A third-party supplier insists on payment for services. The agreement states payment will be made after the organization receives payment from the client. The supplier cannot meet payroll and warns they'll withdraw staff if not paid promptly. What should the project manager do?

The project manager should inform the client and request payment because the agreement explicitly links payment to the client's payment. This is the most ethical and contractually sound approach. The project manager acts as an intermediary, facilitating the agreed-upon payment process. Telling the client the project must be delayed is an escalation that could damage the client relationship and may not be necessary if payment can be expedited. Reassigning resources or arranging a bank loan are outside the project manager's scope of authority and responsibility, and they introduce significant financial risk to the organization without addressing the root cause of the payment terms.