Question: You are the project manager for a project that is well underway. You are using a contractor that has agreed to a fixed-price contract that

You are the project manager for a project that is well underway. You are using a contractor that has agreed to a fixed-price contract that calls for a single, lump sum payment on completion of the contract. The contractor’s project manager contacts you and informs you that cash flow problems are making it difficult for the contractor to pay employees and subcontractors. The contractor then asks you for a partial payment for work accomplished to date. What is your best course of action?

A: Make no payments to the contractor until all the work is completed as per the terms of the agreed contract.

B: Negotiate a change to the contract to allow payments to the contractor.

C: Pay for work accomplished to date.

D: Start making partial payments to the contractor.

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