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 The project manager should meet with the stakeholders to recommend the use of a time and materials (T&M) contract to address the problem, as this type of contract is more suitable for agile projects that have changing requirements and priorities. A T&M contract allows the buyer to pay the seller based on the actual hours of work and the cost of materials, rather than a fixed price. This can provide more flexibility and adaptability for the project, and reduce the risk of budget overrun. The other options are not as effective or appropriate as recommending a T&M contract. Sending a detailed status report may inform the stakeholders of the issue, but it does not propose a solution. Submitting a change request may increase the funding, but it does not address the root cause of the problem, which is the mismatch between the contract type and the project approach. Waiting until the next gate review meeting may delay the resolution of the problem, and increase the likelihood of further deviation from the EAC. References:

• PMBOK Guide, 7th edition, page 163
• PMI-PBA Exam Content Outline, 2018, page 10
• PMP question 391

The project manager should use Monitor Communications techniques to ensure that the communication needs of the project and its stakeholders are met. This involves collecting and analyzing feedback from stakeholders, reviewing the effectiveness and quality of the communication activities, and identifying and resolving communication issues. By doing so, the project manager may discover the reasons why some stakeholders are not fully comprehending the status of the project based on the reports that are being circulated, and may initiate changes to the communications management plan to address them. For example, the project manager may decide to use a different report format, frequency, or distribution method that suits the needs and preferences of the new stakeholders. Adding the issue to the issue log and determining the corrective action (option A) is a possible outcome of Monitor Communications, but not the best answer. Creating a fishbone diagram to determine the root cause for the misunderstanding (option B) is a tool that can be used in Monitor Communications, but not the only one. Sharing the communications management plan and reminding all stakeholders of the agreed-upon reporting templates (option D) is not likely to solve the problem, as it may imply that the new stakeholders are at fault for not understanding the reports, rather than acknowledging that the communication needs may have changed. References:

• PMBOK Guide, 6th edition, page 386-387, section 10.2 Manage Communications
• PMP Exam Prep, 10th edition, page 415, question 415, answer and explanation

 The project manager should consult the project team to understand the extent of the training needs for the contractor. This is consistent with the agile value of individuals and interactions over processes and tools1. The project manager should also collaborate with the contractor to provide them with the necessary guidance and coaching on the agile principles and practices2. Asking the project sponsor to replace the contractor since they do not have agile experience (A) is not a good option since it may cause unnecessary delays and costs for the project. Issuing a formal notice to the contractor to obtain an agile certification (B) is also not appropriate since it may create a sense of distrust and resentment in the contractor. Instructing the contractor to receive agile training since the project has already started (D) is not a sufficient action since it does not address the specific needs and expectations of the project team and the contractor. References:

• 1: Agile Practice Guide, Chapter 1, Section 1.2.1
• 2: Agile Practice Guide, Chapter 2, Section 2.3.2.2

 The project manager should first assess the organization’s culture, readiness, and maturity to adopt agile methods, as well as the nature and complexity of the projects. Based on this assessment, the project manager can then propose the most suitable agile practices and frameworks that can be tailored to the organization’s context and needs. This approach will help to ensure a smooth and successful transition to agile, as well as to address any potential resistance or challenges. Organizing agile workshops, requesting training, or advising the PMO manager to continue with predictive approaches are not the best ways to initiate the adoption of agile, as they do not consider the organization’s current situation and capabilities. References: 1, 2, 3

• 1: PMI. (2020). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition. Newtown Square, PA: Project Management Institute, Inc. Chapter 1, Section 1.2.3.2, p. 9.
• 2: PMI. (2020). PMP Sample Test Questions (correct answers are bolded). Retrieved from 3
• 3: PMI. (2017). Agile Practice Guide. Newtown Square, PA: Project Management Institute, Inc. Chapter 2, Section 2.1, pp. 13-14.