Exam PMP topic 1 question 988 discussion

What should Project Manager do First - Update the Risk Management Plan.

D. Obtain the permits before continuing the build. Building without the necessary permits is not only illegal but also introduces significant risk to the project, including potential fines, shutdowns, or legal consequences. Although continuing without the permits might seem like a way to avoid delay, it could lead to far greater issues down the line. Obtaining the permits ensures compliance with regulations and avoids escalating costs and legal challenges.

This is a test. In reality, we would calculate the cost, but this is where we have to stop construction.

D. Obtain the permits before continuing the build. Explanation: Obtaining the permits ensures compliance with legal and regulatory requirements. Continuing the project without the permits can result in significant fines and potential legal issues, which could ultimately be more costly and damaging to the project.

D - otherwise its a legal and might have further consequences

In this situation, the project manager should prioritize obtaining the required building permits before continuing with the construction. Failing to do so could lead to legal and financial consequences. Once the permits are obtained, the project manager can proceed with the construction in compliance with regulations. Updating the risk management plan and reviewing lessons learned may be valuable for future projects but do not address the immediate need to obtain the permits.

Respuesta es D pero el la vida real es A

D is the answer Legal and financial risk: Continuing construction without permits exposes the project to significant legal repercussions, including daily fines of $1,000, which could quickly amount to much more than the permit cost. Additionally, the construction might be halted or even forced to be demolished, further disrupting the schedule and incurring even higher costs. Project delay: While obtaining the permits will delay the project for a month, continuing without them increases the risk of a longer overall delay if construction is stopped by authorities. The $35,000 permit cost is a smaller financial risk compared to potential fines and construction stoppages. Responsible project management: Obtaining the necessary permits is a fundamental requirement for construction projects. Continuing without them shows disregard for safety regulations and legal compliance

The gap between answer A and answer D is one month. A saved 1 month, spent $30k. Whether it worth or not, review lesson learned is a good choice. C is best answer.

it is mentioned obtaining permit will delay 1 month, which means in 1 month the permit can obtained. choosing between $35,000 and $30,000 shouldn't be C?

The real answer is missing. What the Project Manager should do first is escalate the issue to the project sponsor. Then, and only then, a decision should be made on how to continue.

While updating the risk management plan is crucial for long-term risk mitigation and project improvement, the primary concern in the immediate scenario is to avoid the daily fines and legal complications by obtaining the required permits before continuing with the project.

Building w/o permit would cost 30,000 USD for 30 days as per penatly which is less than cost of waiting. But point to note here is that there is no guarantee that permit will be given at all or may take more time. So, there is a high risk associated with it. And also following rules, it should be good to wait until permit is there. Both ways, PM should wait. So, option D is the answer.