Project Management Professional (PMP) — Question 437

A third-party supplier demands payment for the services provided for a project. The agreement was that payment would be made after the organization receives payment from the client. The third-party supplier lacks the capital to meet their payroll and has informed the project manager that if they do not receive payment quickly, they will withdraw team members from the project.
What should the project manager do?

Answer options

• A. Explain the third-party supplier situation to the client and request payment.
• B. Inform the client that the project must be delayed until payment is received.
• C. Reassign resources from other projects to pay the third-party supplier.
• D. Process a bank loan to pay the payroll of the third-party supplier.

Correct answer: A

Explanation

The correct answer is A because it directly addresses the vendor's financial predicament while maintaining transparency with the client. Option B delays the project unnecessarily, option C reallocates resources without addressing the payment issue, and option D involves taking on debt instead of resolving the situation through communication.