A Subcontractor Has Submitted Design Documentation on the Deliverable Due

question 330

Multiple Choice

A subcontractor has submitted design documentation on the deliverable due date, but it will require rework. The activity is on the critical path of the project schedule. Which of the following should the project manager do NEXT?

• A) Determine the expected duration of the rework and complete a charge request to modify the project baselines.
• B) Notify the project sponsor to schedule and facilitate a team meeting to rework the design documentation.
• C) Determine the expected duration of the rework with any associated quality control activities and add the duration to an updated version of the WBS.
• D) Update the master project schedule, and distribute it all stakeholders in accordance with the project communications plan.

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Definitions:

Financing Pressure

The stress or difficulty a company faces in securing funds to finance its operations or expand its business.

Liquidity

The extent to which an asset or security can be quickly bought or sold in the market without affecting its price.

Payback Period

The number of years it takes a firm to recover its project investment. Payback does not capture a project’s entire cash flow stream and is thus not the preferred evaluation method. Note, however, that the payback does measure a project’s liquidity, and hence many firms use it as a risk measure.

Capital Budget Expenditures

Outlays of funds by a company for major investments or acquisitions intended to drive future growth.