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)
Correct Answer: B,D
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
CCM Exam Question 52
Under the FIDIC Red Book, which one of the following statements is correct for a claim by the Contractor?
Correct Answer: B
Under FIDIC Red Book 1999, the Engineer plays a key role in determining claims submitted by the Contractor (Clause 20). If the Engineer fails to make a determination within the prescribed time, the Parties may be unable to resolve the dispute and thus the matter may proceed to dispute resolution mechanisms. Option B is correct because if the Engineer does not decide, the claim remains unsettled, and the Parties are left to resolve the dispute, often via Dispute Adjudication Board or arbitration. Option A is incorrect; claims must comply with notice requirements to be valid. Option C is incorrect because the Engineer may request further particulars but is not obligated to give a final decision on quantum immediately. Option D is incorrect as the Engineer, not the Employer's Representative, first responds to claims. Option E is incorrect since the Engineer's decision is not final and binding if disputed; it may be challenged. References: FIDIC Red Book 1999 Edition, Clause 20 - Claims, Disputes and Arbitration FIDIC Contract Manager Study Guide, Module on Claims and Dispute Resolution
CCM Exam Question 53
What does discharge confirm under the FIDIC Red Book (edition 1999)?
Correct Answer: B
Discharge under FIDIC Red Book 1999 confirms full and final settlement of all money due to the Contractor. It signifies the Contractor's acceptance of the Final Payment Certificate and releases the Employer from further financial obligations related to the contract. Options A and C misrepresent the nature of discharge. Discharge is not a unilateral immediate termination but a financial closure. References: FIDIC Red Book 1999 Edition, Sub-Clause 14.13 - Discharge FIDIC Contract Manager Study Guide, Module on Final Account and Discharge
CCM Exam Question 54
Which two statements reflect an INCORRECT application of a Golden Principle?
Correct Answer: B,D
FIDIC's Golden Principles emphasize clarity, fairness, and completeness in contract drafting and administration. Incorrect applications often create risks, ambiguities, and disputes. * Option A is correct and reflects a good application of Golden Principles. When deleting clauses from the General Conditions, these must be replaced adequately in the Particular Conditions so that no essential contractual scope or responsibilities are lost or left undefined. * Option B is incorrect and reflects an improper deviation from the standard. The standard Commencement Date notification period is 42 days after the Contractor receives the Letter of Acceptance (per Sub-Clause 8.1). Extending it to 60 days without valid reason or clear agreement introduces uncertainty and potential delay. * Option C can be a legitimate contractual modification, provided it is agreed by the parties. Extending the Contractor's notice period for suspension from 21 days to 3 months is a significant change but not inherently contrary to Golden Principles if done transparently and fairly. * Option D is incorrect and reflects a poor application of Golden Principles. Deleting all clauses referring to the DAAB/DAB (Dispute Adjudication Board) removes a critical dispute avoidance and resolution mechanism, undermining contract fairness and efficiency. Therefore, Options B and D represent incorrect applications of the Golden Principles. References: FIDIC Contract Manager Study Guide, Module on Legal and Ethical Considerations and Golden Principles FIDIC Red Book 2017 Edition, Sub-Clause 8.1 - Commencement of Works FIDIC Red Book 2017 Edition, Clause 21 - Disputes and DAAB
CCM Exam Question 55
(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))
Correct Answer: B
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.