Cut Cost Estimate

Discuss PMP doubts, tips and lesson learned. iZenBridge makes PMP® Certification easy
Sud
Contributor
Contributor
Posts: 129
Joined: Sun Jun 29, 2014 4:06 am

Cut Cost Estimate

Postby Sud Sat Aug 16, 2014 12:51 pm

As a project manager, you present your cost estimate to the project sponsor and he asks you to cut the cost by 10%. What should you do?

Replace originally planned resources with new resources at lower rates
Strongly say No to Sponsor and walk out from the Project
Ask all team members to reduce cost of their activities by 10%
Cut some of the project activities and inform the sponsor

How to decide that Resources should be replaced or cost should be cut?
Sud
Contributor
Contributor
Posts: 129
Joined: Sun Jun 29, 2014 4:06 am

Re: Cut Cost Estimate

Postby Sud Mon Aug 18, 2014 4:08 am

Any Idea on this?
namita
Super Member
Super Member
Posts: 502
Joined: Wed Dec 11, 2013 10:25 am

Re: Cut Cost Estimate

Postby namita Mon Aug 18, 2014 1:27 pm

here you go

Replace originally planned resources with new resources at lower rates - This is no always in hands of PM so can't blindly do it
Strongly say No to Sponsor and walk out from the Project - Ethically challenging option
Ask all team members to reduce cost of their activities by 10% - How will team members finish same work in less cost?
Cut some of the project activities and inform the sponsor - Yes, if we cut some work then automatically cost/time can be cut.

Return to “PMP® Open Forum”

Who is online

Users browsing this forum: Google [Bot] and 6 guests