Implementing Contingency Plan When Vendor Fails to Deliver
Your project is in the middle of execution when a key vendor informs you that they will be unable to deliver a critical component on time due to a raw material shortage. The component is on the critical path. The risk was identified and logged in the risk register with a mitigation plan. What should you do FIRST?
Quick Answer
The answer is to implement the contingency plan documented in the risk register. This is correct because the risk was already identified, assessed, and logged in the risk register with a pre-defined response; when the trigger—the vendor’s inability to deliver—occurs, the project manager must execute the agreed-upon contingency plan without delay, especially since the component is on the critical path and any delay threatens the project schedule. On the PMP exam, this scenario tests your understanding of the “Implement Risk Responses” process and the distinction between contingency plans (for identified risks) and workarounds (for unidentified risks). A common trap is to jump into replanning or escalating, but the correct first step is always to follow the documented plan. Memory tip: “If it’s in the register, execute the plan; if it’s a surprise, create a workaround.”
⚠ Common exam trap
Test-takers frequently choose to escalate to the sponsor or seek a schedule extension immediately, forgetting that a pre-planned contingency response should be executed first before considering schedule changes or alternative vendors.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Implement the contingency plan documented in the risk register
The risk was already identified and logged in the risk register with a documented mitigation plan. Since the component is on the critical path and the risk has materialized, the first action is to implement the pre-approved contingency plan to minimize schedule impact. This aligns with the PMBOK Guide's guidance on executing risk responses as the immediate step when a risk occurs.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Implement the contingency plan documented in the risk register
Why this is correct
The risk register contains pre-approved response plans; implementing it is the correct first step.
- ✗
Ask the vendor to expedite the delivery at no extra cost
Why it's wrong here
While negotiation is possible, the immediate step is to activate the contingency plan.
- ✗
Immediately source an alternative vendor without formal approval
Why it's wrong here
Sourcing without approval bypasses procurement processes and may violate contracts.
- ✗
Notify the sponsor and request a schedule extension
Why it's wrong here
Notifying stakeholders is important but implementing the contingency plan takes precedence.
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Same concept, more angles
1 more way this is tested on PMP
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your project is in execution phase, and a key vendor informs you that they will be unable to deliver a critical component on time due to a supply chain disruption. This risk was identified in the risk register and a contingency plan was developed. The project timeline is tight, and any delay will impact the critical path. What should you do FIRST?
hard- A.Immediately find an alternative vendor who can deliver on time
- ✓ B.Implement the contingency plan as documented in the risk register and communicate with stakeholders
- C.Re-baseline the project schedule to accommodate the delay
- D.Alert the project sponsor about the delay and ask for additional time
Why B: The risk was already identified and a contingency plan exists in the risk register. The first action should be to implement that plan, as it was pre-approved for this exact scenario. Communicating with stakeholders is also essential to manage expectations and coordinate next steps, especially since the delay impacts the critical path.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PMP practice question is part of Courseiva's free PMI certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PMP exam.