There are strong reasons for the Project Manager to terminate the existing contract and re-negotiate the terms and conditions. As the earlier contract was cost reimbursable, the Project Manager had limited information on the contract scope of work. It may not be true now since some work has been done, and the Project Manager is in a better position to negotiate. Also, since there are too many change requests with no clarity on how many of them would be approved, it is difficult for the Project Manager to continue work. The best option for the Project Manager in this case is Option A,.