A firm, fixed-price project is on pace to exceed the maximum defect rate identified in the project charter. The customer has stated the project must be delivered on time. Which of the following is…

The correct answer is A. Reduce the project scope. In a firm fixed-price (FFP) contract, the budget is locked - the contractor absorbs cost overruns. Crashing the schedule (B) and adding new resources (D) both require additional spending the contractor cannot bill to the customer. Requesting additional budget (C) contradicts…

Project life cycle phases

Question

A firm, fixed-price project is on pace to exceed the maximum defect rate identified in the project charter. The customer has stated the project must be delivered on time. Which of the following is the BEST option for the project to complete on time and within parameters?

Options

AReduce the project scope.
BCrash the schedule.
CRequest additional budget from the customer.
DApply new resources to the project.

How the community answered

(49 responses)

A
59% (29)
B
6% (3)
C
22% (11)
D
12% (6)

Explanation

In a firm fixed-price (FFP) contract, the budget is locked - the contractor absorbs cost overruns. Crashing the schedule (B) and adding new resources (D) both require additional spending the contractor cannot bill to the customer. Requesting additional budget (C) contradicts the FFP contract type. The only viable lever is scope: by reducing scope, the team delivers less work within the same time and budget, thereby controlling the defect rate and meeting the on-time requirement.

Topics

#firm fixed-price#scope reduction#quality constraints#triple constraints

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