Project Management Professional (PMP) — Question 962

In the execution phase of a large construction project, the contracted logistic company decided to increase their price as a result of unavailability of shipping containers. What should project manager do?

Answer options

• A. Assess the impact of the price increase given by the logistic company and follow the contract and global guidelines for this situation.
• B. Agree to absorb the price increase because the unavailability is beyond the control of the logistic company.
• C. Abandon the contract with the logistic company and look for another company that has not increased their prices.
• D. Explain to the logistic company that an increase in price is not acceptable because they signed a contract.

Correct answer: A

Explanation

The correct answer is A because the project manager must assess the implications of the price increase and ensure compliance with contractual obligations and guidelines. Option B is incorrect as absorbing costs is not a standard practice without assessing the impact. Option C is not advisable since it may lead to delays and further complications, while option D fails to recognize the need for contract adherence and negotiation.