Cost Change Control

Correct Answer: Evaluate the change request

The best course of action when a significant change in the budget is requested is the first step to 'Evaluate the change request'. As a project manager, you can't immediately adjust the budget because such an action would completely disregard the stakeholder's change request without analysing the effects of the proposed change. Also, choosing to 'Ignore the request' is not a good approach because ignoring stakeholder requests may agitate stakeholders and lead to a conflict, which could harm the project's progress. 'Escalating the issue to the project sponsor' is also not the best first step, because as a project manager, one should first evaluate the change request and decide if escalation is necessary.

Correct Answer: Communicate the new completion date and update the project schedule

The best course of action when a project manager discovers an approved cost change request will cause the project to delay is to 'Communicate the new completion date and update the project schedule'. This is because one of the core responsibilities of a project manager is to keep all project stakeholders informed of any changes to the project plan, including cost and timeline changes. Ignoring the delay is not an option as it will lead to further issues and misunderstandings in the future. Rejecting the approved change request after it's been approved would create confusion, community disagreement, and likely not resolve the delay issue. Blaming the team for the delay is not a constructive approach. Instead, the project manager should always deal with issues directly, professionally, and in a timely manner.

Correct Answer: update the change log with the estimated cost impact

The best answer is to update the change log with the estimated cost impact of $6500. The change log is the appropriate document to record the cost impact of the requested change, as determined by the change control board. Notifying stakeholders about the cost increase is not the most appropriate action at this point, as the change has not been approved yet and the cost impact is just an estimate. Revising the project budget baseline is premature, as the change has not been approved and incorporated into the project scope. Requesting additional funding from the sponsor is not necessary at this stage, as the change has not been approved and the cost impact may be managed within the existing budget.