While executing a commercial building project, the project manager discovers required building permits were not obtained. Obtaining the permits will delay the project by one month and cost US$35,000. The fine for continuing construction without the permits is US$1,000 per day. What should the project manager do first?

The project manager should first obtain the permits before continuing the build. Continuing construction without the required permits is illegal and unethical, exposing the project and organization to significant legal liabilities, fines (US$1,000 per day), and reputational damage. Although obtaining the permits will cause a one-month delay and cost US$35,000, this is a necessary and responsible action to ensure compliance and avoid much larger potential penalties and risks. Continuing construction while attempting to obtain the permit still carries significant legal and financial risks. Updating the risk management plan and reviewing lessons learned are important steps, but they are secondary to immediately addressing the non-compliance issue.