What are discretionary projects?

Discretionary projects are defined as those projects where management has the discretion or choice to decide whether or not to implement them. These projects are typically initiated based on business needs, strategic priorities, or potential benefits rather than on any mandatory requirements. Management typically evaluates these projects against the organization's goals and resource availability, allowing for flexibility in how and when they are executed.

In contrast, the other types of projects listed, such as those that have mandatory deadlines or require government approval, are typically driven by external constraints or regulatory requirements, leaving little room for managerial choice. Similarly, projects with fixed budgets may not possess the discretionary nature since budget limitations can dictate the project's scope and implementation regardless of management's preference. Thus, the defining characteristic of discretionary projects is the freedom and flexibility management has in deciding their initiation and execution.