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