An exception report is produced when a stage plan or project plan is forecast to exceed tolerance levels set. It is prepared by the project manager in order to inform the project board of the situation, and to offer options and recommendations for the way to proceed.

The following quality criteria apply to an exception report:

  • The current plan must accurately show the status of time and cost performance.
  • The reason(s) for the deviation must be stated, the exception clearly analyzed, and any impacts assessed and fully described.
  • The implications for the business case have been considered and the impact on the overall project plan has been calculated.
  • Options are analyzed (including any risks associated with them) and recommendations are made for the most appropriate way to proceed.
  • The exception report is given in a timely and appropriate manner.

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