth for the project team.
Key term
Communication Management
Communication management is the process of planning, executing, and controlling the flow of information among project stakeholders to ensure clear, timely, and effective exchanges.
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JA
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.