PMI-RMP · Question #615
During the construction of a housing development, a project team realizes they exceeded their materials budget during the first of three execution stages. The risk manager observed that the team did n
The correct answer is C. Properly documented the triggers and actions for the risk. To avoid overspending due to the unanticipated increase in material costs, the project team should have properly documented the triggers and actions for the risk. By identifying and documenting triggers--such as market conditions that could lead to price increases--the team could
Question
During the construction of a housing development, a project team realizes they exceeded their materials budget during the first of three execution stages. The risk manager observed that the team did not notice that the cost of the materials increased due to continuous inflation in the steel market. What could have been done during project planning to avoid overspending?
Options
- AMet weekly with the finance team to monitor the cost
- BCommunicated with the stakeholders that the project costs might increase
- CProperly documented the triggers and actions for the risk
- DEngaged with the sponsor to buy the steel in advance of the project
How the community answered
(40 responses)- A8% (3)
- B5% (2)
- C73% (29)
- D15% (6)
Explanation
To avoid overspending due to the unanticipated increase in material costs, the project team should have properly documented the triggers and actions for the risk. By identifying and documenting triggers--such as market conditions that could lead to price increases--the team could have monitored these triggers more closely and taken preemptive action, such as locking in prices or adjusting the budget accordingly. PMI recommends that triggers for risks be identified and documented during the planning phase so that appropriate monitoring and responses can be implemented as part of the risk management plan.
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