Construction of a building has stopped due to a supplier's failure to deliver concrete. The project schedule is behind by three months. What should the project manager do to overcome this problem and

Question

Exhibit

Options

• AFollow the risk response plan and allocate resources, if needed, to overcome the issue.
• BAccept any penalties that might occur and continue working as initially planned.
• CConsult the legal department and subject matter experts (SMEs) regarding what to do to avoid failure.
• DExtend the time of product delivery and use management reserve to cover any losses.

• A
  72% (39)
• B
  15% (8)
• C
  7% (4)
• D
  6% (3)

Explanation

When a risk event (supplier failure) has materialized, the correct first response is to execute the pre-established risk response plan. The risk response plan should already include contingency actions for supplier-related risks, such as finding alternative suppliers or reallocating resources. Following this plan (A) is proactive and structured. Accepting penalties (B) is passive and does not recover the schedule. Consulting legal (C) may be a secondary action but is not how the schedule gets back on track. Extending delivery (D) and using management reserve addresses cost but does not solve the underlying schedule problem.

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