On a time-and-materials hybrid project with monthly incremental releases, the client asked after two months to change direction. The project manager met face-to-face and clarified the new desired milestones. What should the project manager do first?

The project manager should first record the meeting discussion in the minutes and distribute them to stakeholders. This ensures that the new desired milestones are formally documented and communicated to all relevant parties, establishing a clear record of the conversation and initial understanding. This step is crucial for transparency and alignment before proceeding with any formal changes. Drafting a contract change or submitting a formal change request (options A and B) would be premature without first documenting the discussion. Completing the current release as planned (option C) might be necessary, but documenting the new direction takes precedence to ensure future work aligns with the client's updated needs.