During a project negotiation with a vendor, the vendor states they cannot meet the required delivery date without a 20% cost increase. The project budget is fixed, but the schedule has some flexibility. What is the BEST negotiation strategy for the project manager?

Answer options:

Demand the vendor meet the original terms or threaten to cancel the contract.

Accept the cost increase and submit a change request for additional budget.

Collaborate to trade the schedule flexibility for the fixed cost constraint.

Reduce the scope of the deliverable to meet both cost and schedule targets.

How to approach this question

Identify the constraints (Fixed Cost) and the flexibility (Schedule). Use the flexible constraint to protect the fixed one.

Full Answer

C.Collaborate to trade the schedule flexibility for the fixed cost constraint.✓ Correct

The PM must analyze the bounds of the negotiation (Task 8). With a fixed budget and flexible schedule, the optimal strategy is to offer more time in exchange for keeping the price flat.

Common mistakes

Choosing B (Ignoring constraints) or D (Premature scope reduction).

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