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NEW QUESTION # 56
Under both FIDIC Yellow Book (YB) and Silver Book (SB) (edition 1999), if the Engineer (YB) / Employer (SB) instructs the Contractor based on Sub-Clause 8.6 to provide a revised programme, the acceptance by the Engineer (YB) / Employer (SB) of a revised programme with a completion within Time of Completion entitles the Contractor to a payment of the needed extra costs. Is this statement true or false?
- A. False
- B. True
Answer: A
Explanation:
This statement is false. Acceptance of a revised programme that shows completion within the Time for Completion does not automatically entitle the Contractor to extra payment. The Contractor must demonstrate additional costs arising from the instruction or circumstances to claim payment.
The acceptance of a compliant programme is a scheduling and administrative matter, not a compensation guarantee.
References:
FIDIC Yellow and Silver Books 1999 Editions, Sub-Clause 8.6 - Revised Programme FIDIC Contract Manager Study Guide, Module on Claims and Payment
NEW QUESTION # 57
A new important feature of the FIDIC Yellow and Silver Books (edition 2017) is the inclusion of the default position that the Works or relevant part of the Works designed by the Contractor shall be fit for their ordinary purposes. Is this statement true or false?
- A. True
- B. False
Answer: A
Explanation:
This statement is true. The FIDIC Yellow and Silver Books (2017 editions) include a clear provision that the Works, or the parts designed by the Contractor, must be fit for their ordinary purposes, reflecting the Contractor's responsibility for design and performance. This introduces an express fitness-for-purpose obligation, which was less explicit in earlier editions.
This provision clarifies risk allocation related to design liability, ensuring that the Contractor is accountable for the fitness of the designed works unless otherwise specified.
References:
FIDIC Yellow and Silver Books 2017 Edition, Sub-Clause 4.1 - Contractor's General Obligations FIDIC Contract Manager Study Guide, Module on Legal Obligations and Fitness for Purpose
NEW QUESTION # 58
Giving "Notice" .... [2017 edition] (2 correct answers apply)
Choose all of the correct answers (multiple possibilities).
- A. ... is always compulsory together with a clear indication of the relevant Sub-Clause under which the Notice is being served.
- B. ... is intended for written communications, in full compliance with the formal requirements outlined in the dedicated Sub-Clause.
- C. ... is a special obligation for the Engineer only, in order to enable him/her to manage the implementation of the contract.
- D. ... is not a compulsory obligation, but "highly recommended".
Answer: A,B
Explanation:
Option B is correct: Notices are compulsory when required and must reference the relevant Sub-Clause to be valid.
Option D is correct: Notices are formal written communications and must comply with the contract's prescribed procedures.
Option A is incorrect; notices are often mandatory, not merely recommended.
Option C is incorrect; notices are obligations for all Contract Participants, not just the Engineer.
References:
FIDIC Red, Yellow, Silver Books 2017 Edition, Sub-Clause 1.3 - Communications FIDIC Contract Manager Study Guide, Module on Notices and Communication
NEW QUESTION # 59
You are the new Contract Manager of the Contractor in a bridge project using FIDIC Yellow Book (edition
2017). The project had been suspended due to a material change in the Employer ' s financial arrangement.
You have worked with your team to identify several failures of the Employer in carrying its obligations under the Contract. Which one of the following does NOT allow the Contractor to issue Notice to terminate the Contract?
- A. The Contractor has requested the Employer but has not received any evidence that the financial arrangement is being maintained, despite having sent a notice thereto 4 months earlier.
- B. The Employer failed to comply with a final and binding determination issued by the Engineer, and such failure constitutes a material breach of the Employer ' s obligations under the Contract.
- C. A prolonged suspension for more than 1 year has affected the whole of the Works.
- D. The Contractor does not receive the amount due under the latest Payment Certificate for more than 4 months after the due date.
Answer: A
Explanation:
Option C does NOT, on its own, provide grounds for termination. The Contractor's request for evidence of financial arrangement, without further contractual breach, is insufficient to terminate.
Options A, B, and D are valid grounds for termination under FIDIC Yellow Book 2017 due to prolonged suspension, non-payment beyond allowed period, or failure to comply with binding determinations.
References:
FIDIC Yellow Book 2017 Edition, Sub-Clauses 15.1 (Suspension) and 15.2 (Termination by Contractor) FIDIC Contract Manager Study Guide, Module on Suspension and Termination
NEW QUESTION # 60
Which two of the following statements are correct regarding Dispute under the FIDIC Red, Yellow, and Silver Books (edition 2017)?
Choose all of the correct answers (multiple possibilities)
- A. If a Party is dissatisfied with the determination and has given Notice of Dissatisfaction (NOD) to the other party within a strict 28-day time limit, a Dispute arises and either Party may proceed under Sub- Clause 21.4 to obtain a DAAB decision on it.
- B. In case the Engineer refuses to issue a Performance Certificate or to issue one with a correct date under Sub-Clause 11.9, and the Contractor has disagreed with the requested entitlement or relief in connection with this refusal, Dispute shall be deemed to have arisen.
- C. The Dispute must be submitted to the Dispute Avoidance and Adjudication Board (DAAB) within 42 days, otherwise the NOD is deemed to have lapsed and is no longer valid.
- D. Both 'Disagreement' and 'Dispute' are defined terms under the Conditions of Contract.
Answer: A,B
Explanation:
Option A is correct. Under Sub-Clause 11.9 (Performance Certificate) refusal or incorrect issuance by the Engineer, combined with disagreement by the Contractor, may cause a Dispute to arise.
Option B is correct. If a Party is dissatisfied with a determination, it must give a Notice of Dissatisfaction (NOD) within 28 days to escalate the matter to a Dispute, allowing either Party to refer it to the DAAB as per Sub-Clause 21.4.
Option C is incorrect. The contract does not specify a 42-day time limit for submission to DAAB after NOD; timelines vary by contract and stage.
Option D is incorrect. 'Disagreement' is not a formally defined term in FIDIC contracts, whereas 'Dispute' is.
References:
FIDIC Red, Yellow, Silver Books 2017 Edition, Sub-Clause 11.9 and Clause 21 - Claims, Disputes, and Adjudication FIDIC Contract Manager Study Guide, Module on Dispute Resolution
NEW QUESTION # 61
There are four reasons that the Employer/Contractor shall advise in advance each other and the Engineer of any known or future events or circumstances.
Which two of the following statements are NOT applicable reasons?
(Choose all correct answers - multiple possibilities)
- A. Delay the execution of the Works or a Section.
- B. Decrease the Contract Price.
- C. Adversely affect the work of the Contractor ' s Personnel.
- D. Increase the performance of the Works when completed.
Answer: B,D
Explanation:
Under the FIDIC Red Book 2017 (similar principles apply in other editions), Sub-Clause 4.1 ("Contractor's General Obligations") and Sub-Clause 3.4 ("Delay Damages") require both Employer and Contractor to notify the Engineer in advance about any events or circumstances which may delay the works or adversely affect the Contractor's personnel or progress. This early notification ensures proper management and mitigation of risks that could impact the project timeline or quality.
* Option A (Delay the execution of the Works or a Section) is a core reason for notification since delays affect the critical path and programme, requiring possible extensions or adjustments.
* Option C (Adversely affect the work of the Contractor ' s Personnel) is also a valid reason because issues affecting workforce productivity or availability can impact project delivery.
On the other hand:
* Option B (Decrease the Contract Price) is not a reason to notify. Changes in contract price usually arise from variations or claims but are not a "known or future event" requiring prior notification unless linked to a variation or compensation event.
* Option D (Increase the performance of the Works when completed) is positive and does not negatively affect project progress or cost; therefore, it is not a reason for advance notification under these contract provisions.
Thus, the two not applicable reasons are B and D.
References:
FIDIC Conditions of Contract for Construction, 2017 Edition, Sub-Clause 4.1 - Contractor's General Obligations FIDIC Conditions of Contract for Construction, 2017 Edition, Sub-Clause 3.4 - Delay Damages FIDIC Contract Manager Study Guide, Module on Communication and Reporting
NEW QUESTION # 62
In a construction project using the FIDIC Silver Book (edition 1999), if the Parties prefer the dispute board to be appointed on an "ad-hoc" basis instead of as a standing Dispute Avoidance and Adjudication Board (DAAB), what is it called? (1 correct answer applies)
- A. Ad-hoc arbitration
- B. Ad-hoc DB
- C. Ad-hoc DAAB
- D. DAB
Answer: D
Explanation:
Under FIDIC terminology, an ad-hoc Dispute Board is known as a DAB (Dispute Adjudication Board), which is appointed for specific disputes as they arise, rather than standing continuously.
The DAAB is a standing board appointed for the project duration, providing continuous dispute avoidance and adjudication.
Option D refers to arbitration, which is a different dispute resolution method.
References:
FIDIC Silver Book 1999 Edition, Clause 20 - Dispute Adjudication Board
FIDIC Contract Manager Study Guide, Module on Dispute Boards and Resolution
NEW QUESTION # 63
(Regarding the FIDIC Red Book (edition 2017): what two answers provide for requirements regarding a notice and other communication?
Choose all of the correct answers (multiple possibilities).)
- A. If the recipient ' s address differs from the address stated in the Contract Data, notices and other communications may be delivered to that other correct address.
- B. Notices and other communications shall be delivered to the address of the Contractor ' s Representative.
- C. If a form of communication does not qualify as a notice but as other communication, it must be identified as such and shall include reference of provision of Contract under which it is issued (if appropriate).
- D. If a form of communication is to qualify as a Notice, it must be identified as a notice.
Answer: C,D
Explanation:
Under FIDIC Red Book 2017, Clause 1.3 [Communications] provides strict and structured requirements governing Notices and other forms of communication. The distinction between a "Notice" and "other communication" is critical because Notices often trigger contractual rights, obligations, and time bars.
Option A is correct because Clause 1.3 expressly requires that a communication intended to be a Notice must be clearly identified as such. This ensures that both Parties understand the formal and legal significance of the communication, particularly where time-sensitive provisions (such as claims under Clause 20) are involved.
Option C is also correct. Clause 1.3 differentiates between Notices and other communications. Where a communication is not a Notice, it should still be clearly identified as another form of communication and, where appropriate, include references to the relevant contractual provision. This promotes clarity, traceability, and proper contract administration.
Option B is incorrect because communications must generally be sent to the addresses stated in the Contract Data unless formally changed by notice. Delivering to an alternative address without proper notification may render the communication invalid.
Option D is incorrect because communications are not limited to the Contractor's Representative; they must be sent to the designated addresses of the respective Parties as defined in the Contract Data.
Overall, Clause 1.3 reinforces disciplined communication management, which is a cornerstone of effective FIDIC contract administration.
NEW QUESTION # 64
The Employer has prepared a contract for a waste-to-energy project based on the FIDIC Yellow Book (edition
1999). You are preparing negotiations on behalf of one of the Subcontractors with the Contractor. The main Contractor will manage the design and build of the Works, whereby the Subcontractor will deliver critical systems regarding power generation and cooling. The Contractor intends to contract the main Contract back- to-back with the Subcontractor. In the proposed back-to-back subcontract, the following amendment is proposed through Particular Conditions:
" Sub-Clause 4.4. The following paragraph is added: The Subcontractor is required to scrutinize the Employer
' s Requirements in a manner identical to the obligations of the Contractor as stated in Sub-Clause 5.1 of the Main Contract. The Subcontractor will indemnify and hold harmless (up to the maximum liability of the Subcontractor) the Contractor with regard to any error, fault or other defect found in the Employer ' s Requirements, its items of reference or Contractor ' s design of the Works for the scope part for which Subcontractor is contracted. " What is your advice to the Subcontractor (SC) in regard to entering this proposed subcontract?
- A. I would advise the SC not to enter this contract because the Contractor is obliged to act in accordance with good faith. A proposed paragraph like this opposes good faith.
- B. I would advise the SC not to enter this contract, because Sub-Clause 4.4 describes the obligations of SC towards Contractor, but this amendment positions the SC in a vulnerable position for claims regarding all errors, faults or other Defects (whether originating from the Employer ' s Requirements or the design of the Contractor). Essentially, this means the SC becomes liable for the design part, which is within the scope of Contractor even without SC having the opportunity to review it.
- C. I would advise the SC to discuss this amendment with the insurance company just to be sure there will be no transfer of risks. This amendment is mainly a consequence of the FIDIC Yellow Book structure, where the Contractor has obligations in terms of scrutinizing the Employer ' s Requirements. This amendment makes this obligation more explicit. If the insurance company has no problems with insuring the parts which will be delivered by SC to Contractor, the SC can accept this risk and enter into the subcontract.
- D. I would advise the SC to enter the Contract with the request to the Contractor to delete this amendment in the Particular Conditions. If the Contractor does not agree to do so, at least the Subcontractor has tried its best.
Answer: B
Explanation:
In FIDIC Yellow Book (1999), the Contractor is responsible for scrutinizing the Employer ' s Requirements per Sub-Clause 5.1 and must notify any discrepancies or errors. However, passing this obligation to a Subcontractor, and requiring the Subcontractor to indemnify the Contractor for errors or defects arising from the Employer ' s Requirements or the Contractor ' s design, unfairly shifts risk and liability to the Subcontractor. The Subcontractor is likely not in a position to fully review or control the Employer's Requirements or the overall Contractor's design. This exposes the Subcontractor to excessive risk, beyond their scope and capacity.
Advice C highlights that the Subcontractor becomes vulnerable to claims for design defects outside their control. This misallocation of risk is generally not recommended and can be challenged during contract negotiation. Good contract management practice and risk allocation principles (FIDIC Contract Manager Study Guide, Module on Claims and Dispute Resolution) support this position.
While Options A, B, and D propose different approaches, only C correctly identifies the fundamental contractual and risk management issue that should prevent the Subcontractor from entering the contract as is.
References:
FIDIC Yellow Book 1999, Sub-Clause 5.1 - Contractor's General Obligations FIDIC Contract Manager Study Guide, Module on Claims and Dispute Resolution FIDIC Contract Manager Study Guide, Module on Risk Management
NEW QUESTION # 65
(Upon review of the revised programme, submitted by the Contractor, if the Engineer (under FIDIC Red or Yellow Books) or Employer (under FIDIC Silver Book) does not give a Notice of Non-Compliance within 14 days after receiving a revised programme, then... [complete the sentence, thereby considering FIDIC Red, Yellow, and Silver Books (edition 2017)]. (1 correct answer applies))
- A. The Contractor shall submit a Notice to the Engineer or the Employer reminding him to give its approval on the revised programme.
- B. The Contractor cannot proceed in accordance with the Programme.
- C. The Engineer is deemed to have no objection to use the revised Programme for the Works.
- D. The Engineer shall be deemed to have given a Consent and the revised programme shall be the Programme.
Answer: D
Explanation:
Under FIDIC 2017, Sub-Clause 8.3 [Programme] introduces a clearer and more structured mechanism for the review and acceptance of the Contractor's Programme. When the Contractor submits a revised programme, the Engineer (or Employer in the Silver Book) has a defined period-typically 14 days-to review it and issue a Notice of Non-Compliance if the programme does not meet contractual requirements.
If no such notice is issued within this timeframe, the contract provides a "deemed acceptance" (deemed consent) mechanism. This means that the Engineer is considered to have accepted the revised programme, and it becomes the operative Programme for the Works.
Option B correctly reflects this concept. It ensures continuity of project execution and prevents administrative delays caused by inaction. This is aligned with FIDIC 2017's emphasis on efficiency, proactive management, and avoidance of bottlenecks.
Option D is incorrect because "no objection" is weaker than "deemed consent." FIDIC explicitly uses the concept of consent, not merely absence of objection. Options A and C contradict the contract's intent of maintaining workflow.
Thus, the clause ensures that lack of response does not hinder progress, reinforcing disciplined contract administration.
NEW QUESTION # 66
Under the FIDIC Silver Contract (edition 2017), which two of the answers provide for preconditions for certification and payment of the Interim Payment Certificate?
Choose all of the correct answers (multiple possibilities).
- A. The appointment of the Contractor and receipt of the Advance Payment Guarantee, by the Employer, in the form, and issued by an entity, in accordance with Sub-Clause 14.2.1.
- B. Receipt of a statement via a letter showing the amounts to which the Contractor considers itself to be entitled.
- C. The appointment of the Contractor's Representative and receipt of the Performance Security, by the Employer, in the form, and issued by an entity, in accordance with Sub-Clause 4.2.1.
- D. Receipt of a statement and supporting documents.
Answer: A,D
Explanation:
Comprehensive and Detailed Explanation:
Option A is correct: Certification and payment of interim payments are conditional on Employer's receipt of the Contractor's appointment and the Advance Payment Guarantee (Sub-Clause 14.2.1).
Option D is correct: Payment also requires receipt of the Contractor's statement supported by relevant documentation.
Option B alone is insufficient without supporting documents.
Option C relates to appointment and performance security but is not a stated precondition for payment certification.
References:
FIDIC Silver Book 2017 Edition, Sub-Clause 14.6 - Interim Payment Certificates FIDIC Contract Manager Study Guide, Module on Payment Procedures
NEW QUESTION # 67
In the FIDIC Silver Book (edition 1999), if the Employer has instructed the Contractor as per Sub-Clause 8.6 to provide a revised programme to stay within Time of Completion, the Employer can claim additional costs.
This only applies if the revised programme is still too slow to complete the Works within the Time for Completion. Is this statement true or false?
- A. True
- B. False
Answer: A
Explanation:
This statement is true. Under FIDIC Silver Book 1999, Sub-Clause 8.6, the Employer can instruct the Contractor to submit a revised programme to meet the contractual Time for Completion. If, after such instruction, the revised programme still shows the Works will not complete on time, the Employer may claim additional costs (such as delay damages or compensation) due to continued delay.
Thus, the Employer's right to claim additional costs is contingent on the revised programme not enabling timely completion.
References:
FIDIC Silver Book 1999 Edition, Sub-Clause 8.6 - Revised Programme
FIDIC Contract Manager Study Guide, Module on Claims and Delay Damages
NEW QUESTION # 68
Both FIDIC Silver Book (SB) and Yellow Book (YB) (edition 1999) mention the Contractor scrutinising the Employer's Requirements. Which statement is correct?
- A. Scrutinising in FIDIC Yellow Book 1999 means that the Contractor has the opportunity after contract close to report on any errors, mistakes or conflicts in the Employer's Requirements. In the FIDIC Silver Book 1999 scrutinising provides that obligation during the tender period; Contractor has the opportunity to report on any errors, mistakes or conflicts in the Employer's Requirements and for Employer to change it; for after contract closes this is not a duty anymore of Employer.
- B. Scrutinising in FIDIC Yellow Book 1999 means the same as in FIDIC Silver Book 1999. In both models it means that after the contract closes and before starting the actual making of the design, the Contractor has to read the Employer's Requirements very thoroughly and check on any errors, omissions or conflicts.
- C. Scrutinising in FIDIC Silver Book 1999 means that the Contractor should read the Employer's Requirements very thoroughly after the contract closes and see if the Employer's Requirements is complete or if something is missing.
- D. Scrutinising in FIDIC Yellow Book 1999 and Silver Book 1999 means that the Contractor must ask the Employer to check the Employer's Requirements very well to see if the Works can be built on that location according to the Employer's Requirements.
Answer: A
Explanation:
mprehensive and Detailed Explanation:
Option D correctly captures the difference between Yellow and Silver Books (1999):
In the Yellow Book, the Contractor may raise concerns after contract close.
In the Silver Book, the Contractor must scrutinize and report on Employer's Requirements during the tender period, and after contract close this duty lapses.
Other options misunderstand timing or scope of scrutiny.
References:
FIDIC Yellow and Silver Books 1999 Editions, Sub-Clause 4.1 - Contractor's General Obligations FIDIC Contract Manager Study Guide, Module on Employer's Requirements and Scrutiny
NEW QUESTION # 69
(For specific probable future events or circumstances which may adversely affect the Works, FIDIC Red and Yellow Books (edition 1999) provide a duty to notify specific parties. Which two statements are correct?
Choose all of the correct answers (multiple possibilities).)
- A. The obligation to issue such Notice requires the Contractor to give such Notice to the Engineer.
- B. Each Party shall advise the other and the Engineer of such events or circumstances, and the Engineer shall advise the Parties.
- C. The Notice shall be given when the Time for Completion will be affected.
- D. The Engineer has no obligation under General Conditions to notify the Contractor of such events.
Answer: A,B
Explanation:
Under FIDIC Red and Yellow Books 1999, Sub-Clause 8.3 [Programme] includes an important obligation related to early warning. It requires both Parties to proactively notify each other and the Engineer of any probable future events or circumstances that may adversely affect the Works, including delays, increased cost, or performance issues.
Option B is correct because the clause clearly establishes a mutual obligation: both Parties must inform each other and the Engineer, and the Engineer must also inform the Parties. This ensures transparency and enables proactive mitigation of risks.
Option D is also correct. The Contractor has a specific obligation to notify the Engineer of such events. This aligns with the Contractor's responsibility for planning and executing the Works and maintaining an updated programme.
Option A is incorrect because the obligation arises before the Time for Completion is actually affected-it is about anticipated or probable events, not confirmed impacts.
Option C is incorrect because the Engineer does have a role in communication and must advise the Parties accordingly.
This early warning mechanism is a key feature of FIDIC contracts, promoting risk management, cooperation, and prevention of disputes rather than reactive claims handling.
NEW QUESTION # 70
For the FIDIC Red Book (both editions), the Contractor is required to submit a progress report monthly.
When does the Contractor's reporting requirement end?
- A. After issuance of the Performance Certificate.
- B. Until all outstanding works as stated in the Taking-Over Certificate are completed.
- C. At the Date of Completion of the Works (irrespective of whether there is minor outstanding work to be performed).
- D. After issuance of the Taking-Over Certificate.
Answer: B
Explanation:
The Contractor's obligation to submit progress reports continues until all outstanding work identified in the Taking-Over Certificate has been completed. The Taking-Over Certificate signals substantial completion but may allow for outstanding minor works. Reporting is essential to monitor progress on these outstanding works.
The Performance Certificate relates to final contract completion but reporting usually ends earlier only after all works are completed.
Therefore, Option D is correct.
References:
FIDIC Red Book 1999 & 2017 Editions, Sub-Clause 4.21 - Progress Reports FIDIC Contract Manager Study Guide, Module on Communication and Reporting
NEW QUESTION # 71
Which two statements are correct regarding the FIDIC Red Book (edition 2017)?
- A. There is never a difference in effect whether in the Particular Conditions when the term " Works " is used, or when the term " works " is used.
- B. Contract Data contains information which is required by certain Sub-Clauses in the General Conditions.
- C. Words and expressions stated in Sub-Clause 1.1 Definitions do not apply in respect of Specifications and Drawings.
- D. In some cases, if a certain information is not provided in the Contract Data, the relevant Sub-Clause shall not be applicable.
Answer: B,D
Explanation:
Option B is correct: The Contract Data provides information required by specific Sub-Clauses in the General Conditions to complete the contract.
Option D is correct: If required data is missing in the Contract Data, some Sub-Clauses may not apply.
Option A is incorrect; definitions generally apply throughout the contract including Specifications and Drawings.
Option C is incorrect; case sensitivity of terms can affect contractual meaning.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 1.1 - Definitions and Contract Data FIDIC Contract Manager Study Guide, Module on Contract Documents
NEW QUESTION # 72
(During the execution of certain Works under a FIDIC Yellow Book (edition 1999), a Contract in a historical area along the silk route, one of the workers discovers a possible ancient treasure on the Site. The supervisor stops the Works, secures the Site, and informs the Engineer. How should the Engineer react?)
- A. You instruct the supervisor to cover the finding and resume the Works immediately, and make a determination later.
- B. You inform the supervisor that a formal written notice under Sub-Clause 4.24 is required and no further instruction can be given until then.
- C. You compliment the supervisor and ask him to excavate further and personally deliver the treasure to a university. No extension of time is granted.
- D. You thank the supervisor, secure the Site, instruct guarding measures, inform the Employer and authorities, and issue a Variation to cover the costs of protection measures.
Answer: D
Explanation:
This situation is governed by Sub-Clause 4.24 [Fossils] of the FIDIC Yellow Book 1999. According to this clause, all fossils, coins, articles of value, antiquities, and structures of geological or archaeological interest discovered on the Site are considered the property of the Employer. The Contractor is required to take reasonable precautions to prevent removal or damage and must immediately notify the Engineer upon discovery.
In this scenario, the supervisor has acted correctly by stopping the Works, securing the Site, and informing the Engineer. The Engineer's responsibility is then to take control of the situation in accordance with contractual and legal obligations. This includes ensuring the Site remains secure, instructing the Contractor to provide guards or protective measures, and notifying the Employer and relevant local authorities. Since these actions may cause delay and incur additional cost, the Engineer should formalize instructions through a Variation under Clause 13, allowing the Contractor to be compensated for such measures.
Option A is incorrect because it violates ownership rights and proper procedures. Option C is wrong because the Engineer is not prevented from acting pending formal notice-immediate action is required. Option D is incorrect because it disregards the importance of preserving archaeological findings and breaches Sub-Clause
4.24 obligations.
Thus, Option B fully aligns with FIDIC risk allocation, procedural compliance, and the Engineer's duty to administer the Contract properly.
NEW QUESTION # 73
Under the FIDIC Red and Yellow Books (edition 1999), which two of the following statements are correct regarding the issuance of Interim Payment by the Engineer?
(Choose all correct answers - multiple possibilities)
- A. The Employer is not bound by the Certificate issued by the Engineer.
- B. The Employer is bound by the Certificate issued by the Engineer, and must make payment in full, except for any compensation arising from any claim which the Employer may have against the Contractor.
- C. The Employer is bound by the Certificate issued by the Engineer and must make payment in full, irrespective of any entitlement to compensation arising from any claim which the Employer may have against the Contractor.
- D. If the Employer considers itself entitled to claim against the Contractor, notice and particulars must first be submitted under Sub-Clause 2.5. The Employer's entitlement is then to be agreed or determined by the Engineer, and then, incorporated as a deduction in a Payment Certificate.
Answer: B,D
Explanation:
Under the FIDIC Red Book and Yellow Book, 1999 editions, the Engineer issues Interim Payment Certificates certifying the amounts due to the Contractor for completed works and materials on site (Sub- Clause 14.6). The Employer is generally bound by the Payment Certificate and must pay accordingly, except where there is a lawful set-off or compensation claim against the Contractor.
Option A is correct because the Employer must pay the amount certified except for compensation claims that may be offset against the payment (Sub-Clause 14.6).
Option D is also correct: If the Employer intends to claim against the Contractor (e.g., for damages or defects), it must notify the Contractor under Sub-Clause 2.5 and provide particulars. The Engineer then assesses and decides on the claim and incorporates any agreed deductions into the Payment Certificate.
Option B is incorrect because the Employer is indeed bound by the Payment Certificate unless lawful deductions or disputes arise.
Option C is incorrect as the Employer can withhold amounts due for compensation claims once these are properly notified and substantiated.
References:
FIDIC Red and Yellow Books, 1999 Edition, Sub-Clause 14.6 - Interim Payments FIDIC Red and Yellow Books, 1999 Edition, Sub-Clause 2.5 - Employer's Claims FIDIC Contract Manager Study Guide, Module on Payment Procedures and Financial Management
NEW QUESTION # 74
(In a FIDIC Red Book, the Employer shall have prepared (or have prepared by a design consultant) all the design for the Works. Which of the listed documents form the basis for this design (2 correct answers apply))
- A. The form of Contract Agreement
- B. The Breakdown of Lump-Sum
- C. Schedule of Subcontractors
- D. The Bill of Quantities
- E. The Specifications
Answer: D,E
Explanation:
Under the FIDIC Red Book (both 1999 and 2017 editions), the Employer is responsible for the design of the Works. This design is primarily communicated to the Contractor through key technical documents included in the Contract.
Option B (Specifications) is correct because Specifications define the technical requirements, standards, materials, workmanship, and performance criteria. They are a core component of the design documentation and directly guide how the Works are to be executed.
Option A (Bill of Quantities) is also correct. While primarily used for measurement and payment, the Bill of Quantities is derived from the design and reflects the quantified scope of the Works. It is intrinsically linked to the design and provides a structured breakdown of the elements required to construct the Works.
Option C is incorrect because the Breakdown of Lump-Sum is relevant to lump-sum contracts (e.g., Silver Book), not the Red Book's remeasurement approach.
Option D is incorrect as the Schedule of Subcontractors relates to execution planning, not design.
Option E is incorrect because the Contract Agreement is a legal document formalizing the contract, not a design document.
Thus, in Red Book contracts, the design basis is fundamentally established through the Specifications and the Bill of Quantities, supported typically by Drawings (though not listed here).
NEW QUESTION # 75
Which two statements are true under the FIDIC Red Book (edition 1999)?
(Choose all of the correct answers - multiple possibilities)
- A. The Performance Certificate constitutes acceptance of the Works and full performance of all obligations of each Party.
- B. The Performance Certificate is deemed to constitute the acceptance of the Works.
- C. The Performance Certificate is deemed to be issued on fulfilment of certain conditions stated in the respective Sub-Clause.
- D. The Engineer shall issue the Performance Certificate within 28 days at the latest: by the end of the Defects Notification Periods, and once the Contractor has supplied all the Contractor's Documents and completed and tested all Works including remedying any defects in accordance with the Contract.
Answer: C,D
Explanation:
Under the FIDIC Red Book 1999, the Performance Certificate marks the end of the Contractor's obligations under the contract (Sub-Clause 11.9). The Engineer must issue this certificate once the Defects Notification Period has ended, all Contractor's Documents are submitted, and all works including defect rectification have been completed and tested.
Option C is correct because the Engineer is required to issue the Performance Certificate within 28 days after these conditions are met.
Option D is correct as the certificate is conditional upon fulfilling specific contract requirements (e.g., completion of works, submission of documents).
Option A is incorrect because acceptance of works usually happens earlier (e.g., taking-over certificate); the Performance Certificate represents completion of all contractual obligations, not just acceptance.
Option B is incorrect as the Performance Certificate confirms contractual completion but does not necessarily imply full mutual performance beyond contract terms.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 11.9 - Performance Certificate
FIDIC Contract Manager Study Guide, Module on Project Close-Out and Final Account
NEW QUESTION # 76
Which of the following situations form legally binding contracts? (2 correct answers apply) Choose all of the correct answers (multiple possibilities)
- A. The Employer and the Contractor signed the Contract Agreement.
- B. The Employer received the Contractor's Letter of Tender and issued a conditional Letter of Acceptance.
- C. The Employer received the Contractor's Letter of Tender and issued Letter of Acceptance.
- D. The Employer received the Contractor's Letter of Tender and issued a Letter of Intent.
Answer: A,C
Explanation:
A legally binding contract is typically formed when there is an offer, acceptance, and intention to create legal relations. Under FIDIC contracts:
Option B (signing the Contract Agreement) unequivocally forms a binding contract.
Option D (Letter of Acceptance issued after receiving the Contractor's Letter of Tender) generally forms a binding contract unless otherwise specified, as the Letter of Acceptance is the formal acceptance of the tender.
Option A (Letter of Intent) is not necessarily a binding contract; it often serves as an interim arrangement signaling intent but may lack definitive terms to form a contract.
Option C (conditional Letter of Acceptance) may not form a binding contract unless the conditions are fulfilled.
References:
FIDIC Red and Yellow Books 1999 and 2017 Editions - Contract Formation Clauses FIDIC Contract Manager Study Guide, Module on Contract Formation and Execution
NEW QUESTION # 77
Under the FIDIC Silver Contract (edition 2017), which two of the answers provide for preconditions for certification and payment of the Interim Payment Certificate?
Choose all of the correct answers (multiple possibilities).
- A. The appointment of the Contractor and receipt of the Advance Payment Guarantee, by the Employer, in the form, and issued by an entity, in accordance with Sub-Clause 14.2.1.
- B. Receipt of a statement via a letter showing the amounts to which the Contractor considers itself to be entitled.
- C. The appointment of the Contractor ' s Representative and receipt of the Performance Security, by the Employer, in the form, and issued by an entity, in accordance with Sub-Clause 4.2.1.
- D. Receipt of a statement and supporting documents.
Answer: A,D
Explanation:
Option A is correct: Certification and payment of interim payments are conditional on Employer's receipt of the Contractor's appointment and the Advance Payment Guarantee (Sub-Clause 14.2.1).
Option D is correct: Payment also requires receipt of the Contractor's statement supported by relevant documentation.
Option B alone is insufficient without supporting documents.
Option C relates to appointment and performance security but is not a stated precondition for payment certification.
References:
FIDIC Silver Book 2017 Edition, Sub-Clause 14.6 - Interim Payment Certificates FIDIC Contract Manager Study Guide, Module on Payment Procedures
NEW QUESTION # 78
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