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A seller is awarded a contract to build a pipeline. The contract terms and conditions require a work plan be issued for the buyer’s approval prior to commencing work, but the seller fails to provide one. Which is the BEST thing for the buyer’s project manager to do?
a) File a letter of intent
b) Develop the work plan and issue it to the seller to move things along
c) Issue a default letter
d) Issue a stop work order to the seller until a work plan is preparedThe correct answer is C.
Any time that a seller does not perform according to the contract, the project manager must take action. The preferred choice might be to contact the seller and ask what is going on, but that choice is not available here. Therefore, the best choice is to let him know he is in default (choice C).
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