PMP® Open Forum

Best next action to do when almost all variance reports are at alarming state?
ABC construction company specializes in complex road construction projects. The Government has awarded the company for road construction in difficult terrain. Mark is leading the current project. The contract has stringent conditions around quality and timely completion. Thus, Mark has put a strong governance and introduced a weekly reporting around project health. Few months into project Mark had to move due to family reasons, and Sandra took over as new project manager.
On Friday Sandra received various variance reports from her project team, and she found Cost Variance and Scope Variance reports quite alarming. Cost variance was at 0.7 and Schedule variance was 0.8. She is afraid that the current cost variance can derail the whole project and she wants to bring this to stakeholders attention, at the same time she also feels concerned about the scope variance, what should she do next?

Select the Best.

A. Since Project contract has stringent conditions, she should call for emergency meeting and raise this issue to sponsor by sending all variance reports

B. Since Project contract has stringent conditions, she should call for emergency meeting and share all these reports with stakeholders and ask their view on situation

C. Since Project contract has stringent conditions, she should prepare Project Work Performance Report and share it with all stakeholders and recommend for Steering Group Meeting.

D. Since Project contract has stringent conditions, she should give a call to the previous Project Manager and ask for advice on contractual implications, to understand if project deadline will be missed.

Which option is correct?

Best next action to do when almost all variance reports are at alarming state?
ABC construction company specializes in complex road construction projects. The Government has awarded the company for road construction in difficult terrain. Mark is leading the current project. The contract has stringent conditions around quality and timely completion. Thus, Mark has put a strong governance and introduced a weekly reporting around project health. Few months into project Mark had to move due to family reasons, and Sandra took over as new project manager.
On Friday Sandra received various variance reports from her project team, and she found Cost Variance and Scope Variance reports quite alarming. Cost variance was at 0.7 and Schedule variance was 0.8. She is afraid that the current cost variance can derail the whole project and she wants to bring this to stakeholders attention, at the same time she also feels concerned about the scope variance, what should she do next?
Select the Best.
A. Since Project contract has stringent conditions, she should call for emergency meeting and raise this issue to sponsor by sending all variance reports
B. Since Project contract has stringent conditions, she should call for emergency meeting and share all these reports with stakeholders and ask their view on situation
C. Since Project contract has stringent conditions, she should prepare Project Work Performance Report and share it with all stakeholders and recommend for Steering Group Meeting.
D. Since Project contract has stringent conditions, she should give a call to the previous Project Manager and ask for advice on contractual implications, to understand if project deadline will be missed.
Which option is correct?

The key take away from the question are:
1. Cost Variance is at alarming state
2. Schedule variance is at alarming state
3. There is a concern for the Scope Variance
4. Sandra need to adhere to stringent contractual terms

Here in the question, Sandra is getting various variance reports; and she needs to take an integrated approach to see the actual project situation. For the purpose, she may require using tools:
• To see the relationships between cost, schedule, and scope variances
• For what are the root-causes which are creating variations?
• What could be the alternative approaches?
• How are we moving towards benefits compared to cost?

While doing this analysis She also need to consider stakeholders expectations, contractual terms, and controlling data from various controlling processes especially here from cost, schedule, and scope (Work performance information)

She has to involve stakeholders to analyze these Work Performance Information to make appropriate decisions and to bring the project on track. Also, a consolidated report is produced which makes overall project progress transparent to make stakeholders act on the project issues.

The above analysis showing that question is about “Monitor & Control Project Work” process where Work Performace Report is produced using various Work Performance Information.

Here, Sandra, should prepare Project Work Performance Report and share it with all stakeholders and recommend for Steering Group Meeting. And Hence option C is correct.

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