Assessment 1 Part 2 –

Project Exception Report

• An exception report is a tool used when the project or stage is forecast to exceed given tolerances e.g. cost, schedule etc.
• This report is a vital communication tool aimed at the sponsor, board members and/or steering committee, making suggestions and asking for guidance from higher
• You must complete exception report in the context of this case

Assessment 1 Part 2                                                          Contd.

• Download the exception report template from

•        Establish the need for an exception report

• Provide your motivation to compile and raise the exception report to the project board along with appropriate reasons for your decision.
• Maximum 350-500 words

Assessment 1 Part 2                                                         Contd.

•        Exception title

• An overview of the cost-overrun or behind-schedule or

another exception being reported

•        Cause of the exception

• A description of the cause of a deviation from the current plan

•        Consequences of the deviation

• What the implications are if the deviation is not addressed for the project, corporate, programme management and the customer

Assessment 1 Part 2                                                         Contd.

•        Options

• What 2-3 options are available to address the deviation and the effect of each option on the business case, risks, and
• Recommendation
  • Of the available options, which one is recommended, and why?

•        Lessons

• What lessons can be learnt from this exception which might potentially be beneficial for this project or future project?

Exception reporting

If you were reporting to a project board, and the given

tolerances were:

• Cost: ± $ 1,000
• Time: ± 1 week,
• When will exception report need to be created and submitted to project board?
• What would the report consist of?
  • Ref: Axelos, Managing Successful Projects with PRINCE2® Appendix A.10