As an external vendor, you are managing a complex software project on a time-and-materials (T&M) contract. One of your team members reports a breakthrough in automating some of the testing activities. This may result in cost savings to the project and completion of the project one month ahead of schedule. Which of the following actions would you take?

This is confidential information within your project team and there is no need to share with the customer. The savings will be additional profits on the project.

Communicate the current status and inform the customer you will incorporate some additional features to use up the savings in cost and time since it was budgeted.

Communicate the current status to the customer and indicate the potential changes to cost and schedule.

Communicate the savings in cost and time to the customer. At the end of the project, notify your billing department that they need to prepare an invoice for 50 percent of the cost saved.