Every project walks a tightrope between control and flexibility. Too much control, and innovation suffocates. Too little, and chaos takes over.
That’s where PRINCE2® tolerances step in — quietly ensuring that projects stay within safe boundaries while giving project managers the freedom to adapt as reality unfolds.

? What Are Tolerances in PRINCE2®?

In PRINCE2®, a tolerance is the permissible deviation from the original plan — a safety cushion that lets project managers make small adjustments without escalating every issue to the Project Board.

Think of tolerances as “the breathing space” within which a project can move freely before higher authorities need to intervene.

The six standard PRINCE2 tolerances align with the six project performance targets:

1. Time – How much delay can be accepted?
2. Cost – What’s the budget flexibility allowed?
3. Quality – How much deviation from the expected quality is permissible?
4. Scope – What can be adjusted without compromising business justification?
5. Risk – What level of uncertainty can be tolerated?
6. Benefits – What’s the acceptable range of deviation in forecasted outcomes?

? How Tolerances Work in Real Projects

Imagine you’re managing a product launch under PRINCE2® governance.

• The Project Board sets overall tolerances for the entire project — say, ±10% on cost and ±5 days on schedule.
• You, as the Project Manager, set tighter tolerances for each Stage Plan — maybe ±5% cost and ±2 days schedule.
• If your stage performance remains within those limits, you continue smoothly.
• But if you expect to breach a tolerance — for example, a two-week delay due to supplier issues — you raise an exception report to the Project Board for direction.

This cascading structure ensures control at every level while preventing constant upward escalation.

? Why Tolerances Matter

PRINCE2® tolerances:

• Empower Project Managers to make decisions confidently within limits.
• Reduce micro-management by clarifying escalation points.
• Encourage realism — projects operate with natural variations.
• Support governance by defining accountability at every level.

In essence, tolerances ensure your project doesn’t just survive uncertainty — it thrives within it.

? Common Mistakes to Avoid

1. Undefined tolerances – Leaving them vague defeats their purpose.
2. Too narrow or too broad – Tight limits create bottlenecks; wide ones blur accountability.
3. Not updating tolerances per stage – Each stage has unique risks; static tolerances can mislead.
4. Ignoring early warnings – A project manager should forecast breaches before they happen.

? Bringing It All Together

PRINCE2® tolerances act like guardrails on a winding road — they don’t dictate how you drive, but they keep you from going off course.
Used effectively, they balance autonomy and control, making your project governance mature, proactive, and resilient to change.

So the next time you manage a PRINCE2® project, remember:

Tolerances aren’t about restriction — they’re about responsible freedom.