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NEW QUESTION # 10
Under the FIDIC Yellow Book (both editions), the Contract is administered by the Employer (unless it appoints an Employer's Representative) who endeavours to reach agreement with the Contractor on each claim. Is this statement true or false?
- A. True
- B. False
Answer: A
Explanation:
Comprehensive and Detailed Explanation:
This statement is true. The Employer administers the contract unless an Employer's Representative or Engineer is appointed to act on its behalf. The Employer (or its Representative) is responsible for reviewing and negotiating claims in good faith with the Contractor to reach agreement, in line with FIDIC procedures.
References:
FIDIC Yellow Book 1999 & 2017 Editions, Clause 3 - Employer's Administration Role FIDIC Contract Manager Study Guide, Module on Contract Administration
NEW QUESTION # 11
You are the Contract Manager in a highway project using FIDIC Red Book (edition 1999). You work for the Employer- a highway management agency. During the tender period, you are informed of a specific Commencement Date required by the directors of the agency. Which two of the following approaches to inform the tenderers of this date are clearly and unambiguously drafted?
Choose all of the correct answers (multiple possibilities).
- A. Inform the Commencement Date to the tenderers by email, and attach that email in the list of Contract Documents.
- B. Specify Commencement Date in the Contract Agreement.
- C. Specify Commencement Date in the Particular Conditions.
- D. Specify Commencement Date in the Minutes of Meeting of Contract Negotiation.
Answer: B,C
Explanation:
The Commencement Date is a critical contractual milestone that triggers contractual obligations including the start of time for completion. For clarity and enforceability, it must be specified clearly in contract documents forming part of the formal contract. The Contract Agreement (Option B) and the Particular Conditions (Option C) are the standard places to unambiguously specify the Commencement Date.
Minutes of meetings (Option A) or emails (Option D), while useful for informal communication, do not have the legal certainty or binding contractual effect unless expressly incorporated into the contract documents.
Therefore, specifying the Commencement Date solely in meeting minutes or emails is not advised for clarity and risk mitigation.
References:
FIDIC Red Book 1999, Sub-Clause 8.1 - Commencement of Works
FIDIC Contract Manager Study Guide, Module on Contract Formation and Execution
NEW QUESTION # 12
Is the Employer obliged under FIDIC Silver Book (edition 1999) to describe which Documents are to be submitted to the Employer? (1 correct response applies)
- A. Yes, the Employer should define which documents it wants to receive from the Contractor as Contractor's Documents in the Employer's Requirements, as stated in Sub-Clause 5.2.
- B. No, according to Sub-Clause 5.7 provisional operation and maintenance manuals are always required.
- C. No, because the Contractor has a duty to supply the Employer with every Document, given Sub-Clause
7.4. - D. Yes, because otherwise the Contractor doesn't have to submit any Document until Completion of the Works as stated in Sub-Clause 1.8.
Answer: A
Explanation:
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.
References:
FIDIC Silver Book 1999 Edition, Sub-Clause 5.2 - Contractor's Documents FIDIC Silver Book 1999 Edition, Sub-Clause 1.8 - Time for Completion FIDIC Contract Manager Study Guide, Module on Contract Administration Procedures
NEW QUESTION # 13
Which one of the following is NOT considered a change made in the 2017 edition of the FIDIC Red, Yellow, and Silver Books?
- A. A fair and balanced approach where risk is allocated to the Party that is best able to bear and control that risk.
- B. New procedures requiring the Contractor to prepare and implement a Quality Management System to show compliance with the Contract requirements.
- C. New procedures requiring the Contractor to prepare and implement a Compliance Verification System to show that the design, materials, workmanship and certain other matters all comply.
- D. The concentration on dispute avoidance, including an enhanced role for the Dispute Avoidance and Adjudication Board (DAAB) in this respect, and promoting cooperation between the parties during the project.
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
Option D is not a new procedure introduced in the 2017 FIDIC editions.
The 2017 editions focus on dispute avoidance (A), quality management systems (B), and fair risk allocation (C), but do not explicitly require a Compliance Verification System as described.
References:
FIDIC Red, Yellow, Silver Books 2017 Editions - Overview of Changes
FIDIC Contract Manager Study Guide, Module on Contract Updates
NEW QUESTION # 14
Which one of the following is not a required document to be submitted by the Contractor if the Employer requests a proposal, prior to instructing a Variation, for FIDIC 2017 Yellow Book?
- A. A Programme for execution of the varied work.
- B. A description of the proposed design.
- C. A description of the varied work.
- D. Details of the resources and methods to be adopted by the Contractor.
Answer: B
Explanation:
When the Employer requests a proposal prior to instructing a Variation, the Contractor is typically required to submit:
A description of the varied work (Option A).
Details of resources and methods for carrying out the Variation (Option C).
A Programme showing how the Variation will be executed (Option D).
A description of the proposed design (Option B) is not always required as part of the Variation proposal, especially if the Variation is limited to changes in execution rather than design.
References:
FIDIC Yellow Book 2017 Edition, Sub-Clause 3.4 - Variation Procedure
FIDIC Contract Manager Study Guide, Module on Variations and Change Management
NEW QUESTION # 15
What are two differences between a notice and other communications under the FIDIC Red Book (edition
2017)? (2 correct answers apply)
Choose all of the correct answers (multiple possibilities).
- A. Both 'Notice' and 'Other Communications' are defined terms under the Conditions of Contract.
- B. The Parties and Engineer shall be given original or copy of any Notice, Notice of Dissatisfaction (NOD) and Certificates, which is not always the case for other communications.
- C. Notice is a defined term, while other communications are not defined as a term in the General Conditions.
- D. Contractually there is no difference between a notice and other communications.
Answer: B,C
Explanation:
Option A is correct: "Notice" is a defined term under FIDIC 2017 Red Book; "Other Communications" is a separate category, also defined but distinct.
Option D is correct: Notices, Notices of Dissatisfaction, and Certificates require delivery to all Parties and the Engineer, whereas other communications may not have such strict requirements.
Option B is incorrect as there are contractual differences.
Option C is partially correct but "Other Communications" and "Notice" are distinct terms, so A is more precise.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 1.1 - Definitions
FIDIC Contract Manager Study Guide, Module on Contract Communication
NEW QUESTION # 16
Which one of the following claim events does NOT allow profit?
- A. Under the Construction Contract, the Engineer's delay in supplying drawings or issuing instructions.
- B. Under the Construction Contract, the failure of the Employer to give right of access to the site.
- C. Under the Construction Contract, interference by the Employer with Tests on Completion.
- D. Under the Construction Contract, the relevant authority had unnecessarily delayed the approval.
- E. Under the Plant and Design-Build Contract, errors in the Employer's requirements.
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
Under FIDIC contracts:
Profit is usually allowed on claims arising from Employer-caused delays, instructions, or breaches that directly affect the Contractor's performance or costs (Options A, B, C, and E).
Option D relates to delays caused by third parties (authorities). Typically, delays caused by relevant authorities (e.g., permit or approval delays) are treated differently, and profit is not generally recoverable on these claims as they are considered neutral or force majeure-type delays. The Contractor may receive an extension of time and reimbursement of direct costs but not profit.
Thus, Option D is the claim event where profit is not allowed.
References:
FIDIC Red, Yellow, and Silver Books 1999 and 2017 Editions, Clauses on Claims and Compensation FIDIC Contract Manager Study Guide, Module on Claims and Profit on Claims
NEW QUESTION # 17
Giving "Notice" .... [2017 edition] (2 correct answers apply)
Choose all of the correct answers (multiple possibilities).
- A. ... is a special obligation for the Engineer only, in order to enable him/her to manage the implementation of the contract.
- B. ... is not a compulsory obligation, but "highly recommended".
- C. ... is always compulsory together with a clear indication of the relevant Sub-Clause under which the Notice is being served.
- D. ... is intended for written communications, in full compliance with the formal requirements outlined in the dedicated Sub-Clause.
Answer: C,D
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 # 18
The Contractor is entitled to an advance payment, it has obtained such payment and it has not yet been entirely paid back. Under FIDIC Red Book (edition 1999), in which two situations will the outstanding balance of the advance payment become immediately due?
Choose all of the correct answers (multiple possibilities).
- A. If advance payment is not completely repaid before the Performance Certificate is issued.
- B. If the advance payment is not completely repaid before Time for Completion.
- C. If the advance payment is not completely repaid before termination of the Contract.
- D. If the advance payment is not completely repaid before the Taking-Over Certificate is issued.
Answer: B,C
Explanation:
Under the FIDIC Red Book 1999, advance payment is a sum paid to the Contractor to help cash flow early in the project. It must be repaid through deductions from interim payments according to a specified schedule.
* Sub-Clause 14.5 (Advance Payment)states that the Contractor must repay the advance payment by installments, typically by the Time for Completion. If the advance payment has not been fully repaid by the Time for Completion, the outstanding balance becomes immediately due and payable by the Contractor (Option A). This ensures the Employer recovers the advance by the time the project completes.
* Additionally,upon termination of the Contract(Sub-Clause 15.2 or relevant termination clauses), any outstanding balance of the advance payment becomes immediately due (Option D). This protects the Employer's financial interest if the Contract ends prematurely.
* Option B (before the Performance Certificate is issued) and Option C (before the Taking-Over Certificate is issued) arenotexplicitly linked in FIDIC Red Book 1999 to triggering immediate repayment of the advance payment. The Taking-Over Certificate marks practical completion and may precede the final repayment schedule, while the Performance Certificate is issued after the Defects Notification Period.
Therefore, the correct situations for immediate repayment of outstanding advance payment balance arebefore Time for Completion and upon termination of the Contract.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 14.5 - Advance Payment
FIDIC Red Book 1999 Edition, Sub-Clause 15.2 - Termination by Employer (Payment obligations) FIDIC Contract Manager Study Guide, Module on Payment Procedures and Financial Management
NEW QUESTION # 19
Under the FIDIC Red Book, which one of the following statements is correct for a claim by the Contractor?
- A. The Engineer's response to the Contractor's submission of detailed particulars that are required by the procedure for claims by the Contractor must include the Engineer's final decision on the quantum.
- B. It is the Employer's Representative who must first respond to the claim by the Contractor.
- C. The Employer has the authority to accept a claim by the Contractor, even in the case of the Contractor's failure to comply with the notice requirements.
- D. If the Engineer does not make a determination, the Employer and the Contractor are unable to agree to settle an issue that gave rise to a claim.
- E. The Engineer's response to a claim by the Contractor is final and binding upon the Employer.
Answer: D
Explanation:
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
NEW QUESTION # 20
Which two statements reflect an INCORRECT application of a Golden Principle?
- A. When applying the FIDIC Red Book or Yellow Book, the Commencement Date shall be within 60 days after the Contractor receives the Letter of Acceptance, in lieu of 42 days.
- B. The Contractor's right to suspend work (or reduce the rate of work) effective after giving not less than 3 months (in lieu of 21 days) notice to the Employer.
- C. Any deletions of General Conditions (GC) must be replaced with Particular Conditions (PC) that cover the same scope, and do not leave any roles, duties, obligations, rights, and risk allocation undefined.
- D. Deleting all the clauses in the General Conditions that refer to the DAAB/DAB.
Answer: A,D
Explanation:
FIDIC's Golden Principles emphasize clarity, fairness, and completeness in contract drafting and administration. Incorrect applications often create risks, ambiguities, and disputes.
* Option Aiscorrectand 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 Bisincorrectand reflects an improper deviation from the standard. The standard Commencement Date notification period is42 daysafter 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 Ccan 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 Disincorrectand 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 Drepresent 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
NEW QUESTION # 21
Which one answer holds two statements that are both correct with regards to risks and key considerations regarding the Golden Principles?
- A. "The Contractor should take advantage of its bargaining power every time possible" AND "Disputes are avoided to the extent achievable, minimised when they do arise, and resolved efficiently."
- B. "Only the Employer should be the one to obtain the best value for money" AND "The Contractor
/Subcontractor is paid adequately and timely in accordance with the Contract to maintain its cash flow." - C. "The Contractor/Subcontractor is paid adequately and in a timely manner in accordance with the Contract to maintain its cash flow" AND "The terms of the Contract are comprehensive and fair to primarily the Employer".
- D. "The Employer obtains the best value for money" AND "Disputes should be avoided to the extent achievable."
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
Option A correctly reflects Golden Principles emphasizing the Employer's objective of obtaining value for money and the importance of avoiding disputes as much as possible.
Other options either misrepresent the balanced nature of FIDIC principles or promote unfair or unbalanced positions.
References:
FIDIC Contract Management Guidelines - Golden Principles
FIDIC Contract Manager Study Guide, Module on Legal and Ethical Considerations
NEW QUESTION # 22
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'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.
- 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 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.
- D. Receipt of a statement and supporting documents.
Answer: C,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 # 23
The FIDIC Red Book (edition 1999) deals with Value Engineering Clause. It follows from this clause that the Contractor shall give notice to the Engineer with supporting particulars. Upon receiving this notice, the Engineer shall proceed in accordance with Sub-Clause 3.5 to agree or determine this Cost, which shall be included in the Contract Price.
- A. True
- B. False
Answer: A
Explanation:
Under FIDIC Red Book (1999), the Value Engineering Clause requires the Contractor to notify the Engineer with full details and cost implications when proposing Value Engineering changes. The Engineer then follows the Variation procedure in Sub-Clause 3.5 to agree or determine the cost adjustment, which will be reflected in the Contract Price.
This ensures transparent handling of Value Engineering proposals and proper contractual adjustments.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 13.1 - Value Engineering
FIDIC Contract Manager Study Guide, Module on Variations and Value Engineering
NEW QUESTION # 24
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 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.
- B. 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.
- C. 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.
- D. 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.
Answer: D
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 # 25
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