You are the project manager working on a $10 million project to deploy Microsoft Dynamics. The cloud-based version of MS Dynamics will replace an existing system that has been used for 30 years, is now barely functional, frequently has outages, and costs too much on-site support. The project duration is 12 months and 6 months of work is completed. The project has spent $5 million to date and has a remaining $5 million remaining in the budget. The project sponsor in conjunction with executives in the organization asks you to reduce your remaining budget by 10%. They expect recommendations in three days. 1) What actions do you take? 2) draft plan that lists the new budget to achieve a 10% reduction. Project costs estimates Budget item $ Estimation method Project team salary (20 people) 2,000,000 Cost template Overtime 200,000 As required Vendor support (10 people) 1,000,000 Negotiated contract based on tasks Data migration tasks 800,000 Combination of fixed and three-point estimates Utilities (mainly network) 200,000 Quote based on usage estimate Contingency 500,000 Percentage based on risks IT/HR Allocation 250,000 Project size allocation Steering Committee meeting expenses 50,000 Project allocation Total 5,000,000