Before signing the contract with the proposed vendor, concerns have been raised over future price...

Concerns about future price increases can be addressed byincluding contractual terms(B) in the agreement to limit or regulate price escalations (e.g., fixed pricing, escalation clauses, or review mechanisms). This approach balances the business units’ insistence on proceeding with the selected vendor (based on a thorough evaluation) while mitigating financial risks. According tovendor management best practices, contracts should include clear terms to protect against unforeseen cost increases, ensuring alignment with business objectives.

Ignore the business units and change vendor (A):Contradicts the evaluation process and business units’ decision, risking misalignment.

Sign the contract (C):Ignores the price increase concern, potentially exposing the organization to financial risk.

Re-tender the project (D):Unnecessary, as the vendor was selected through evaluation; contractual terms can address the concern without restarting the process.