PMP Process — Managing Technical Aspects Practice Question
You are the PM for a highway construction project. A key vendor informs you that they cannot deliver the steel beams on time due to a factory fire. This risk was identified in the risk register with a mitigation plan to have a backup supplier. However, the backup supplier's price is 20% higher. Which TWO 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
✓
Inform the sponsor about the cost increase and request a budget adjustment
When the identified risk materializes, the contingency plan (backup supplier) should be executed, but the associated cost increase must be communicated to the sponsor and a budget adjustment should be requested. Option D is correct because the previously planned contingency plan is to engage the backup supplier, which is the appropriate immediate action. Option B is incorrect because the vendor's failure is not a new risk—it is the occurrence of an already identified risk. Option C is incorrect because sourcing alternative materials locally would bypass the established contingency plan and could introduce new risks without proper evaluation. Option E is incorrect because changing the construction method would require a formal change request and is not the immediate response to the risk occurrence.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Inform the sponsor about the cost increase and request a budget adjustment
Why this is correct
When a risk event, such as a vendor's failure, leads to a significant cost increase, it constitutes a variance from the cost baseline. The project sponsor, as the primary funding authority and a key stakeholder, must be promptly informed of such financial impacts. Requesting a formal budget adjustment is the correct procedural step to address this variance, ensuring the project remains adequately funded and maintaining transparency regarding financial performance.
- ✗
Add the vendor's failure to the risk register as a new risk
Why it's wrong here
Adding a vendor's failure to the risk register as a new risk is incorrect because the event has already occurred; it is no longer an uncertain future event. Risks are potential occurrences, whereas a materialized vendor failure is an actual issue that should be documented in an issue log. Once a risk materializes, it transitions from being managed proactively in the risk register to being managed reactively as an issue, with its impact addressed and lessons learned captured.
- ✗
Authorize the team to source alternative materials locally
Why it's wrong here
Unilaterally authorizing the team to source alternative materials locally is a significant deviation that bypasses formal change control processes. Changing materials can impact the project's scope, quality requirements, design specifications, schedule, and overall cost baseline. Such a decision requires a formal change request, thorough impact analysis by relevant experts, and approval from the Change Control Board (CCB) or appropriate stakeholders to ensure alignment with project objectives and standards.
- ✓
Execute the contingency plan and engage the backup supplier
Why this is correct
Executing the contingency plan and engaging the backup supplier is the appropriate immediate response when a pre-identified risk materializes. A contingency plan is a predefined set of actions developed during risk planning to be implemented if a specific risk event occurs. Engaging a backup supplier directly addresses the vendor failure, mitigating the impact on project schedule and scope by ensuring continuity of supply as per the established risk response strategy.
- ✗
Update the project management plan to use a different construction method
Why it's wrong here
Updating the project management plan to use a different construction method represents a fundamental change to the project's execution strategy and scope. This significant modification would necessitate a formal change request, comprehensive impact analysis across all project baselines (scope, schedule, cost, quality), and approval through the integrated change control process, typically by the Change Control Board (CCB). Making such a change without proper analysis and approval can introduce new risks and jeopardize project success.
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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.