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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)?
- A. The Letter of Tender may be worded by the Contractor (at its discretion) so as to allow for the alternative of the Contract to become effective when the Employer issues a Letter of Acceptance.
- B. The Contract typically becomes legally effective when the Employer issues the Letter of Acceptance to the Contractor.
- C. The Contract is administered by the Engineer who is appointed by the Employer. If disputes arise, they are referred to a Dispute Adjudication Board (DAB) for its decisions.
- D. The General Conditions allocate the risks between the parties on a fair and equitable basis.
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?
- A. A prolonged suspension for more than 1 year has affected the whole of the Works.
- B. The Employer failed to comply with a final and binding determination issued by the Engineer, and such failure constitutes a material breach of the Employer ' s obligations under the Contract.
- C. The Contractor has requested the Employer but has not received any evidence that the financial arrangement is being maintained, despite having sent a notice thereto 4 months earlier.
- D. The Contractor does not receive the amount due under the latest Payment Certificate for more than 4 months after the due date.
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?
- A. The FIDIC Books provide people who draft contracts with great examples on how to draft a good contract model. Furthermore, arrangements from Red, Yellow and Silver Books can be easily mixed to get a good fit for a specific project.
- B. The Form of Contract is chosen by the Contractor and imposed by him on the Employer, who tenders on that basis.
- C. Amending clauses, supposedly in the interest of the Employer, immediately nullifies all the advantages of standardization, and almost invariably introduces conflicting or ambiguous requirements on the parties, and often causes mistrust between them.
- D. People who draft contracts should, when preparing a new contract, always start with the question:where do I want to lay the most risks between Employer and Contractor, and does the Employer has the budget to reward Contractors with a high risk apatite?
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).
- A. To accurately reflect the actual progress of the Works, but only if any Programme ceases to reflect actual progress with at least 42 days.
- B. To accurately reflect the actual progress of the Works, whenever any Programme ceases to reflect actual progress or is otherwise inconsistent with the Contractor's obligations.
- C. The Contractor shall revise the Programme only by request from the Engineer or the Employer (in case of FIDIC Silver Book).
- D. Upon a request from the Engineer (under FIDIC Red or Yellow Books) or Employer (under FIDIC Silver Book) notifying it that the Programme fails to comply with the Contract, to a specified extent, or no longer reflects actual progress or is otherwise inconsistent with the Contractor's obligations.
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?
- A. The Employer is not entitled to deduct the amount directly paid.
- B. The Employer is entitled to deduct the amount directly paid.
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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