Who sets the tolerances for a work package?

According to the PRINCE2 methodology, there is a clear hierarchy for setting tolerances, which enables the 'Manage by Exception' principle. The Project Board sets stage-level tolerances for the Project Manager. The Project Manager, in turn, is responsible for the day-to-day management of the stage and authorizes work to be done by Team Managers through Work Packages. As part of authorizing a Work Package, the Project Manager sets the tolerances for time, cost, scope, quality, risk, and benefits for that specific package of work. These Work Package tolerances must be within the overall stage tolerances.

A. The project board: The Project Board sets tolerances for each management stage and delegates the day-to-day management of that stage to the Project Manager.
C. The team manager: The Team Manager accepts the Work Package and is responsible for delivering its products within the tolerances set by the Project Manager.
D. Corporate or programme management: This level of management sets the overall project-level tolerances for the Project Board, not the detailed Work Package tolerances.

1. AXELOS. (2017). Managing Successful Projects with PRINCE2 (6th ed.). TSO (The Stationery Office).

Section 10.2.2

Tolerances

Figure 10.2 ‘Levels of tolerance’: This diagram explicitly shows that the Project Manager sets Work Package tolerance for the Team Manager.

Section 18.4.1

‘Authorize a Work Package’: This section details the activity where the Project Manager agrees on the constraints

including tolerances

for a Work Package with a Team Manager.

Appendix A

Section A.20.2

‘Project Manager responsibilities’: States the Project Manager is responsible to "Agree the Work Package with the Team Manager". This agreement includes defining and setting the tolerances.