A project team is implementing an enterprise notification tool with a vendor. The project manager noticed the vendor's developer had been reporting the same status for several weeks. A few days later the vendor reports the deliverable will be late due to resource constraints. What should the project manager do next?

The project manager should first address the immediate problem by adding the delay to the issue log. This formalizes the problem and initiates the process for resolution. Working with the vendor directly to find a solution is the most proactive and collaborative approach to get the schedule back on track. Updating the risk register is premature; this is an issue, not a potential future event. Escalating to management or the sponsor should occur only if direct resolution efforts fail. Reviewing the contract for penalties is a reactive and potentially adversarial step that should be considered only after attempts at collaborative problem-solving have been exhausted.