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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q126-Q131):

NEW QUESTION # 126
Which one of the following statements is NOT correct in respect of FIDIC Red Book (both editions)?

Answer: A

Explanation:
Option A is NOT correct because the wording of the Letter of Tender is usually governed by the tender documents and contract terms; it is not solely at the Contractor ' s discretion to dictate when the Contract becomes effective. The standard process is that the Contract becomes effective upon the Employer's issuance of the Letter of Acceptance.
Options B, C, and D correctly describe standard FIDIC practices.
References:
FIDIC Red Book 1999 & 2017 Editions - Contract Formation and Tendering
FIDIC Contract Manager Study Guide, Module on Contract Formation


NEW QUESTION # 127
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?

Answer: C

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 # 128
Which one of the following statements regarding drafting contracts based on FIDIC Books is correct?

Answer: D

Explanation:
Option D is correct because contract drafting should strategically allocate risks between parties based on who can best manage them and the Employer's budget for risk and reward. Understanding risk appetite is key to tailoring FIDIC contracts appropriately.
Option A is exaggerated; while amendments can introduce issues, careful drafting can preserve benefits of standardization.
Option B is partly true but mixing arrangements is complex and not always straightforward.
Option C is incorrect; the Employer usually chooses the contract form.
References:
FIDIC Contract Management Guidelines - Golden Principles
FIDIC Contract Manager Study Guide, Module on Contract Drafting and Risk Allocation


NEW QUESTION # 129
If a FIDIC Red, Yellow, or Silver Book (edition 2017) is applied, in which of the following two cases is the Contractor required to submit a revised programme?
Choose all of the correct answers (multiple possibilities).

Answer: B,D

Explanation:
Comprehensive and Detailed Explanation:
Option C is correct: The Contractor must revise the programme whenever it no longer accurately reflects progress or obligations.
Option D is correct: The Contractor must also revise the programme upon formal request if it fails contract compliance or progress reflection.
Option A is incorrect; the Contractor has ongoing obligations beyond formal requests.
Option B is incorrect; no 42-day threshold applies in the contract for revision.
References:
FIDIC Red, Yellow, Silver Books 2017 Edition, Sub-Clause 8.3 - Programme FIDIC Contract Manager Study Guide, Module on Programme and Delay Management


NEW QUESTION # 130
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?

Answer: B

Explanation:
According to FIDIC Yellow Book 2017, Sub-Clause 4.5, the Employer has the right to pay a nominated Subcontractor directly if the Contractor fails to do so and can deduct the amount from payments due to the Contractor. This provision protects nominated Subcontractors and ensures payment continuity. The Contractor ' s failure to provide evidence of payment and justification for withholding payment justifies the Employer ' s direct payment and deduction.
Thus, the Engineer's determination should allow the Employer to deduct the 100,000 USD paid directly to the nominated Subcontractor from the Contractor's next Interim Payment, ensuring fairness and contract compliance.
References:
FIDIC Yellow Book 2017 Edition, Sub-Clause 4.5 - Nominated Subcontractors FIDIC Contract Manager Study Guide, Module on Claims and Payment Procedures


NEW QUESTION # 131
......

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