During the execution phase of a project, a vendor is consistently missing delivery deadlines, affecting the project timeline. As the project manager, what is the BEST action to take to enforce the vendor's rules of engagement?
Initiate a formal performance review with the vendor to address the delays.
Replace the vendor with a new one who can meet the schedule.
Allow the vendor more time to deliver to avoid conflict.
Report the vendor's non-compliance to upper management before communicating with the vendor.
Initiating a formal performance review with the vendor is the best action. This approach addresses the issue directly by identifying the causes of the delays and setting expectations for improvement, reinforcing the contractual obligations. Replacing the vendor can introduce new risks and further delays due to onboarding a new vendor. Allowing more time without addressing the underlying issues does not enforce the contract terms and may harm the project's success. Reporting to upper management before communicating with the vendor bypasses proper communication channels and may escalate the situation unnecessarily.
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What is a formal performance review in project management?
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Why is direct communication with the vendor important before escalating to upper management?