Program Management Professional (PgMP) — Question 344

A component shipment was delayed due to a global supply chain issue. This resulted in stretching the schedule of one component in a program, yet the program manager was still confident in delivering the program far ahead of schedule at no extra cost. Despite this, the customer wants to apply a delay penalty on the delayed component, because the contract is unclear about considering global issues as a force majeure.

After alignment with internal key stakeholders, what should the program manager do next?

Answer options

• A. Update the program roadmap and request utilization of the contingency reserve for the penalty.
• B. Update the program business case and request utilization of the management reserve for the penalty.
• C. Work with the legal team to manifest an interpretation of the clauses that can support filing a case in court.
• D. Negotiate with the customer to avoid the penalty in return for crashing the full program schedule.

Correct answer: C

Explanation

The correct answer is C because involving the legal team can help clarify the contract's language and determine if a case can be made against the penalty, especially in light of the unclear force majeure terms. Options A and B focus on financial reserves, which do not address the legal implications of the penalty. Option D involves negotiation but may not adequately protect the program manager's interests without a clear understanding of the contract.