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FIDIC CCM Certified Contract Manager Exam Practice Test

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Total 140 questions

Certified Contract Manager Questions and Answers

Question 1

You are teaching a group of early career professionals in the Contract Management department about the FIDIC 2017 Rainbow Suite of contract, and you are explaining about the intention of Delay Damages. Which one of the following statements is correct?

Options:

A.

Delay Damages is intended to provide full compensation to the Employer for all damages that it is expected to suffer as a result of the delay.

B.

Delay Damages is intended to be treated as an incentive for the Contractor to perform on time.

C.

Delay Damages is not intended to remove burden for the Employer to demonstrate and prove that it has suffered any loss or damage.

D.

None of the above.

Question 2

Which one of the following claim events does NOT allow profit?

Options:

A.

Under the Construction Contract, interference by the Employer with Tests on Completion.

B.

Under the Construction Contract, the Engineer ' s delay in supplying drawings or issuing instructions.

C.

Under the Construction Contract, the failure of the Employer to give right of access to the site.

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.

Question 3

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

Choose all of the correct answers (multiple possibilities).)

Options:

A.

The Contract includes the General Conditions and Particular Conditions, and no other documentation.

B.

Conditions of Contract means these General Conditions as amended by Particular Conditions.

C.

Contract Data is part of General Conditions of Contract.

D.

Contract Agreement, Letter of Acceptance and Letter of Tender are part of the Contract.

Question 4

Which FIDIC Book (edition 2017) should be considered first by an Employer that is an experienced employer who knows exactly what they want from a design & engineering perspective?

Options:

A.

Yellow Book

B.

Red Book

C.

Silver Book

D.

Yellow or Silver Book

Question 5

Regarding FIDIC Yellow and Silver Books (edition 1999) the Contractor has submitted its design proposal through the Contractor ' s Proposal. Which two of the following statements are true in this respect, after it has been submitted?

Choose all of the correct answers (multiple possibilities).

Options:

A.

The Contractor is entitled to change the design by optimising the design, without approval of the Employer/Engineer.

B.

The Contractor is not allowed to make any changes regarding the design to optimise the design, unless approved by the Engineer/Employer.

C.

The Contractor may submit a proposal for Value Engineering.

D.

The Contractor is not allowed to submit a proposal for Value Engineering, as any value engineering should already have taken place before submitting its design proposal.

Question 6

When does discharge become effective under the FIDIC Red Book (edition 1999)? (1 correct answer applies)

Options:

A.

When the Contractor receives full payment certified through the Final Payment Certificate.

B.

When the Contractor receives its Performance Security from the Employer.

C.

When the Contractor receives full payment certified through the Final Payment Certificate and return of the Performance Security.

D.

When the Employer counter signs a discharge notice as issued by the Contractor, following full payment and return of the Performance Security.

Question 7

The FIDIC Books are evolutions of earlier contract models, and although the different versions of a specific model are not the same, familiarity in definitions and structure makes it easier to work with different FIDIC books as well as with their different editions.

Is this statement true or false?

Options:

A.

True

B.

False

Question 8

(Regarding the FIDIC Red Book (edition 2017): what two answers provide for requirements regarding a notice and other communication?

Choose all of the correct answers (multiple possibilities).)

Options:

A.

If a form of communication is to qualify as a Notice, it must be identified as a notice.

B.

If the recipient ' s address differs from the address stated in the Contract Data, notices and other communications may be delivered to that other correct address.

C.

If a form of communication does not qualify as a notice but as other communication, it must be identified as such and shall include reference of provision of Contract under which it is issued (if appropriate).

D.

Notices and other communications shall be delivered to the address of the Contractor ' s Representative.

Question 9

(Which two of the following statements are correct regarding the first step of an Employer ' s Claim, considering that the Employer is entitled to a reduction in the Contract Price and/or an extension of the Defects Notification Period under any Clause of the Conditions of Contracts or otherwise in connection with the Contract, under the FIDIC Red, Yellow, and Silver Books (edition 2017)?

Choose all of the correct answers (multiple possibilities).)

Options:

A.

The Employer shall give a Notice to the Engineer, describing the event or circumstance giving rise to the cost, loss, delay or extension of the Defects Notification Period for which the Claim is made.

B.

The Notice shall be given to the Engineer, as soon as practicable, and no later than 28 days after the claiming Party became aware, or should have become aware, of the event or circumstance.

C.

A Notice from the Employer is not required in order to give a Notice to the Engineer for services requested by the Contractor.

D.

The Notice given by the Employer must also include the legal or contractual basis of the claim, including the clause of the Contract under which it is made.

Question 10

You are the Contract Manager for the Engineer in a hotel project using FIDIC Red Book (edition 1999). The Employer demands perfection in the project ' s design and construction quality. There are many Variations initiated by the Employer during construction. Which one of the following is NOT considered as a Variation?

Options:

A.

The Contractor submits a Value Engineering proposal, in which it proposed to change the colour of the outdoor paint. The Engineer approved the proposal.

B.

The Engineer instructs a change in slopes of stairs to the parking lot with an Instruction in accordance with Sub-Clause 3.3.

C.

The Engineer requests a proposal regarding a change in type of windows and doors of the business centre.

D.

The Employer verbally instructs a change in the layout of the rooftop restaurant. The Engineer issued an Instruction describing the required change with revised design drawings.

Question 11

Under FIDIC Red and Yellow Books (edition 2017), which two of the following elements shall form part of the revised programme?

Choose all of the correct answers (multiple possibilities)

Options:

A.

All internationally recognized holiday periods.

B.

The actual progress to date, any delay to such progress and the effects of such delay on other activities (if any).

C.

The sequence and timing of the remedial work.

D.

Only the delivery dates of Plant and Materials which have not been delivered on Site yet.

Question 12

Under the FIDIC Red Book, which one of the following statements is correct for a claim by the Contractor?

Options:

A.

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.

B.

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.

C.

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.

D.

It is the Employer ' s Representative who must first respond to the claim by the Contractor.

E.

The Engineer ' s response to a claim by the Contractor is final and binding upon the Employer.

Question 13

(Based on Clause 8 in both FIDIC Yellow and Silver Books (edition 1999), is the Contractor allowed to start the design of the Works before the Commencement Date? (1 correct answer applies))

Options:

A.

Yes, but Contractor will do so on its own risk.

B.

Yes, Contractor can start design and execution of the Works to make sure it won ' t lose any time.

C.

No, because any design or execution before the Commencement Date is prohibited in Clause 8.

D.

Yes, but Contractor will do so on Employer ' s risk.

Question 14

(Under the FIDIC Red and Yellow Books (edition 1999), which two of the following answers are correct regarding the application for Interim Payment Certificates? Choose all correct answers.)

Options:

A.

The Contractor shall submit a Statement in five copies to the Employer.

B.

The statement submitted by the Contractor shall include, if applicable, any amounts to be added for Provisional Sums.

C.

Each statement must be accompanied (or preceded) by supporting documents, including the progress report specified in Sub-Clause 4.21, for the relevant period.

D.

The statement submitted by the Contractor shall include, if applicable, any amounts to be added and deducted for Plant and Materials.

Question 15

Before applying the procurement process of any FIDIC Book, the Employer should always check if there are local procurement rules that also apply. Which one of these responses is correct?

Options:

A.

No, because the FIDIC procurement process is universal.

B.

No, because Employers never have specific procurement rules.

C.

Yes, based on the law system, internal governance or type of Employer additional procurement rules can apply.

D.

Yes, but this is only applicable for public entities like governments. If the Employer is a private organisation (like a company), they are free to procure how they want.

Question 16

A new important feature of the FIDIC Yellow and Silver Books (edition 2017) is the inclusion of the default position that the Works or relevant part of the Works designed by the Contractor shall be fit for their ordinary purposes. Is this statement true or false?

Options:

A.

True

B.

False

Question 17

Under the FIDIC Red and Yellow Books (edition 1999): if the Engineer gives an instruction which requires the Employer ' s prior approval, the Contractor is required to verify whether the Engineer has obtained the Employer ' s prior approval or not. Is this statement true or false?

Options:

A.

True

B.

False

Question 18

(Under FIDIC Red Book (edition 1999) a notice may be delivered to which two addresses?

Choose all of the correct answers (multiple possibilities).)

Options:

A.

The address stated in the Contract Data.

B.

The address provided for by the recipient of the notice.

C.

The address of the Site.

D.

The address of the Contractor ' s Representative.

Question 19

(Which two of the following items are new features introduced in FIDIC Red and Yellow Books (edition 2017) in respect to the procedures relating to the Programme?

Choose all of the correct answers (multiple possibilities).)

Options:

A.

The requirement to submit a revised programme by the Contractor whenever the previous programme is inconsistent with actual progress.

B.

Specifying the programming software that shall be used by the Contractor in preparation of the Programme.

C.

The requirement that any revised programmes to be submitted by the Contractor is to reflect accurately the actual progress of the works.

D.

Submission by the Contractor of a detailed time Programme to the Engineer within 28 days after receiving the notice under Sub-Clause 8.1.

Question 20

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).

Options:

A.

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.

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 ' 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.

D.

Receipt of a statement and supporting documents.

Question 21

(If a Section or Part has been taken-over but the Taking-Over Certificate has not been issued for the Works, the Engineer has the right to instruct a Variation to that Section/Part. Is this statement true or false?)

Options:

A.

True

B.

False

Question 22

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

Options:

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.

Question 23

(Under the FIDIC Red Book, which of the following statements are correct? [2017 Edition] (2 correct answers apply)

Choose all of the correct answers (multiple possibilities).)

Options:

A.

An attempt to reach an amicable settlement is a mandatory requirement before an Engineer ' s ruling can be referred to a DAAB.

B.

A decision by a DAAB is not final and binding on the Parties until it is confirmed by an arbitration award.

C.

The FIDIC Red Book ' s General Conditions specify a standing DAAB.

D.

A DAAB member nominated by one of the Parties must be agreed by the other Party.

E.

If the Employer or the Contractor fails to notify its dissatisfaction with an Engineer ' s ruling within the specified time, the DAAB ' s decision is final and binding.

Question 24

In a drafted FIDIC Silver Book (edition 1999), the following sentence has been added to Sub-Clause 3.5:

" In case of an Instruction regarding a pending or proposed Variation, Contractor shall carry out any determination regardless of a possible notice of dissatisfaction. "

What GP(s) is/are breached?

Options:

A.

GP1 only

B.

GP3 only

C.

GP1 and GP3

D.

GP1, GP2 and GP3

Question 25

(In the FIDIC Yellow Book (edition 1999), the Contractor has to provide the Engineer with documents as stated in Sub-Clause 5.2. Who is responsible for ensuring there is sufficient time allocated for reviewing these documents in relation to the Schedule of the Works?)

Options:

A.

Contractor

B.

Engineer

C.

Employer

Question 26

You are the Contract Manager of the Engineer and person Y is the Contract Manager of the Employer in a construction project under FIDIC 2017 Red Book. The project is late in schedule and Y has issued Employer ' s claim on Delay Damages. You have asked Y to consider whether the Contractor ' s delay to completion is a reflection of cash-flow shortfall from interim payments before making deductions to the Contractor ' s payment. Y replied that even if the Contractor pays Delay Damages to the Employer, the Contractor is still obliged to complete the Works and is not relieved from its duties and obligations. You warned Y of the risks of further reduction of cash-flow by the deduction of Delay Damages from payments. As this could worsen the situation of the Contractor, leading to further delays to the completion of the Works. Who is right?

Options:

A.

Both you and Y are both correct.

B.

You are correct, Y is wrong.

C.

You are wrong, Y is correct.

D.

Both you and Y are wrong.

Question 27

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).

Options:

A.

The Contractor shall revise the Programme only by request from the Engineer or the Employer (in case of FIDIC Silver Book).

B.

To accurately reflect the actual progress of the Works, but only if any Programme ceases to reflect actual progress with at least 42 days.

C.

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.

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.

Question 28

Giving " Notice " .... [2017 edition] (2 correct answers apply)

Choose all of the correct answers (multiple possibilities).

Options:

A.

... is not a compulsory obligation, but " highly recommended " .

B.

... is always compulsory together with a clear indication of the relevant Sub-Clause under which the Notice is being served.

C.

... is a special obligation for the Engineer only, in order to enable him/her to manage the implementation of the contract.

D.

... is intended for written communications, in full compliance with the formal requirements outlined in the dedicated Sub-Clause.

Question 29

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.

Question 30

Which one statement is correct regarding the FIDIC Red Book (edition 2017)?

Options:

A.

Instructions to Tenderers are part of the Employer ' s Requirements.

B.

No Data other than required by the General Conditions of Contract may be entered in the Contract Data.

C.

Instructions to Tenderers may require the tenderer to provide information on matters in Sub-Clause 4.3 on Contractor ' s Representative and Sub-Clause 6.12 on Key Personnel.

D.

General Conditions of Contract cannot be amended as it may imbalance the obligations and rights of the Parties.

Question 31

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?

Options:

A.

True

B.

False

Question 32

Under the FIDIC Red Book (edition 2017), if the Contractor fails to comply with Site clearance obligation, what two options does the Employer have?

Choose all of the correct answers (multiple possibilities)

Options:

A.

The Employer may sell or otherwise dispose any remaining items and reinstate the Site at the Contractor ' s Cost.

B.

The Engineer cannot sell or otherwise dispose any remaining items and reinstate the Site at the Contractor ' s Cost.

C.

The Employer is entitled to the cost of reinstating, clearing the Site and disposal cost to the extent they exceed the money received from selling the remaining Contractor ' s items on the Site.

D.

The Employer cannot reinstate and clear the Site and dispose the remaining Contractor ' s items on the Site if the Contractor fails, as this is the Contractor ' s obligation.

Question 33

During the execution of certain Works under a FIDIC Yellow Book (edition 1999), a Contract in a historical area along the silk route, one of the workers on the excavator shouts out to the supervisor of the Contractor it has discovered something on the Site. The supervisor inspects the finding and concludes this is possibly an ancient treasure in a wooden box. The supervisor sees some golden coins through the cracked lid of the box. The supervisor immediately stops the execution of the Works, sends the workers away and blocks access to the Site for all persons. Given the sensitive nature of the findings, the supervisor informs you as Engineer. How do you react?

Options:

A.

You compliment the supervisor for their swift and decisive action. However, the Works should advance as soon as possible. You ask the supervisor to excavate the box further, and place it in the back of your truck. You promise the supervisor you will drive the box yourself to the University in the city nearby, because it is very important to preserve found treasures like this. The Contractor is not entitled to an extension of time, as no del

B.

You thank the supervisor for their action. You make sure the Site is secured and ask the Contractor to make an improvised barrier around the Site. You ask the Contractor to appoint its most trustworthy guards to set a perimeter. You inform the Employer and local authorities and you ask the Contractor to send you a notice in writing whereby it requests for a Variation (as this is needed for you to instruct the Contractor), thereby already in

C.

You inform the supervisor that given the sensitive nature of the findings, you need a formal and written notice as mentioned in Sub-Clause 4.24 second paragraph, otherwise you cannot give further instructions. You ask them to send it to you as soon as possible, because otherwise you are not able to entitle the Contractor to any extension of time and payment of costs.

D.

You immediately take action and give the instruction to the supervisor to make sure to cover this finding and till the excavation with material. You then redesign and make a determination (Sub-Clause 3.5) on a change of the Works — if needed — to make sure the execution can restart within days because of the need to finish this project.

Question 34

Regarding the FIDIC Silver Book (both editions), if a part of the Works is to be paid according to quantity supplied or work done, appropriate provisions must be included in the Particular Conditions. Is this statement true or false?

Options:

A.

True

B.

False

Question 35

(FIDIC Red Book (edition 2017) stipulates that the measurement shall be made as per the actual quantities executed at Site. Which one of the following statements is correct?)

Options:

A.

The measurement shall be always made of the net actual quantity of each item of the Permanent Works.

B.

The measurement shall be made of actual quantity of each item of the Permanent Works with allowance of shrinkage of the used materials.

C.

Measurements of the actual quantity of an item of the Permanent Works that was not specified in the Bill of Quantities, the Contractor will choose the appropriate price.

D.

None of the above are correct.

Question 36

Under the FIDIC Red, Yellow, and Silver Books (both editions), the Contractor has a contractual obligation to submit a Value Engineering Proposal. Such proposal shall be prepared at the cost of the Employer. Are both these statements true or false?

Options:

A.

True

B.

False

Question 37

Which two statements reflect an INCORRECT application of a Golden Principle?

Options:

A.

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.

B.

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.

C.

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.

D.

Deleting all the clauses in the General Conditions that refer to the DAAB/DAB.

Question 38

In the FIDIC Silver Book (edition 1999), if the Employer has instructed the Contractor as per Sub-Clause 8.6 to provide a revised programme to stay within Time of Completion, the Employer can claim additional costs. This only applies if the revised programme is still too slow to complete the Works within the Time for Completion. Is this statement true or false?

Options:

A.

True

B.

False

Question 39

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)

Options:

A.

The Contractor shall submit a Notice to the Engineer or the Employer reminding him to give its approval on the revised programme.

B.

The Engineer shall be deemed to have given a Consent and the revised programme shall be the Programme.

C.

The Contractor cannot proceed in accordance with the Programme.

D.

The Engineer is deemed to have no objection to use the revised programme submitted by the Contractor, for the Works.

Question 40

(Which of the following types of insurances belong to the basic (typical) scope of insurances? [2017 Edition] (2 correct answers apply)

Choose all of the correct answers (multiple possibilities).)

Options:

A.

Injury to persons and damage to property.

B.

Force Majeure Insurance.

C.

Insurance of Goods and other things brought to Site.

D.

Insurance for non-performance of the Works.

Question 41

(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))

Options:

A.

The Contractor shall submit a Notice to the Engineer or the Employer reminding him to give its approval on the revised programme.

B.

The Engineer shall be deemed to have given a Consent and the revised programme shall be the Programme.

C.

The Contractor cannot proceed in accordance with the Programme.

D.

The Engineer is deemed to have no objection to use the revised Programme for the Works.

Question 42

Which one of the following statements is NOT correct in respect of FIDIC Yellow Book (both editions)?

Options:

A.

The Contract typically becomes legally effective when the Employer issues the Letter of Acceptance to the Contractor.

B.

The General Conditions allocate the risks between the parties on a fair and equitable basis.

C.

A disproportionate amount of risks is allocated to the Contractor under the General Conditions.

D.

The Contractor provides plant and designs (except as otherwise specified) and executes the other works, all in accordance with the Contract, which includes its Proposal and the Employer ' s Requirements.

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Total 140 questions