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PMP Practice: Update Documentation for Changes

Question 6 of 8 in Manage and Control Changes

Chukwuemeka Obiora is managing a government contract for Sapphire Armadillo Games to modernize warehouse management systems across twelve distribution centers. The project is operating under a fixed-price contract with strict regulatory compliance requirements. During month four of the eight-month timeline, a new federal data privacy regulation is enacted that requires significant modifications to the authentication module and data retention protocols. The compliance officer confirms that the project must adhere to the new regulation before deployment, or the client will face substantial penalties. The project sponsor has acknowledged the regulatory change but emphasizes that the contract price and final delivery date cannot be adjusted without formal approval from the contracting authority. Chukwuemeka has verified that implementing the required changes will add approximately three weeks to the critical path and increase costs by $180,000. What should Chukwuemeka do?
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Correct answer: Submit a formal change request through the integrated change control process, documenting the regulatory requirement, schedule impact, cost implications, and recommended contract modification for sponsor and client review

Explanation

In a predictive, contractually-governed project with regulatory compliance requirements, the project manager must follow the formal change control process before authorizing work or expenditures outside the approved baseline. The scenario establishes that this is a government fixed-price contract requiring formal approval for scope, schedule, and cost changes. The compliance requirement is mandatory and impacts all three baselines. The appropriate first step is to document the change through the integrated change control process, capturing the regulatory driver, technical requirements, impacts to schedule and cost, and proposed contract modification. This creates the formal record necessary for the sponsor and contracting authority to evaluate and approve the change. The change request serves as the foundation for all subsequent actions—contract negotiation, baseline updates, and work authorization. Since the sponsor has already acknowledged the situation but emphasized that formal approval is required, Chukwuemeka must initiate the documented change request process. This protects both organizations legally and ensures proper authorization before resources are committed or baselines are adjusted.

**Why not A:** Scheduling a meeting with the compliance officer and sponsor to explore alternative technical solutions before pursuing contract changes is a reasonable idea but not the most critical first step in a government fixed-price contract context. The contract already establishes formal approval processes for scope, schedule, and cost changes. Exploring alternatives without first initiating formal documentation means that any work or decisions made during that exploration could be undertaken without proper authorization, creating legal and financial exposure.

**Why not B:** Updating the risk register and escalating to the governance board for guidance treats the regulatory compliance issue as an uncertain risk rather than a confirmed, mandatory change that has already been validated by the compliance officer. The governance board's appropriate input here is through the formal change control process, not an informal escalation seeking guidance on how to proceed. Using the risk register as the primary vehicle delays the formal change request that will ultimately be required for contract modification.

**Why not D:** Directing the development team to begin implementing the authentication and data retention changes immediately before receiving formal authorization violates the contractual governance framework of a government fixed-price contract. Authorizing $180,000 of work and a three-week schedule extension without formal approval exposes the organization legally, and the resulting work may not be reimbursable without an approved contract modification. The sponsor has explicitly stated the contract price and delivery date cannot be adjusted without formal approval—starting work before that approval directly contradicts this requirement.

Key Concept

This question covers Update Documentation for Changes under Manage and Control Changes (Business Environment).

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