Project Management Professional (PMP)® Examination Content OutlineBusiness EnvironmentMedium

A project manager is overseeing the construction of a new manufacturing plant in a region with strict environmental protection laws. During the project, a new government directive is issued, requiring an additional, highly specialized permit for certain construction activities that were not previously covered. Obtaining this permit will cause a minimum 3-month delay and incur significant additional costs. What is the project manager's most appropriate next step?

  1. AProceed with construction as planned, appealing the directive later.
  2. BSubmit a change request to the sponsor, detailing the impact on schedule and budget, along with proposed mitigation strategies.
  3. CImmediately halt all construction activities until the permit is obtained.
  4. DInstruct the construction team to find a way to bypass the new permit requirement.
Show answer & explanation

Correct answer: B. Submit a change request to the sponsor, detailing the impact on schedule and budget, along with proposed mitigation strategies.

New government directives are compliance requirements that must be managed. The project manager must assess the impact, document it, and formally propose a solution (mitigation strategies) to the project sponsor via a change request for a decision, rather than ignoring it, bypassing it, or unilaterally halting the project.

Why the other options are wrong

  • A. Proceeding without the required permit is a serious compliance violation with severe legal and financial consequences.
  • C. Immediately halting all activities without stakeholder consultation or a clear plan can lead to unnecessary costs and disruptions. A formal process is needed.
  • D. Attempting to bypass legal requirements is unethical, illegal, and can lead to severe penalties and project failure.

Regulatory Compliance Change Management

The systematic process of identifying, assessing the impact of, and formally addressing changes in laws, regulations, or standards that affect a project.

  • Requires formal change control.
  • Involves impact analysis on project baselines.
  • Prioritizes legal adherence and risk mitigation.

Memory trick: Regulations shift? Request, report, resolve.

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