The project environment consists of all the factors which may affect the project during its life. It also determines the setting and circumstances in which the project is executed.
The environment influences the way a project is executed. The scale, timing and nature of any other projects being carried out by an organization could affect the plans which are drawn up for a new project. The history of previous projects carried out for a customer might influence how a current project is managed.
The environment is the main determinant of the uncertainty which will be inherent in it. For example, the political uncertainty in a country might influence the timing and resourcing of the separate activities of the project.
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