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NEW QUESTION # 44
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. Details of the resources and methods to be adopted by the Contractor.
- B. A Programme for execution of the varied work.
- C. A description of the varied work.
- D. A description of the proposed design.
Answer: D
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 # 45
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. Specify Commencement Date in the Particular Conditions.
- B. Inform the Commencement Date to the tenderers by email, and attach that email in the list of Contract Documents.
- C. Specify Commencement Date in the Minutes of Meeting of Contract Negotiation.
- D. Specify Commencement Date in the Contract Agreement.
Answer: A,D
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 # 46
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)
- A. The sequence and timing of the remedial work.
- B. All internationally recognized holiday periods.
- C. The actual progress to date, any delay to such progress and the effects of such delay on other activities (if any).
- D. Only the delivery dates of Plant and Materials which have not been delivered on Site yet.
Answer: B,C
Explanation:
Under Sub-Clause 8.3 of the FIDIC Red and Yellow Books 2017, the revised programme must reflect:
The planned sequence and timing of works including recognized holidays (Option A) to ensure realistic scheduling.
The actual progress to date, delays, and impacts on subsequent activities (Option B) so that stakeholders can manage resources and risks effectively.
Option C (remedial work) is typically not part of the main programme but may be in a separate defect rectification schedule.
Option D is too narrow; the programme should include all activities, not only undelivered materials.
References:
FIDIC Red and Yellow Books 2017 Edition, Sub-Clause 8.3 - Programme
FIDIC Contract Manager Study Guide, Module on Time and Delay Management
NEW QUESTION # 47
Which one of the following statements is correct regarding the Provisional Sum under the FIDIC Red, Yellow, and Silver Books (edition 1999)?
- A. Each Provisional Sum shall not be used, in whole or in part, in accordance with instructions from the Engineer.
- B. The Contractor shall, when required by the Engineer, produce proof to substantiate how it has used the Provisional Sum.
- C. The Provisional Sum cannot be issued by instruction either by the Engineer (or Employer in case of FIDIC Silver Book).
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Option B is correct. Under FIDIC contracts, the Contractor must provide proof of how the Provisional Sum has been expended when requested by the Engineer. This ensures transparency and proper use of funds allocated as Provisional Sums.
Option A is incorrect; Provisional Sums are often used based on instructions from the Engineer or Employer.
Option C is incorrect because Provisional Sums are precisely intended to be used, in whole or in part, according to Engineer's or Employer's instructions.
References:
FIDIC Red, Yellow, and Silver Books 1999 Edition, Sub-Clause 13.2 - Provisional Sums FIDIC Contract Manager Study Guide, Module on Payment Procedures
NEW QUESTION # 48
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. No, because the Contractor has a duty to supply the Employer with every Document, given Sub-Clause
7.4. - B. No, according to Sub-Clause 5.7 provisional operation and maintenance manuals are always required.
- C. Yes, because otherwise the Contractor doesn't have to submit any Document until Completion of the Works as stated in Sub-Clause 1.8.
- D. 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.
Answer: D
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 # 49
In case a Variation is initiated by the Engineer for prompt implementation ...... [FIDIC Red, and Yellow Books, 2017 Editions] Choose all of the correct answers (multiple possibilities).
- A. ... the Contractor within 28 days after receiving such instruction shall submit to the Engineer a description of the varied work, a programme for its execution and a proposal for adjustment of the Contract Price.
- B. ... the Contractor may send a Notice to the Engineer, that the subject of the Variation was Unforeseeable (having regard to the scope and nature of the Works), hence, the Contractor is not to start implementing the varied work promptly.
- C. ... the Contractor is required to commence implementing the varied works and take records of all the details ( ... regarding the details of the varied works executed, expenditures incurred, and impact on progress etc.)
- D. ... the Contractor is required to commence implementing the varied works even if it would pose immediate hazard to the safety of public areas surrounding the Site
- E. ... the Contractor is not bound to start implementing the varied works right up until the price for the varied works is fully agreed (or determined)
Answer: A,C
Explanation:
Comprehensive and Detailed Explanation:
Option B is correct: When instructed to implement a Variation promptly, the Contractor must commence work and keep detailed records for subsequent valuation and impact assessment.
Option D is correct: The Contractor is required to submit, within 28 days, a description, programme, and price proposal relating to the Variation as part of contract procedures.
Option A is incorrect: The Contractor generally must proceed promptly regardless of dispute about foreseeability but may reserve rights via notices.
Option C is incorrect: Safety cannot be compromised; the Contractor should not undertake hazardous work without mitigation.
Option E is incorrect: The Contractor is generally bound to start work upon instruction even if the price is not yet agreed.
References:
FIDIC Red and Yellow Books 2017 Editions, Sub-Clause 3.5 - Variation Procedure FIDIC Contract Manager Study Guide, Module on Variations and Change Management
NEW QUESTION # 50
Which of the following statements are relevant to continuing effect claims? [FIDIC 2017 Edition] (2 correct answers apply)
- A. In case the Employer is the Claiming Party, then he/she is not obliged to submit interim claims.
- B. In general, a fully detailed Claim has to be submitted within 84 days after becoming aware of the event giving rise to the claim.
- C. Continuing effect claims shall be noticed in the same way as "normal" claims, within 28 days after the Claiming Party became aware of the event or circumstance.
- D. In case the Contractor is the Claiming Party, when he/she misses to submit even just a single interim claim, then his/her entitlement is lost.
Answer: B,C
Explanation:
Comprehensive and Detailed Explanation:
Option A is correct: Continuing effect claims (claims where the event's impact continues over time) require notices like other claims, typically within 28 days of awareness.
Option D is correct: The fully detailed claim submission generally must be within 84 days of becoming aware of the event, allowing the Claiming Party to elaborate on the claim.
Option B is incorrect; Employer claims also require timely notification.
Option C is incorrect; missing a single interim claim does not necessarily result in losing entitlement if the contract allows for correction or continued claims.
References:
FIDIC Red, Yellow, and Silver Books 2017 Edition, Sub-Clause 20.1 - Claims and Notices FIDIC Contract Manager Study Guide, Module on Claims and Continuing Effects
NEW QUESTION # 51
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?
- A. 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.
- 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 Contractor submits a Value Engineering proposal, in which it proposed to change the colour of the outdoor paint. The Engineer approved the proposal.
- D. The Engineer requests a proposal regarding a change in type of windows and doors of the business centre.
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
Option A is NOT a Variation because it originates from a Value Engineering proposal by the Contractor, not from Employer or Engineer instruction or request.
Options B, C, and D are all variations initiated by the Employer or Engineer.
References:
FIDIC Red Book 1999 Edition, Clause 3 - Variations
FIDIC Contract Manager Study Guide, Module on Variations
NEW QUESTION # 52
If the Engineer is required to obtain the Employer's prior approval to issue determinations (including such requirement in the Particular Conditions) and such approval was not given by the Employer, what possible options are at stake for the Engineer to proceed? [1999 Edition] (2 correct answers apply) Choose all of the correct answers (multiple possibilities).
- A. The Engineer should refer the matter in subject to the DAB.
- B. Remain silent and not do anything in the subject.
- C. Informing the Contractor of their inability of issuing the determination, in lack of the Employer's necessary approval.
- D. Issuing the determination to the Contractor in the form and with the content agreeable to the Employer, with a remark, that it is the Employer's determination and not the Engineer's determination.
Answer: C,D
Explanation:
Under the FIDIC Red Book 1999 Edition, the Engineer is generally responsible for issuing determinations on claims and contract matters. However, if the Particular Conditions require the Engineer to obtain the Employer's prior approval before issuing such determinations, the Engineer's options become limited if that approval is not granted.
* Option C (Issuing the determination to the Contractor in the form and with the content agreeable to the Employer, with a remark that it is the Employer's determination and not the Engineer's determination)is a practical approach often taken. The Engineer may issue the determination as directed or approved by the Employer but must clarify that it reflects the Employer's decision rather than the Engineer's independent determination.
* Option D (Informing the Contractor of their inability to issue the determination, due to lack of Employer's approval)aligns with transparency and procedural correctness. The Engineer should notify the Contractor if they cannot proceed with the determination, explaining the reason to avoid misunderstanding or delay.
* Option A (Remain silent and do nothing)isnot appropriate, as it may cause project delays and disputes.
* Option B (Referring the matter directly to the Dispute Adjudication Board)without a determination from the Engineer is not standard procedure under the 1999 edition. The Engineer's determination or failure to determine generally triggers the dispute resolution process, but referral is normally after due process, including issuing or attempting to issue a determination.
Hence,Options C and Dare the appropriate courses of action.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 3.5 - Determinations
FIDIC Red Book 1999 Edition, Particular Conditions (typical clauses on Engineer's authority) FIDIC Contract Manager Study Guide, Module on Claims and Dispute Resolution
NEW QUESTION # 53
For the FIDIC Red Book (both editions), the Contractor is required to submit a progress report monthly.
When does the Contractor's reporting requirement end?
- A. After issuance of the Performance Certificate.
- B. At the Date of Completion of the Works (irrespective of whether there is minor outstanding work to be performed).
- C. Until all outstanding works as stated in the Taking-Over Certificate are completed.
- D. After issuance of the Taking-Over Certificate.
Answer: C
Explanation:
The Contractor's obligation to submit progress reports continues until all outstanding work identified in the Taking-Over Certificate has been completed. The Taking-Over Certificate signals substantial completion but may allow for outstanding minor works. Reporting is essential to monitor progress on these outstanding works.
The Performance Certificate relates to final contract completion but reporting usually ends earlier only after all works are completed.
Therefore, Option D is correct.
References:
FIDIC Red Book 1999 & 2017 Editions, Sub-Clause 4.21 - Progress Reports FIDIC Contract Manager Study Guide, Module on Communication and Reporting
NEW QUESTION # 54
Applying FIDIC Silver Book (edition 1999), which one of the following elements shallnotform part of the time Programme/revised programme?
- A. Review periods under Sub-Clause 5.2.
- B. The intended order of the works.
- C. The sequence and timing of inspections and tests.
- D. The remedial work (if any) instructed under Sub-Clause 7.6.
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
According to the FIDIC Silver Book, 1999 Edition (The Conditions of Contract for EPC/Turnkey Projects), the Contractor is required under Sub-Clause 8.3 ("Programme") to submit a time programme that illustrates the sequence and timing of the works, including milestones and key events. The intended order of the works (Option A), sequence and timing of inspections and tests (Option B), and review periods (Option D) related to contract management processes such as approval of design or submissions (Sub-Clause 5.2) are integral to effective scheduling and coordination.
However,remedial work instructed under Sub-Clause 7.6, which concerns remedying defects or damage, is generally not part of the initial or revised programme. Instead, remedial works are typically handled as separate tasks or incorporated into specific defect liability or rectification schedules after the main programme has been executed. Such remedial works arise from defects liability obligations and do not belong to the original or revised time programme used to plan the main construction phases.
This distinction is important because the programme reflects planned works execution, whereas remedial work is reactive and may be scheduled separately under defects liability clauses or final project close-out arrangements.
References:
FIDIC Silver Book 1999 Edition, Clause 8.3 - Programme
FIDIC Silver Book 1999 Edition, Clause 7.6 - Remedial Work
FIDIC Contract Manager Study Guide, Module on Time and Delay Management
NEW QUESTION # 55
Under the FIDIC Red Book (edition 2017), the Engineer has suspended works to come to a change of the design of a part of the Works. After expiry of 84 days of suspension, the Contractor gave notice thereof.
Following this notice, the suspension was not lifted within 28 days. What two statements are correct in such a situation?
- A. Under the Contract the Parties cannot agree on further suspension and the Contractor may immediately terminate the Contract if it affects the whole Works.
- B. The Contractor may omit the affected part of Works and deny to carry out such Work going forward, but only after it has given a second notice to the Engineer.
- C. The Contractor may terminate the Contract if it affects the whole Works, but only after it has given a second notice to the Engineer.
- D. The Contractor cannot terminate the Contract.
Answer: A,C
Explanation:
Under FIDIC Red Book 2017, if the Engineer suspends works for more than 84 days and the Contractor notifies the Engineer, but the suspension is not lifted within 28 days, the Contractor may terminate the contract if the suspension affects the whole of the Works (Option A).
Additionally, the Contractor must give a second notice before termination (Option C). This process ensures proper communication and adherence to contractual procedures.
Option B is incorrect; termination is allowed under specified conditions.
Option D is incorrect; omission of work is not generally permitted without formal termination.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 8.9 - Suspension by Engineer
FIDIC Contract Manager Study Guide, Module on Suspension and Termination
NEW QUESTION # 56
Through which two of the following documents may the Employer give information to the Contractor of a planned timetable of meetings such as management meetings, site meetings, technical meetings, and progress meetings?
Choose all of the correct answers (multiple possibilities).
- A. Employer's Requirements
- B. Specification
- C. Special Conditions
- D. General Conditions of Contract
Answer: A,C
Explanation:
The timetable for meetings is usually set out in the Special Conditions (Particular Conditions) and/or the Employer's Requirements, which define project-specific administrative and management arrangements.
Special Conditions customize the General Conditions to the project and often specify meeting schedules.
Employer's Requirements detail the Employer's expectations, including communication protocols and meeting timetables.
The General Conditions (Option A) are standard and do not include project-specific meeting schedules.
The Specification (Option B) mainly covers technical requirements, not administrative matters like meetings.
References:
FIDIC Red and Yellow Books 1999 and 2017 Editions, Special Conditions and Employer's Requirements Sections FIDIC Contract Manager Study Guide, Module on Communication and Reporting
NEW QUESTION # 57
Under the FIDIC Red Book, which one of the following statements is correct for a claim by the Contractor?
- A. It is the Employer's Representative who must first respond to the claim by the Contractor.
- B. The Engineer's response to a claim by the Contractor is final and binding upon the Employer.
- C. 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.
- D. 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.
- E. 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.
Answer: C
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 # 58
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)
- A. The Employer may sell or otherwise dispose any remaining items and reinstate the Site at the Contractor's Cost.
- B. 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.
- 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 Engineer cannot sell or otherwise dispose any remaining items and reinstate the Site at the Contractor's Cost.
Answer: A,C
Explanation:
* Option Ais correct: The Employer may sell or dispose of any items left by the Contractor and reinstate the Site, recovering costs from the Contractor.
* Option Cis correct: The Employer is entitled to recover costs for clearing, reinstatement, and disposal exceeding proceeds from sale.
* Option Bis incorrect; the Engineer does not hold this authority, but the Employer does under the contract.
* Option Dis incorrect; if the Contractor fails to clear the Site, the Employer may take action to protect the Site.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 8.7 - Contractor's Use of Site
FIDIC Contract Manager Study Guide, Module on Contract Administration Procedures
NEW QUESTION # 59
Under the FIDIC Red and Yellow Books (edition 1999), which two of the following statements are correct regarding the issuance of Interim Payment by the Engineer?
(Choose all correct answers - multiple possibilities)
- A. If the Employer considers itself entitled to claim against the Contractor, notice and particulars must first be submitted under Sub-Clause 2.5. The Employer's entitlement is then to be agreed or determined by the Engineer, and then, incorporated as a deduction in a Payment Certificate.
- B. The Employer is not bound by the Certificate issued by the Engineer.
- C. The Employer is bound by the Certificate issued by the Engineer, and must make payment in full, except for any compensation arising from any claim which the Employer may have against the Contractor.
- D. The Employer is bound by the Certificate issued by the Engineer and must make payment in full, irrespective of any entitlement to compensation arising from any claim which the Employer may have against the Contractor.
Answer: A,C
Explanation:
Under the FIDIC Red Book and Yellow Book, 1999 editions, the Engineer issues Interim Payment Certificates certifying the amounts due to the Contractor for completed works and materials on site (Sub- Clause 14.6). The Employer is generally bound by the Payment Certificate and must pay accordingly, except where there is a lawful set-off or compensation claim against the Contractor.
Option A is correct because the Employer must pay the amount certified except for compensation claims that may be offset against the payment (Sub-Clause 14.6).
Option D is also correct: If the Employer intends to claim against the Contractor (e.g., for damages or defects), it must notify the Contractor under Sub-Clause 2.5 and provide particulars. The Engineer then assesses and decides on the claim and incorporates any agreed deductions into the Payment Certificate.
Option B is incorrect because the Employer is indeed bound by the Payment Certificate unless lawful deductions or disputes arise.
Option C is incorrect as the Employer can withhold amounts due for compensation claims once these are properly notified and substantiated.
References:
FIDIC Red and Yellow Books, 1999 Edition, Sub-Clause 14.6 - Interim Payments FIDIC Red and Yellow Books, 1999 Edition, Sub-Clause 2.5 - Employer's Claims FIDIC Contract Manager Study Guide, Module on Payment Procedures and Financial Management
NEW QUESTION # 60
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. 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.
- C. Receipt of a statement and supporting documents.
- D. Receipt of a statement via a letter showing the amounts to which the Contractor considers itself to be entitled.
Answer: B,C
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 # 61
In a construction project using the FIDIC Silver Book (edition 1999), if the Parties prefer the dispute board to be appointed on an "ad-hoc" basis instead of as a standing Dispute Avoidance and Adjudication Board (DAAB), what is it called? (1 correct answer applies)
- A. Ad-hoc DAAB
- B. Ad-hoc arbitration
- C. DAB
- D. Ad-hoc DB
Answer: C
Explanation:
Under FIDIC terminology, an ad-hoc Dispute Board is known as a DAB (Dispute Adjudication Board), which is appointed for specific disputes as they arise, rather than standing continuously.
The DAAB is a standing board appointed for the project duration, providing continuous dispute avoidance and adjudication.
Option D refers to arbitration, which is a different dispute resolution method.
References:
FIDIC Silver Book 1999 Edition, Clause 20 - Dispute Adjudication Board
FIDIC Contract Manager Study Guide, Module on Dispute Boards and Resolution
NEW QUESTION # 62
Towards the end of implementing a varied work (initiated originally by the Contractor as a "Value Engineering Proposal", relevant designs provided by the Contractor) it turned out, that there is some part of it not complying with the otherwise prevailing standards. Which statements are correct in this situation? [FIDIC Red Book, 2017 Edition] Choose all of the correct answers (multiple possibilities).
- A. In this situation, the whole of the varied works should be removed, and the original technical content reinstated.
- B. In case it is necessary, the Contractor shall prepare designs for works subject to the Value Engineering, hence, it is up to the Contractor to ensure that the works are fit for the purposes, including that the designs are correct, regardless of any approval or "no-objection" of the Engineer.
- C. Since the design was approved by the Engineer, the Contractor might not be found responsible for such discrepancy, hence, to be fully compensated.
- D. The Contractor shall immediately rectify, ensuring, that the varied work fully complies with the prevailing standards.
Answer: B,D
Explanation:
Option C is correct: The Contractor is obligated to rectify any non-compliance with prevailing standards promptly.
Option D is correct: The Contractor carries responsibility for design fitness and correctness, even if the Engineer has approved or not objected to the design.
Option A is incorrect; Engineer approval does not absolve the Contractor from responsibility for defective design or works.
Option B is not necessarily required; only non-compliant parts need correction, not entire varied works.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 4.1 and Clause 13 - Contractor's Obligations and Variations FIDIC Contract Manager Study Guide, Module on Variations and Design Responsibilities
NEW QUESTION # 63
Which two statements are true under the FIDIC Red Book (edition 1999)?
(Choose all of the correct answers - multiple possibilities)
- A. The Performance Certificate constitutes acceptance of the Works and full performance of all obligations of each Party.
- B. The Engineer shall issue the Performance Certificate within 28 days at the latest: by the end of the Defects Notification Periods, and once the Contractor has supplied all the Contractor's Documents and completed and tested all Works including remedying any defects in accordance with the Contract.
- C. The Performance Certificate is deemed to be issued on fulfilment of certain conditions stated in the respective Sub-Clause.
- D. The Performance Certificate is deemed to constitute the acceptance of the Works.
Answer: B,C
Explanation:
Under the FIDIC Red Book 1999, the Performance Certificate marks the end of the Contractor's obligations under the contract (Sub-Clause 11.9). The Engineer must issue this certificate once the Defects Notification Period has ended, all Contractor's Documents are submitted, and all works including defect rectification have been completed and tested.
Option C is correct because the Engineer is required to issue the Performance Certificate within 28 days after these conditions are met.
Option D is correct as the certificate is conditional upon fulfilling specific contract requirements (e.g., completion of works, submission of documents).
Option A is incorrect because acceptance of works usually happens earlier (e.g., taking-over certificate); the Performance Certificate represents completion of all contractual obligations, not just acceptance.
Option B is incorrect as the Performance Certificate confirms contractual completion but does not necessarily imply full mutual performance beyond contract terms.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 11.9 - Performance Certificate
FIDIC Contract Manager Study Guide, Module on Project Close-Out and Final Account
NEW QUESTION # 64
Under both FIDIC Yellow Book (YB) and Silver Book (SB) (edition 1999), if the Engineer (YB) / Employer (SB) instructs the Contractor based on Sub-Clause 8.6 to provide a revised programme, the acceptance by the Engineer (YB) / Employer (SB) of a revised programme with a completion within Time of Completion entitles the Contractor to a payment of the needed extra costs. Is this statement true or false?
- A. True
- B. False
Answer: B
Explanation:
This statement is false. Acceptance of a revised programme that shows completion within the Time for Completion does not automatically entitle the Contractor to extra payment. The Contractor must demonstrate additional costs arising from the instruction or circumstances to claim payment.
The acceptance of a compliant programme is a scheduling and administrative matter, not a compensation guarantee.
References:
FIDIC Yellow and Silver Books 1999 Editions, Sub-Clause 8.6 - Revised Programme FIDIC Contract Manager Study Guide, Module on Claims and Payment
NEW QUESTION # 65
You are the Contract Manager for the Engineer in a highway project using FIDIC Red Book (edition 1999).
There is a Schedule of cost indexation included in the Contract. The project must be completed by 31 December of this year. If the Contractor fails to complete the Works by then, how will the adjustment of prices take place thereafter?
- A. The current index or price.
- B. Either the current index/price, or index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works, whichever agreed by Parties.
- C. Each index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works.
- D. Either the current index/price, or index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works, whichever is more favourable to the Employer.
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
Under FIDIC Red Book 1999, price adjustments after the Time for Completion are based on the indices or prices applicable on the date 49 days before the expiry of the Time for Completion, not the current index. This prevents the Contractor from benefiting from price fluctuations after the contract period.
This clause ensures fairness by locking the price basis as of a fixed reference date, protecting the Employer from increased costs due to delays.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 13.8 - Adjustments for Changes in Cost FIDIC Contract Manager Study Guide, Module on Price Adjustment
NEW QUESTION # 66
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