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When customer is out of money, what project manager should do?

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Wally123
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Joined: Thu Jan 05, 2017 12:43 pm

When customer is out of money, what project manager should do?

Postby Wally123 Mon Apr 17, 2017 3:14 am

The customer on a project tells the project manager they have run out of money to pay for the project. What should the project manager do FIRST?

a) Shift more of the work to later in the schedule to allow time for the customer to get the funds
b) Close Project of Phase
c) Stop work
d) Release part of the project team

I have chosen A, but the answer is b.
manishpn
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Re: When customer is out of money, what project manager should do?

Postby manishpn Mon Apr 17, 2017 7:56 am

Wally123 wrote:The customer on a project tells the project manager they have run out of money to pay for the project. What should the project manager do FIRST?

This situation talks about client-vendor relationship, if your client has no money to pay to your project, then how will you as Vendor organizations PM continue with your project and pay expenses for your project team and resources?
Even if you shift work later in phase client there is no mention in the question that client will in future get money for your project. So the best option is to close th project in current situation and if in future client has managed to get funding then you can re initiate the remaining work as new project in future.


a) Shift more of the work to later in the schedule to allow time for the customer to get the funds
b) Close Project of Phase
c) Stop work
d) Release part of the project team

I have chosen A, but the answer is b.
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/

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