CPE Project Baseline & Change Management 2 — Questions and Answers
Question 1: Which of the following changes would typically require a formal baseline change rather than being absorbed within existing management reserve?
- A minor rework due to a quality inspection failure
- A customer-directed addition of a significant new deliverable (Correct answer)
- A small cost overrun on a single work package
- A one-week weather delay on a non-critical path activity
Correct answer: A customer-directed addition of a significant new deliverable
Customer-directed additions of significant new deliverables represent approved scope changes that require formal baseline revision and are not absorbed by management reserve.
Question 2: What is the difference between a 'baseline change' and a 'replan' in project controls?
- A baseline change updates the authorized budget; a replan redistributes budget within the same authorized total (Correct answer)
- A replan increases the total project budget; a baseline change does not
- They are interchangeable terms for the same activity
- A baseline change is informal; a replan requires formal approval
Correct answer: A baseline change updates the authorized budget; a replan redistributes budget within the same authorized total
A baseline change increases or decreases the authorized total (typically from a scope change), while a replan redistributes existing authorized budget without changing the total.
Question 3: In an Earned Value Management system, which baseline element defines WHEN work is planned to be accomplished?
- Budget at Completion (BAC)
- Estimate at Completion (EAC)
- Time-Phased Budget (BCWS/PV) (Correct answer)
- Estimate to Complete (ETC)
Correct answer: Time-Phased Budget (BCWS/PV)
The time-phased budget (Planned Value / BCWS) defines both the cost and timing of planned work, forming the time dimension of the performance measurement baseline.
Question 4: A project manager discovers that field engineers have been incorporating owner-requested changes without issuing change orders. What is the MOST serious consequence of this practice?
- The project schedule will automatically be updated in the system
- The contractor may lose entitlement to additional compensation and time (Correct answer)
- The owner will be required to issue a formal apology to the contractor
- Management reserves will be automatically released to cover the extra work
Correct answer: The contractor may lose entitlement to additional compensation and time
Working outside the formal change order process can waive the contractor's contractual right to additional compensation and schedule extensions for that work.
Question 5: What is a 'Change Control Board' (CCB)?
- A government regulatory body that approves construction permits
- A group of stakeholders authorized to approve or reject change requests (Correct answer)
- A software tool used to track project changes automatically
- A committee that reviews only cost-related project changes
Correct answer: A group of stakeholders authorized to approve or reject change requests
A CCB is a formally constituted group with the authority to review, evaluate, approve, delay, or reject changes to project baselines.
Question 6: Which of the following BEST describes an 'undistributed budget' (UB) in project controls?
- Budget held in reserve for unidentified future risks
- Authorized budget not yet assigned to specific control accounts or work packages (Correct answer)
- Overspent budget that has not been reported to management
- Budget remaining after all work has been completed
Correct answer: Authorized budget not yet assigned to specific control accounts or work packages
Undistributed budget is authorized project budget that has not yet been formally assigned to work packages or control accounts, often pending detailed planning of approved changes.
Question 7: What is the primary reason for maintaining a 'frozen' or locked baseline rather than continuously updating it?
- To prevent project managers from making any schedule adjustments
- To provide a stable reference point that enables meaningful performance measurement (Correct answer)
- To reduce the workload of project control personnel
- To satisfy contract requirements for fixed-price projects only
Correct answer: To provide a stable reference point that enables meaningful performance measurement
A stable, locked baseline allows valid comparison of actual versus planned performance; continuous updates would mask variances and eliminate meaningful trend analysis.
CPE Project Baseline & Change Management 2
Which of the following changes would typically require a formal baseline change rather than being absorbed within existing management reserve?