Our project depends on a funding approval that is not confirmed. Can work begin?

Unfunded commitment risk

Separate authorized preparatory activity from commitments that assume future funding. Establish a spending boundary and a stop point so discovery does not quietly become an unfunded delivery project.

What to do now

  1. Confirm available authority and funds
  2. Classify reversible and irreversible work
  3. Approve a capped preparatory scope
  4. Set a funding decision deadline
Recommended action flow for unfunded commitment risk: Confirm available authority and funds then Classify reversible and irreversible work then Approve a capped preparatory scope then Set a funding decision deadline. Escalate when the next commitment exceeds confirmed authorization.

When to escalate

Escalate when

The next commitment exceeds confirmed authorization.

Who decides

The accountable sponsor

Example

A team completes requirements interviews but postpones a supplier order until the funding decision is documented.

Mistake to avoid

Treating expected funding as money already available.

Prevent a repeat

At each stage decision, check that the expected outcome, owner and justification remain valid.

Suggested ApprovedFlow setup

  • Projects
  • Documents
  • Approvals

Keep the decision brief with the project and request a recorded sponsor decision before the next commitment. See the platform

Related cases

Practice references