Question

A project manager is administering a fixed-price contract with a supplier for a specialized subsystem. During routine procurement administration, the PM notices the vendor has submitted an invoice for a milestone payment, but the corresponding deliverable acceptance record in the project artifacts shows the milestone has not yet been formally accepted by the technical team. What should the PM do FIRST?

Accepted Answer

Review the contract terms and the deliverable acceptance criteria before authorizing any payment

Answer

Approve the invoice to preserve the vendor relationship, since fixed-price milestones are prenegotiated

Answer

Escalate the discrepancy to the change control board for a formal contract modification

Answer

Reject the invoice and issue a claim notice to the vendor for premature billing