Your project is in the execution phase, and you discover that a key vendor will deliver a critical component two weeks late, impacting the critical path. The contract does not include penalties for late delivery. What should you do first?
Upon discovering a vendor delay, the project manager's immediate priority is to conduct a thorough impact analysis on the project schedule, cost, and scope baselines. This evaluation helps quantify the deviation and informs the decision-making process. Subsequently, exploring schedule compression techniques such as fast-tracking (performing activities in parallel that were originally sequential) or crashing (adding resources to shorten duration at increased cost) is a proactive strategy to mitigate the delay and keep the project on track, aligning with the 'Perform Integrated Change Control' process.
Why this answer
The first step when a vendor delay occurs is to analyze its impact on the project schedule and explore compression techniques (fast-tracking or crashing) to mitigate the delay. Option A is wrong because escalating to senior management without first assessing the impact and options is premature. Option C is wrong because enforcing penalty clauses is not possible if the contract doesn't include them, and even if it did, it would not be the immediate action.
Option D is wrong because accepting the delay without analysis is not proactive project management.