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The estimated cost of project is $5,,. The project sponsor has approved this amount. However, you earned value calculations indicate that the project will be completed on time and under budget by5,,. Based on this calculation your personal profit will decrease by $,. Given the estimated decrease in personal profit, what action should you take? A. Suggest to the project sponsor that additional features should be added in order to leverage the entire project B. Communicate the projected financial outcome to the project sponsor C. Pad additional tasks to the projected financial outcome to increase the actual project cost D. Continue to bill the customer for the full $5,, as originally estimated
You can't capture anything with worms, as Pongoid correctly pointed out, but the links below should help.
B. IN ALL PROJECT, it's necessary to include in the master contract the possibility to renegociate this kind of underestimate
B, every situation can change by better communication.
C. Pad additional tasks to the projected financial outcome to increase the actual project cost
1st of all develop the Estimated budget based on cost center.
Margin decided based on Div based and activity based.
Then bottom up estimating for cost cutting and whereever possible project will be awarded for sub contract on lumsum based.
Once COD and BG will be for material and subcontract based on contract terms and condition, subcontractor must be with strong with finanacial status, so that payment delay will not affect the project.
B. Communicate the projected financial outcome to the project sponsor
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