ExpertPMP · Question 78 · Task 8: Negotiate project agreements
A project manager is negotiating a contract modification with a critical vendor who is requesting additional compensation due to scope changes and material cost increases. The vendor's request is justified, but the total amount exceeds the project manager's approval authority. What should the project manager do FIRST?
A project manager is negotiating a contract modification with a critical vendor who is requesting additional compensation due to scope changes and material cost increases. The vendor's request is justified, but the total amount exceeds the project manager's approval authority. What should the project manager do FIRST?
Answer options:
Thoroughly analyze the vendor's justification and explore alternative solutions before escalating
Immediately escalate to the sponsor since the amount exceeds the approval authority
Accept the vendor's request since they are critical to project success
Reject the request to maintain project budget constraints and find alternative vendors
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