Question: You are the PM and your customer has requested that you inflate your planned cost estimates by 25%. His logic is that management always reduces

You are the PM and your customer has requested that you inflate your planned cost estimates by 25%. His logic is that management always reduces the cost of project estimates by about this amount so this strategy would balance out the required budget. Which of the following is the best response to this situation?

A. Do as the customer asked to ensure that the project requirements can be met by adding the increase as a contingency reserve B. Do as the customer asked to ensure that the project requirements can be met by adding the increase across each task C. Do as the customer asked by creating an estimate for the customer’s management and another for the actual project implementation D. Complete an accurate estimate of the project. In addition, create a risk assessment showing why the decreased project budget would be inadequate.

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