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Change Order

5 minutes 5 Questions

A Change Order is a formal document that is used to outline the approved changes in a project. It is prepared by the project manager after receiving the necessary approvals from the Change Control Board, stakeholders, or other relevant authorities. The change order typically includes a detailed description of the changes, their impact on the project scope, schedule, cost, and quality, and any additional resources required. It serves as an official record of the approved changes, ensuring that project documentation is updated, and involved team members are aware of the alterations. Change orders help maintain the project's revised baseline and ensure the successful implementation of changes in the project.

Guide: Understanding and Answering Questions on Change Order

The Change Order is an essential element in the project management field as defined by the PMBOK Guide Seventh Edition. It's a formal proposal to alter certain aspects of a project, which may include time, scope, quality, risk, or resources. It's crucial for controlling revisions and adjustments maintaining project stability.
Importance:
Understanding the Change Order is integral because changes are inevitable during the project lifecycle, and managing these changes can significantly impact the project outcome. It allows for a systematic approach to handle amendments and ensures they are adequately documented, evaluated, and authorized, ensuring transparency and traceability.
How it Works:
To initiate a Change Order, a Change Request needs to be submitted first, evaluated by the Change Control Board (CCB), and if approved, it results in a change order. This order will then be implemented, and the project plan would be updated accordingly.
Exam Tips:
In your exam, anticipate questions related to the process of change order, its impact on project variables, and its relation with Change Management Plan. Always remember that a Change Order is the result of an approved Change Request and is a formal directive. It should lead to updates in the project management plan and project documents.
Remember, unauthorized changes are termed as Scope Creep and should be avoided. Also, the Change log is an essential document that records all changes, including both requested and actual changes.

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PMP - Change Control Example Questions

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Question 1

Your team has completed a thorough analysis of a change request and determined that it would add value to the project. However, the change would cause considerable delays. What should you do?

Correct Answer: Present the analysis to the change control board

The best course of action, when a change will add value but also cause delays, is to present the analysis to the change control board. This option is based on the principle that it's not solely up to you to decide on such changes to the project; it must be run through the appropriate procedures. Implementing the change immediately, goes against this process and can lead to poor results, and rejecting the request goes against the fact that it will add value to the project. The option to redesign the project to accommodate the changes may be an alternative, however, it is a more drastic measure and would usually be considered after the change control board has reviewed the analysis.

Question 2

During a project to develop a new mobile application, you discover that a team member has implemented a change in the user interface without following the change control process. The change has improved the application's usability but was not approved by stakeholders. Additionally, the change could affect the project's schedule and cost. What should you do as the project manager?

Correct Answer: Acknowledge the change, evaluate its impact, and initiate the formal change control process involving stakeholders for approval.

The best course of action is to acknowledge the change, evaluate its impact, and initiate the formal change control process involving stakeholders for approval. As the project manager, it's essential to ensure that all changes, even those that seem beneficial, go through the proper change control procedures. This maintains transparency, stakeholder engagement, and adherence to the project's scope, schedule, and budget. By evaluating the change formally, you can assess its effects on the project's objectives and obtain the necessary approvals. This prevents potential issues such as scope creep, budget overruns, or schedule delays that could arise from unapproved changes. Accepting the change without following the process may lead to unmanaged risks and disregard stakeholder involvement. Reprimanding the team member and reversing the change might overlook the potential benefits of the improvement. Proceeding with the change and informing stakeholders later compromises the integrity of the change control process and may lead to trust issues or conflicts.

Question 3

When a change order is proposed which introduces a new technology that could significantly improve the project's deliverability, but also requires a reevaluation of the project scope and additional costs, what should the project manager do first, according to PMBOK Guide Seventh Edition?

Correct Answer: Assess the change order's perceived value and its alignment with the project's objectives

According to the PMBOK Guide Seventh Edition, when a change order introduces a new technology that could impact the project's deliverability, cost, and scope, the project manager should first assess the change order's perceived value and its alignment with the project's objectives. This involves evaluating whether the new technology will provide benefits that outweigh the costs and if it supports the project's main goals. Making such an assessment helps ensure that decisions are strategic and contribute to the project's success. Automatically incorporating the new technology without such an assessment could lead to project failure due to misalignment with project objectives or constraints. Proceeding with the change merely to please the sponsor without considering its overall impact is not advisable because it might not be in the best interest of the project. Postponing technology changes until the next project phase might not take advantage of current opportunities and could delay benefits that align with the project objectives. Therefore, these other options are inappropriate first steps compared to the thoughtful evaluation of the change order's value and alignment with project objectives.

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