A newly assigned project has a fixed-price contract specifying scope and final delivery date, but the project manager identified internal constraints that will likely prevent completion in the planned number of iterations. What should the project manager do next?

The project manager has identified a potential risk (internal constraints preventing timely completion) that could impact the fixed-price contract's delivery date. Developing a contingency plan is the appropriate next step to proactively address this risk. A contingency plan outlines actions to be taken if a specific risk event occurs, allowing the project to adapt and mitigate negative impacts. Creating an issue log template is premature; the identified item is a potential future problem, not a current issue. Developing a schedule management plan is part of overall planning, but the immediate concern is the identified constraint, which requires a specific risk response. Creating an assumption log is for documenting assumptions, not for directly addressing identified constraints or their impact on project value in this scenario.