Both plans are good but I believe that when SV is neagative and cost variance is positive would be a better plan because you would be under budget. The work being done is slacking but it could be fixed if the project manger adds reinforcement or puts more pressure on his team to worker harder. The first option is ok but I don’t think it is a better option because you will be over budget which will cost the company more money. It will be hard to recuperate from. The work being done is on scheduled however the more the team proceed in the schedule the more cost it will accumulate. The over budget can be fixed but the project must reduce on costly test, expensive material, or etc. which can increase risk. This is why I choose option 2 there is a better chance in fixing the issue without adding more risk to the project.