Managers (of people and projects) are often called upon to make tough choices. Should we invest in this technology, or that? Should we hire this person, or that person? Should we focus our efforts on this market, or that one? Because so much of a manager’s work is a zero-sum game, it’s no wonder many develop binary thinking and see many choices as trade-offs.
Your question presents a tough binary choice between two different values: should you be respectful of your team member by not calling him out, or should you be honest about the missed deadlines? Respect, or candor? Which do you choose?