Reallocating $100 million from the budget

Assignment Help Management Theories

Reference no: EM133642064

Question: The budget for the construction of the hospital has been approved for $400 million dollars with a reserve of $100 million estimated due to probable uncertainties within the project. The project has been planned in 5 phases. Based on the planning of the project, the budget for the project has also been planned and allocated for the 5 phases. Due to the level of skills and experience that John, the project manager has gained over his 20 years working in the company, the management of the company has provided John complete access to the funds, based on the urgency and importance of the project. However, John has observed, that the cost of execution of phase 2 of the project has exceeded the stipulated amount allocated for phase-2, because of which, John, has redistributed the cost of activities from the budget of phase-3 and reallocated $100 million from phase-3 to phase-2, resulting in phase-2 being brought in line with the performance indicators of the project. Did John take the right corrective action in reallocating $100 million from the budget

Reference no: EM133642064

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