During implementation, a team discovers a key deliverable was not included in the budget. What should the project manager do first?

The project manager's first step should be to meet with the team to discuss alternatives. This collaborative approach leverages the team's expertise to identify potential solutions, such as re-prioritizing tasks, finding cost-effective methods, or adjusting the scope. This is a proactive problem-solving step that can often resolve issues internally without immediate escalation. Escalating to the sponsor (option A) is premature; the project manager should first attempt to resolve the issue at the team level. Holding the team accountable (option B) is counterproductive and damages morale, as the issue likely stems from planning, not team negligence. Removing the deliverable (option D) is a drastic measure that should only be considered after exploring all other options and assessing its impact on project objectives.