off-specification is something that should be provided by the project, but currently is not (or is forecast not to be). It might be a missing product or a product not meeting its specifications. It is one type of issue.
First bullet:
4.6.4 Define key concepts related to the ‘issues’ practice:
• issue (including types of issue: change, problem/concern, business opportunity, request for change, off-specification) (10.1, 10.2.2, 10.2.3)
• project baseline (10.1)
• change control (10.2.3)
An off-specification is something that is delivered but that isn’t right. E.g. Not fulfilling the quality specifications or perhaps not being delivered at all. A type of issue in PRINCE2.
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