Pass the FIDIC Contract Manager CCM Questions and answers with CertsForce

Option A is correct: The Employer may sell or dispose of any items left by the Contractor and reinstate the Site, recovering costs from the Contractor.

Option C is correct: The Employer is entitled to recover costs for clearing, reinstatement, and disposal exceeding proceeds from sale.

Option B is incorrect; the Engineer does not hold this authority, but the Employer does under the contract.

Option D is incorrect; if the Contractor fails to clear the Site, the Employer may take action to protect the Site.

Option B is correct: Deleting critical dispute resolution Sub-Clauses 20.2 - 20.4 contradicts the Golden Principles by undermining fair dispute handling.

Option D is correct: Extending payment release to 180 days violates timely payment principles and fairness in cash flow management.

Option A is generally acceptable as the Contractor often assumes responsibility for nominated subcontractors.

Option C is acceptable in some jurisdictions and contracts to provide finality but can be debated.

The key requirement in this scenario is certainty of cost and time, particularly because the Employer intends to secure financing from a financial institution. Lenders typically require a high degree of predictability regarding project completion date and final contract price.

The FIDIC Silver Book 2017 (EPC/Turnkey Contract) is specifically designed for such situations. Under this form, the Contractor assumes full responsibility for both design and construction, as well as a significant portion of project risks, including many that would otherwise remain with the Employer under other FIDIC forms. This results in a lump-sum, fixed-price contract with greater certainty in final cost and schedule.

In contrast, the Red Book allocates design responsibility to the Employer and allows for more variability due to remeasurement and variations, making cost less predictable. The Yellow Book, although design-build, still allows more balanced risk sharing and potential adjustments, which can reduce price certainty compared to the Silver Book.

From a contract management perspective, the Silver Book is commonly used for privately financed infrastructure or projects requiring strong lender confidence, as it minimizes Employer risk and enhances bankability.

Therefore, for a hospital project requiring financial backing and maximum certainty in cost and time, the Silver Book is the most appropriate choice.

Under the FIDIC Silver Book 1999 (Conditions of Contract for EPC/Turnkey Projects), the Employer must specify clearly in the Employer’s Requirements which Contractor’s Documents are to be submitted. Sub-Clause 5.2 states that the Contractor must submit all documents listed in the Employer’s Requirements, ensuring clarity and enabling the Employer to control the documentation process.

Option D is correct because it highlights the need for Employer’s Requirements to define the scope and content of the Contractor’s Documents.

Option A is incorrect; although operation and maintenance manuals are generally required, they are part of the specified Contractor’s Documents, not automatically required without Employer’s direction.

Option B is incorrect as the Contractor’s duty to supply documents is limited to those specified.

Option C is incorrect because documentation obligations are ongoing and not just at completion.

According to the FIDIC 2017 editions (Red, Yellow, and Silver Books), when the Contractor submits a revised programme, the Engineer or Employer has a limited time (typically 14 days) to review and raise any Notice of Non-Compliance if the programme does not meet contract requirements (Sub-Clause 8.3 or equivalent). If no notice is issued within this period, the Engineer or Employer is deemed to have no objection to the revised programme.

This does not imply formal approval or consent, but the programme can be used for the execution and administration of the works in the absence of objections. This avoids unnecessary delay due to inaction.

Option D is correct as it captures this deemed “no objection” position.

Option B is incorrect as “deemed consent” is stronger than FIDIC provisions state; it is more correct to say “no objection”.

Option A is incorrect since the Contractor does not have to remind the Engineer or Employer for consent within this period.

Option C is incorrect because the Contractor may proceed if no non-compliance is notified.

Under FIDIC Red and Yellow Books (both 1999 and 2017), once a Section or Part of the Works has been taken over by the Employer, even if a formal Taking-Over Certificate has not yet been issued, the practical effect is that the Works (or relevant Section) are considered completed and under the Employer’s control.

Clause 13 [Variations and Adjustments] allows the Engineer to instruct Variations only before the Works or a Section are taken over. After taking-over, the Contractor’s obligations shift from execution to remedying defects under Clause 11 [Defects Notification Period] . At this stage, the Contractor is no longer required to carry out new work beyond rectification unless separately agreed.

Therefore, once a Section/Part is taken over, the Engineer cannot instruct a Variation to that part of the Works. Any further work would require a separate agreement or contract, not a Variation under Clause 13.

This reflects a key FIDIC principle: Variations relate to the execution phase, not the post-completion (defects liability) phase. Thus, the statement is false.

Under FIDIC Red Book 2017, Clause 21 (Dispute Avoidance/Adjudication Board), particularly Sub-Clause 21.3, provides for the DAAB’s role in dispute avoidance, including informal assistance during site visits. This is a proactive mechanism designed to resolve issues before they escalate into formal disputes.

Key procedural requirements include: (1) both Parties must agree that they want DAAB involvement (Option A), (2) a joint written request must be submitted to the DAAB before assistance is provided (Option C), and (3) both Parties must be present during any informal discussions to ensure transparency and fairness (Option D). These steps ensure neutrality, equal participation, and procedural integrity.

Option B is incorrect and therefore the correct answer to the question. The Engineer has no formal role in authorizing or issuing a “non-objection letter” for DAAB informal assistance. The DAAB operates independently of the Engineer, and its involvement is strictly based on joint agreement between the Employer and Contractor. Introducing Engineer approval would contradict the independence and dispute avoidance function of the DAAB.

Thus, Option B does not belong to the required steps and is not supported by FIDIC provisions.

The Contractor may submit Value Engineering proposals to improve efficiency or reduce costs; however, it is not an absolute contractual obligation to submit such proposals. Also, the preparation of these proposals is generally at the Contractor’s own cost initially. If the proposal is accepted and results in a Variation, then adjustments to the Contract Price may occur, potentially reimbursing the Contractor.

Thus, both statements are false.

Both statements are correct:

Y is right that payment of Delay Damages does not relieve the Contractor from completing the Works.

You are also correct that excessive deduction of Delay Damages can reduce the Contractor’s cash flow, potentially worsening delays.

This situation requires careful balance between enforcing contractual rights and maintaining project progress.

Under FIDIC Red Book 1999, the Performance Security (or Performance Guarantee) is held to ensure the Contractor’s performance during the defects liability period. The security is typically released only after the Employer issues the Performance Certificate, which confirms the completion of defects liability obligations and that the Contractor has fulfilled the contract.

The contract commonly specifies a fixed period (often 21 days) within which the Employer must return the Performance Security after issuance of the Performance Certificate (Option D). The Taking-Over Certificate (Options A and C) marks substantial completion but does not end the Contractor’s obligations for defects.