Pass the FIDIC Contract Manager CCM Questions and answers with CertsForce

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Questions # 21:

Which two statements are correct regarding the FIDIC Red Book (edition 2017)?

Options:

A.

Words and expressions stated in Sub-Clause 1.1 Definitions do not apply in respect of Specifications and Drawings.


B.

Contract Data contains information which is required by certain Sub-Clauses in the General Conditions.


C.

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.


D.

In some cases, if a certain information is not provided in the Contract Data, the relevant Sub-Clause shall not be applicable.


Expert Solution
Questions # 22:

Under the FIDIC Red Book (edition 1999): the Contractor submitted Final Statement in accordance with the Contract and the Contractor wants to correct it. Can the Contractor correct the Final Statement?

Options:

A.

Yes


B.

No


Expert Solution
Questions # 23:

You are the Contract Manager of the Engineer in a hotel project. In May 2020, the Employer and the Contractor signed a Contract based on the FIDIC Yellow Book (edition 2017), as per which the Contractor will design and build a hotel project with Contract Price of 5,100,000 USD. The Time for Completion for this project is 12 months (May 2021). The Contract also named a nominated Subcontractor (as referred to in Sub-Clause 4.5) who provides mechanical, electrical, and plumbing services for the project (including the fire fighting system), which was accepted by the Contractor without any discussions.

The Project was delayed due to issues with the fire fighting system, and you issued the Taking-Over Certificate in June 2022.

The Employer sent a Notice of Claim to the Contractor on Delay Damages with a maximum value equal to 10% of Contract Price (510,000 USD). The Employer also gave a Notice to the Contractor stating that the Contractor has failed to submit the evidence of payment to the nominated Subcontractor as well as the reason for withholding payment to the nominated Subcontractor. Therefore, the Employer has paid the nominated Subcontractor directly the entire amount due, coming to 100,000 USD. The Employer intends to include this amount as a deduction in the Final Payment to the Contractor.

As Contract Manager of the Engineer, you are tasked to make a fair determination of the Notices of the Employer. In your "Notice of the Engineer's determination", what is your determination for the deduction of the next Interim Payment to the Contractor in relation to the amount directly paid to the nominated Subcontractor?

Options:

A.

The Employer is entitled to deduct the amount directly paid.


B.

The Employer is not entitled to deduct the amount directly paid.


Expert Solution
Questions # 24:

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)

Options:

A.

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.


B.

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.


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.


Expert Solution
Questions # 25:

Under the FIDIC Red, Yellow, and Silver Books (edition 2017), if a Dispute is referred to the Dispute Avoidance and Adjudication Board (DAAB) to obtain its decision, the Parties shall suspend performing their obligations in accordance with the Contract, until they receive further directions from the DAAB. Is this statement true or false?

Options:

A.

True


B.

False


Expert Solution
Questions # 26:

Which of the following FIDIC contract forms require certification in the payment process? (2 correct answers apply)

Choose all of the correct answers (multiple possibilities).

Options:

A.

FIDIC Conditions of Contract for Construction ("Red Book").


B.

FIDIC Conditions of Contract for Plant and Design Build ("Yellow Book").


C.

FIDIC Conditions of Contract for EPC/Turnkey Projects ("Silver Book").


Expert Solution
Questions # 27:

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)

Options:

A.

Ad-hoc DAAB


B.

DAB


C.

Ad-hoc DB


D.

Ad-hoc arbitration


Expert Solution
Questions # 28:

In case a Variation is initiated by the Engineer for prompt implementation ...... [FIDIC Red, and Yellow Books, 2017 Editions]

Choose all of the correct answers (multiple possibilities).

Options:

A.

... the Contractor may send a Notice to the Engineer, that the subject of the Variation was Unforeseeable (having regard to the scope and nature of the Works), hence, the Contractor is not to start implementing the varied work promptly.


B.

... the Contractor is required to commence implementing the varied works and take records of all the details ( ... regarding the details of the varied works executed, expenditures incurred, and impact on progress etc.)


C.

... the Contractor is required to commence implementing the varied works even if it would pose immediate hazard to the safety of public areas surrounding the Site


D.

... the Contractor within 28 days after receiving such instruction shall submit to the Engineer a description of the varied work, a programme for its execution and a proposal for adjustment of the Contract Price.


E.

... the Contractor is not bound to start implementing the varied works right up until the price for the varied works is fully agreed (or determined)


Expert Solution
Questions # 29:

Regarding the FIDIC Red Book (edition 1999), which two statements are true?

Options:

A.

In emergency situations notices can also be submitted verbally (rather than (also) in writing).


B.

A notice is to be signed by the Engineer, Contractor's Representative or Employer's Authorised Representative.


C.

A notice and other communications may be delivered by hand, courier and mail. In each case with proof of receipt is required to qualify as legally valid.


D.

Notices and other communications may be sent in hand written, type written, in print or through an electronic original transmission system.


Expert Solution
Questions # 30:

You are the Contract Manager of the Employer's Representative in a Thermal Power Plant Project. The Contract for this project is EPC Turnkey Contract using the FIDIC Silver Book (edition 2017) with a Contract Price of 28 million USD. The Employer's Requirements require that: "the Contractor design in accordance with international and national technical regulations, and standards, [etc.]".

For piling works, the Employer's Requirements state that the Contractor will design according to a specific national standard for piling works NTS-PW-01. After all piles for the jetty have been installed, a pile load test on lateral bearing capacity shows that actual lateral bearing capacity is much lower than the calculated lateral bearing capacity. It was later revealed by the Technical Standard Committee that there was a typo mistake during preparation of the NTS-PW-01 (translated from a foreign standard). The lateral bearing capacity of installed piles had been substantially overestimated as a result of this typo. Contractor submits a claim for 200,000 USD regarding extra costs for installing additional piles as a result of errors in the Employer's Requirements.

In the hydrological information of Site Data provided by the Employer, the annual high water level is 4.0m. However, during the design stage, with updated data from local stations along the rivers, the Contractor found out there was a mistake in the calculation. The annual high water level should be 4.5m. As a result, the Contractor has to design and build additional flood walls along the river to protect the Plant from flooding. The Contractor claims an amount of 300,000 USD to construct the flood wall, based on Unforeseeable difficulties.

As the Employer's Representative, after you have consulted with both Parties but failed to reach agreement, you will make a fair determination of the Claims of the Contractor.

In your "Notice of the Employer's Representative's determination", what is your determination for the Contractor?

Options:

A.

The Contractor is not entitled to either of the Claims.


B.

The Contractor is entitled to the Claim for additional costs in relation to the piling, based on errors in the Employer's Requirement only.


C.

The Contractor is entitled to the Claim for the additional flood wall based on Unforeseeable difficulties only.


D.

The Contractor is entitled to both Claims.


Expert Solution
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