Question related to PMI ethics

Discuss PMP doubts, tips and lesson learned. iZenBridge makes PMP® Certification easy
nitun1986
Posts: 4
Joined: Fri Jul 19, 2019 9:50 am

Question related to PMI ethics

Mon Nov 25, 2019 5:57 am

*Question 4* :-
You have just been hired by a waste management company to start a solid waste management program in an under-developed country. The project will be on a build-operate-transfer basis and have a duration of 2 years. At close of the project, the program will be run by local authorities. The project has been sponsored by the World Bank and has been awarded to a large international consortium. Your company has been subcontracted to do this project along with 2 more contractor companies. After the project scope was finalized, you developed a cost estimate of USD $5.5 million. The sponsor reviews your detailed costing sheets, and is concerned about the total cost figure. He tells you that the maximum allowable budget he can allocate for this project is USD $5 million. What should you do?
A. Ask for a reduction in scope.
B. Evaluate ways that can result in cost savings and re-estimate the project.
C. Advise the sponsor that the project cannot be completed within the available budget.
D. Begin the project with the intention of requesting a budget increase at a later point in time.

*Answer B* :-
You should evaluate ways that can result in cost savings and re-estimate the project. Requesting a change in budget or scope without fully analyzing the options, or simply moving ahead with plans to request additional funds in the future are violations of the PMI Code of Ethics. This code requires project managers to provide accurate, timely, and truthful project information at all times

My doubt is why c can't be correct assuming the PM did develop a cost estimate earlier.. isn't it expected that we do cost estimate accurately and doesn't need rework .
manishpn
Expert
Expert
Posts: 2903
Joined: Sat Jan 04, 2014 3:55 pm

Re: Question related to PMI ethics

Sat Dec 07, 2019 11:20 am

nitun1986 wrote:*Question 4* :-
You have just been hired by a waste management company to start a solid waste management program in an under-developed country. The project will be on a build-operate-transfer basis and have a duration of 2 years. At close of the project, the program will be run by local authorities. The project has been sponsored by the World Bank and has been awarded to a large international consortium. Your company has been subcontracted to do this project along with 2 more contractor companies. After the project scope was finalized, you developed a cost estimate of USD $5.5 million. The sponsor reviews your detailed costing sheets, and is concerned about the total cost figure. He tells you that the maximum allowable budget he can allocate for this project is USD $5 million. What should you do?
A. Ask for a reduction in scope.
B. Evaluate ways that can result in cost savings and re-estimate the project.
C. Advise the sponsor that the project cannot be completed within the available budget.
D. Begin the project with the intention of requesting a budget increase at a later point in time.

*Answer B* :-
You should evaluate ways that can result in cost savings and re-estimate the project. Requesting a change in budget or scope without fully analyzing the options, or simply moving ahead with plans to request additional funds in the future are violations of the PMI Code of Ethics. This code requires project managers to provide accurate, timely, and truthful project information at all times

My doubt is why c can't be correct assuming the PM did develop a cost estimate earlier.. isn't it expected that we do cost estimate accurately and doesn't need rework .

Good doubt, option C can be a right option if the question situation mentions that as a PM he/she has done evaluation
on options to save cost (without compromising on the scope) for e.g. Buy and not make, etc
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/
nitun1986
Posts: 4
Joined: Fri Jul 19, 2019 9:50 am

Re: Question related to PMI ethics

Mon Dec 09, 2019 3:10 pm

Thank you

Return to “PMP® Open Forum”

Who is online

Users browsing this forum: No registered users and 16 guests