Question: Three months into a lump sum project, this project manager has realized that his company is overrunning costs on half of the direct work activities.

Three months into a lump sum project, this project manager has realized that his company is overrunning costs on half of the direct work activities. They are under-running on the other half. The bottom line looks okay, maybe even on the plus side. Is this possible? Can he do anything about the codes that are overrunning? Since the bottom line looks okay, should he even worry about it?

This projects superintendent does not want to report any single line item cost overruns to the home office and asks the PM to forecast the original estimate in each case so that the variances zero out.

How can the PM cover up this situation? What are the ramifications if he does what the superintendent is asking? As long as the project makes the original fee, does it really matter how individual cost codes turn out?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

answer part b only Cost overruns A. Three months into a lump sum project, this project manager has realized that his company is overrunning costs on half of the direct work activities. They are...

answer part B please Cost overruns A. Three months into a lump sum project, this project manager has realized that his company is overrunning costs on half of the direct work activities. They are...

Cost overruns A. Three months into a lump sum project, this project manager has realized that his company is overrunning costs on half of the direct work activities. They are under-running on the...

MRKT 310 Principles of Marketing Strategic Marketing & Value for the Customer Please use the service offering below; Lyft PRODUCT CHOICE & CONTENT Your focus will be on the domestic, or U.S....

The discussion questions can be answered by the Qualipro Casy Study in the pictures following them. Assume that revenues begin in 2009 and total $1,000,000. They double in 2010 to $2,000,000. You can...

Develop and present chapter 1 (PM Using Earned Value) from the text. You will need to provide an activity and/or post a few questions from the chapter to be discussed. You will need to present the...

PLEASE ONLY WRITE REPORT ON THESE 2 PARTS FOR 1 PAGES, THANK YOU. Definition of Requirements [Identify detail requirement of key stakeholders] Statement of Work [A Scope Statement, reflecting...

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

ARTICLE 2. RESISTERS AT WORK: GENERATING PRODUCTIVE RESISTANCE IN THE WORKPLACE. Introduction Resistance has had a checkered career. In the popular imagination, after the experiences of various...

governance model to align changing business needs with IT While the Business Monarchy and IT Monarchy archetypes delivery. represent a centralized decision making structure, Feudal archetype reflects...

An incandescent light bulb contains a volume V of argon at pressure Pi. The bulb is switched on and constant power "is transferred to the argon for a time interval "t. (a) Show that the pressure Pf...

Find the distribution function of the random variable of part (a) of Exercise 3.7 and plot its graph.

Oceanview Marine Company 22-19 Results of Inventory Pricing Tests: Nonstatistical (continued) GE 7/13 As at December 31, 2018 Decision (check one): Accept population as stated. (No adjustment...

When older adults have difficulty with transportation and communication, or may be reluctant to request needed assistance to which they are entitled, they may be in need of: Group of answer choices...