In the context of virtual teams, it is essential for the project manager to actively manage communication and coordination issues. The PMBOK Guide and PMI's resources on virtual teams emphasize the importance of addressing issues of cultural and personal diversity, communication, and coordination1. This includes reassessing the situation continually to identify and remove blockers that prevent effective communication and collaboration2. Implementing KPIs can be part of this process, but it is not a solution by itself if the underlying communication issues are not resolved. Terminating the contract or asking the contractor to solve the problem without the project manager's involvement does not align with the proactive and engaged management approach recommended by PMI. References: Managing Virtual Teams for High Performance - Project Management Institute; Managing a Virtual Project Team - Project Times12.