A mid-size capital project uses shared resources from the company's contracts department. During execution, contracting is delayed because the contracts team is prioritizing other work. What should the project manager do first?

The project manager should first arrange a meeting with the contracts department to build trust and commitment. This approach emphasizes collaboration and understanding, which is crucial for resolving resource conflicts. Acknowledging their critical support can foster a more cooperative environment and open a dialogue to find a mutually beneficial solution. Reporting to higher management prematurely (first option) can escalate the issue unnecessarily and damage relationships. Demanding prioritization (third option) is confrontational and unlikely to yield positive results. Asking the contracts manager to allocate budget (fourth option) is not the immediate solution to a prioritization issue and might not be within their authority or the project's scope.