CAPM Practice: Determine how to document project controls of predictive, plan-based projects

TCPI = (BAC - EV) / (BAC - AC). A TCPI of 1.35 means: for every dollar remaining in the budget, the team must produce $1.35 of earned value. This is 35% more efficient than perfect (1.0) — generally considered unachievable if current performance is already below 1.0. This should trigger a conversation with the sponsor about either: (1) accepting a budget overrun and setting a new EAC target, or (2) significantly reducing scope to bring EAC within BAC. A TCPI > 1.2 is a common threshold for declaring budget recovery unachievable.

**Why not A:** While the project may indeed be over budget, saying "no action is needed" is incorrect. A TCPI of 1.35 at month 9 of 12 is a serious warning that budget recovery is likely unachievable, and it absolutely requires escalation and action.

**Why not C:** A TCPI of 1.35 is not within an acceptable range. A TCPI above 1.2 is generally considered a threshold at which budget recovery becomes unrealistic. Claiming no escalation is needed ignores the severity of the cost performance gap.

**Why not D:** TCPI measures cost efficiency requirements, not schedule speed. It indicates how efficiently the remaining budget must be used, not how fast work must be performed. Schedule performance is measured by SPI, not TCPI.