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NEW QUESTION # 21
You are the Contract Manager of the Contractor in a building project. The Contract has been awarded to your firm, but the Engineer has not been selected. The Contract Agreement states that the Commencement Date shall be notified by the Engineer, which must be done within 14 days after the signing of the Contract Agreement. The Employer requested your firm to commence works on the 14th day after signing the Contract Agreement. Your director, Y, wants to wait with commencing the works until the Engineer has been selected or until the 42 days since the date your firm receives Letter of Acceptance. Is Y correct?
- A. Yes
- B. No
Answer: B
Explanation:
Y is not correct. The Contractor's obligation to commence works depends on the Commencement Date notification as per the contract. If the Employer requests commencement on the 14th day after signing, and the contract allows or the Engineer has not yet notified otherwise, the Contractor should comply unless formally instructed otherwise.
Delaying work beyond the contractual or Employer's instruction without valid cause may be considered breach of contract and could lead to claims against the Contractor.
References:
FIDIC Red, Yellow, and Silver Books 2017 Edition, Sub-Clause 8.1 - Commencement of Works FIDIC Contract Manager Study Guide, Module on Contract Formation and Execution
NEW QUESTION # 22
Which two of the following statements are correct regarding Dispute under the FIDIC Red, Yellow, and Silver Books (edition 2017)?
Choose all of the correct answers (multiple possibilities)
- A. In case the Engineer refuses to issue a Performance Certificate or to issue one with a correct date under Sub-Clause 11.9, and the Contractor has disagreed with the requested entitlement or relief in connection with this refusal, Dispute shall be deemed to have arisen.
- B. The Dispute must be submitted to the Dispute Avoidance and Adjudication Board (DAAB) within 42 days, otherwise the NOD is deemed to have lapsed and is no longer valid.
- C. If a Party is dissatisfied with the determination and has given Notice of Dissatisfaction (NOD) to the other party within a strict 28-day time limit, a Dispute arises and either Party may proceed under Sub- Clause 21.4 to obtain a DAAB decision on it.
- D. Both 'Disagreement' and 'Dispute' are defined terms under the Conditions of Contract.
Answer: A,C
Explanation:
Option A is correct. Under Sub-Clause 11.9 (Performance Certificate) refusal or incorrect issuance by the Engineer, combined with disagreement by the Contractor, may cause a Dispute to arise.
Option B is correct. If a Party is dissatisfied with a determination, it must give a Notice of Dissatisfaction (NOD) within 28 days to escalate the matter to a Dispute, allowing either Party to refer it to the DAAB as per Sub-Clause 21.4.
Option C is incorrect. The contract does not specify a 42-day time limit for submission to DAAB after NOD; timelines vary by contract and stage.
Option D is incorrect. 'Disagreement' is not a formally defined term in FIDIC contracts, whereas 'Dispute' is.
References:
FIDIC Red, Yellow, Silver Books 2017 Edition, Sub-Clause 11.9 and Clause 21 - Claims, Disputes, and Adjudication FIDIC Contract Manager Study Guide, Module on Dispute Resolution
NEW QUESTION # 23
Which one statement is correct regarding the FIDIC Red Book (edition 2017)?
- A. No Data other than required by the General Conditions of Contract may be entered in the Contract Data.
- B. Instructions to Tenderers are part of the Employer's Requirements.
- C. General Conditions of Contract cannot be amended as it may imbalance the obligations and rights of the Parties.
- D. 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.
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
In the FIDIC Red Book 2017, Instructions to Tenderers are part of the tender documents but are distinct from the Employer's Requirements. They guide tenderers on how to prepare and submit their tenders. Specifically, Instructions to Tenderers may require tenderers to provide detailed information about their organization, key personnel, and the Contractor's Representative (see Sub-Clause 4.3 on Contractor's Representative and Sub- Clause 6.12 on Key Personnel), which is essential for evaluating the capability and resources of the tenderer.
Option A is incorrect because Instructions to Tenderers are separate from Employer's Requirements; the latter define the scope and technical needs of the project.
Option B is incorrect; Contract Data may include specific data relevant to the particular project beyond just the General Conditions, including amendments and project-specific information.
Option D is incorrect because the General Conditions can be amended through the Particular Conditions (within limits), provided the amendments are balanced and agreed upon by both Parties.
References:
FIDIC Red Book 2017, Guide to Tendering Documents
FIDIC Red Book 2017, Sub-Clause 4.3 - Contractor's Representative
FIDIC Red Book 2017, Sub-Clause 6.12 - Key Personnel
FIDIC Contract Manager Study Guide, Module on Introduction to FIDIC Contracts
NEW QUESTION # 24
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. The Contractor shall immediately rectify, ensuring, that the varied work fully complies with the prevailing standards.
- 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. In this situation, the whole of the varied works should be removed, and the original technical content reinstated.
Answer: A,B
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 # 25
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 is not bound to start implementing the varied works right up until the price for the varied works is fully agreed (or determined)
- 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 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.
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 # 26
Under the FIDIC Red Book (edition 1999): the Contractor submitted Final Statement in accordance with the Contract and the Contractor wants to correct it. Can the Contractor correct the Final Statement?
- A. No
- B. Yes
Answer: B
Explanation:
According to the FIDIC Red Book 1999,Sub-Clause 14.10 - Application for Final Payment Certificateand related procedures allow the Contractor to submit the Final Statement, which includes the final account of all sums due.
If after submission the Contractor identifies errors or omissions in the Final Statement, the Contractor is generally entitled tosubmit corrections or adjustmentsto that statement before the issuance of the Final Payment Certificate. This ensures that the final account accurately reflects all amounts due.
The Engineer reviews the Final Statement and may seek clarifications or adjustments. The contract typically allows the Contractor to correct or revise the Final Statement as part of this review process.
However, once the Final Payment Certificate is issued and accepted by the parties, it becomes more difficult for the Contractor to amend the Final Statement without formal agreement or dispute resolution.
Hence, prior to certification, the Contractor can correct the Final Statement.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 14.10 - Application for Final Payment Certificate FIDIC Contract Manager Study Guide, Module on Contract Administration Procedures
NEW QUESTION # 27
When is the Employer obliged to return the Performance Security (PS) under the FIDIC Red Book (edition
1999)?
- A. Within 21 days after the issuance of the Taking-Over Certificate.
- B. Without undue delay after the issuance of the Performance Certificate.
- C. Within 21 days after the issuance of the Performance Certificate.
- D. Without undue delay after the issuance of the Taking-Over Certificate.
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
Under FIDIC Red Book 1999, the Performance Security (or Performance Guarantee) is held to ensure the Contractor's performance during the defects liability period. The security is typically released only after the Employer issues the Performance Certificate, which confirms the completion of defects liability obligations and that the Contractor has fulfilled the contract.
The contract commonly specifies a fixed period (often 21 days) within which the Employer must return the Performance Security after issuance of the Performance Certificate (Option D). The Taking-Over Certificate (Options A and C) marks substantial completion but does not end the Contractor's obligations for defects.
References:
FIDIC Red Book 1999, Sub-Clause 10.2 - Taking-Over Certificate
FIDIC Red Book 1999, Sub-Clause 10.4 - Performance Certificate
FIDIC Red Book 1999, Sub-Clause 10.5 - Release of Performance Security
FIDIC Contract Manager Study Guide, Module on Payment Procedures and Financial Management
NEW QUESTION # 28
Which two of the following statements are correct regarding the dayworks under FIDIC Red, Yellow, and Silver Books (both editions)?
Choose all of the correct answers (multiple possibilities).
- A. The dayworks related Sub-Clause is also applicable to other types of works.
- B. If a Daywork Schedule is not included in the Contract, the Sub-Clause related to dayworks shall not apply.
- C. The Engineer (or the Employer in case of FIDIC Silver Book) may instruct that "a Variation shall" be executed on a daywork basis.
- D. The dayworks related Sub-Clause is only used for remeasurement in the FIDIC Red Book (both editions) only.
Answer: A,C
Explanation:
Dayworksrefer to works executed on a time basis (e.g., labor and plant) with payment made according to predetermined rates rather than a lump sum or unit rate contract price.
* Option Aisincorrect. Even if a Daywork Schedule is not initially included, the dayworks Sub-Clause (e.g., Sub-Clause 13.7 in Red and Yellow Books, 13.8 in Silver Book 1999) still applies to dayworks ordered during the contract execution. The schedule facilitates pricing, but the Sub-Clause governs the method and conditions for dayworks.
* Option Biscorrect. The dayworks Sub-Clause is applicable not only to traditional construction works but can also be applied to other types of works, such as variations or additional works that cannot be precisely measured or foreseen and are charged on a time basis.
* Option Cisincorrect. The dayworks Sub-Clause is used in all FIDIC standard forms (Red, Yellow, and Silver Books), not only for remeasurement in the Red Book. In the Yellow Book (plant and design- build) and Silver Book (EPC/turnkey), dayworks are similarly applicable for certain variations or unforeseen works.
* Option Discorrect. The Engineer (in Red and Yellow Books) or the Employer (in the Silver Book, where the Engineer's role is limited) may instruct that a variation be executed on a daywork basis. This instruction is typically used when the scope or quantity cannot be reasonably pre-determined.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 13.7 - Dayworks
FIDIC Yellow Book 2017 Edition, Sub-Clause 13.7 - Dayworks
FIDIC Silver Book 1999 Edition, Sub-Clause 13.8 - Dayworks
FIDIC Contract Manager Study Guide, Module on Contract Administration Procedures
NEW QUESTION # 29
Applying FIDIC Silver Book (edition 1999), which one of the following elements shallnotform part of the time Programme/revised programme?
- A. The remedial work (if any) instructed under Sub-Clause 7.6.
- B. The sequence and timing of inspections and tests.
- C. Review periods under Sub-Clause 5.2.
- D. The intended order of the works.
Answer: A
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 # 30
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 Minutes of Meeting of Contract Negotiation.
- D. Specify Commencement Date in the Particular Conditions.
Answer: B,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 # 31
Which one of the following statements regarding drafting contracts based on FIDIC Books is correct?
- A. 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?
- B. 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.
- 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. The Form of Contract is chosen by the Contractor and imposed by him on the Employer, who tenders on that basis.
Answer: A
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 # 32
Which one of the following documents constitutes a contract and is considered binding on both parties, when the Employer wants to award the Contract to the tenderer?
- A. Letter of Intent
- B. Memorandum of understanding
- C. Letter of Acceptance
- D. Letter of Intent & Memorandum of understanding
Answer: C
NEW QUESTION # 33
Which of the following FIDIC contract forms require certification in the payment process? (2 correct answers apply) Choose all of the correct answers (multiple possibilities).
- A. FIDIC Conditions of Contract for Construction ("Red Book").
- B. FIDIC Conditions of Contract for EPC/Turnkey Projects ("Silver Book").
- C. FIDIC Conditions of Contract for Plant and Design Build ("Yellow Book").
Answer: A,C
Explanation:
Comprehensive and Detailed Explanation:
Options A and B are correct: Both the Red and Yellow Books require the Engineer to certify payments before the Employer pays the Contractor.
Option C (Silver Book) typically places the risk on the Contractor and often provides for payment without Engineer certification, reflecting the turnkey nature of the contract.
References:
FIDIC Red and Yellow Books 1999 & 2017 Editions, Clauses on Payment Certification FIDIC Silver Book 1999 & 2017 Editions - Payment Provisions FIDIC Contract Manager Study Guide, Module on Payment Procedures
NEW QUESTION # 34
Which of the following form a Contractor's entitlement, in case the Contractor does not receive an interim payment within the allocated contractual deadline for payment? (2 correct answers apply) Choose all of the correct answers (multiple possibilities).
- A. Right after the expiry of the payment deadline, the Contractor may terminate the contract.
- B. The Contractor is entitled to suspend the works or reduce the rate of progress of the work, after giving a due Notice (21 days) about this intention.
- C. In case the Employer paid the Contractor late, the Contractor becomes entitled to receive financing charges applying the % included in the Contract Data (if this is not stated, then applying the percentage as included under the corresponding Sub-Clause).
- D. Beyond receiving the financing charges, the Contractor has no further entitlements in such a case.
- E. If the payment is not made within the time period required, after the expiry of such period, from the next day onwards, the Contractor is entitled to suspend all his/her activities on Site.
Answer: B,C
Explanation:
Option C is correct: The Contractor is entitled to financing charges (interest) on late payments, calculated as per the percentage specified in the Contract Data or corresponding Sub-Clause.
Option D is correct: The Contractor can suspend works or reduce progress after giving due notice, usually 21 days, if payments are not made on time.
Option A is incorrect; termination is not automatic right after the payment deadline expires.
Option B is incorrect; suspension requires prior notice rather than immediate action.
Option E is incorrect because the Contractor has additional remedies such as suspension, beyond just financing charges.
References:
FIDIC Red, Yellow, Silver Books 1999 & 2017 Editions, Sub-Clause 14.8 - Payment of Retention Money and Financing Charges FIDIC Contract Manager Study Guide, Module on Payment Procedures and Remedies
NEW QUESTION # 35
The procurement process of a project executed based on any FIDIC Contract model is exactly the same in terms of definitions, time and steps, which makes it universal and more easy to use worldwide. Is this statement true or false?
- A. False
- B. True
Answer: A
Explanation:
This statement is false. While FIDIC Contracts provide standardized contractual frameworks, procurement processes vary widely depending on local laws, employer requirements, contract editions, and project specifics. Definitions, timelines, and procurement steps may differ between models and jurisdictions, making the procurement process not universally identical.
The FIDIC contracts are adaptable tools, not rigid procurement procedures, so users must tailor procurement to local and project needs.
References:
FIDIC Contract Manager Study Guide, Module on Contract Formation and Procurement Strategies Various National Procurement Regulations and Practices
NEW QUESTION # 36
Which one of the following statements is NOT correct in respect of FIDIC Yellow Book (both editions)?
- A. 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.
- B. A disproportionate amount of risks is allocated to the Contractor under the General Conditions.
- C. The Contract typically becomes legally effective when the Employer issues the Letter of Acceptance to the Contractor.
- D. The General Conditions allocate the risks between the parties on a fair and equitable basis.
Answer: B
Explanation:
Option C is NOT correct. FIDIC Yellow Book General Conditions aim to allocate risks fairly and equitably between the Employer and Contractor. The contract balances risks according to who is best able to manage them. It does not impose a disproportionate risk burden on the Contractor.
Options A, B, and D are correct statements describing typical contract formation, risk allocation, and Contractor's design and execution responsibilities.
References:
FIDIC Yellow Book 1999 and 2017 Editions - Introduction and Risk Allocation Clauses FIDIC Contract Manager Study Guide, Module on Introduction to FIDIC Contracts
NEW QUESTION # 37
You are the Contract Manager of the Engineer in a condominium project under FIDIC Yellow Book (edition
2017), with Time for Completion of 5 months.
The Contractor received a Letter of Acceptance on 1 May 2022. The Contract Agreement was signed on 1 June 2022. The Contract Agreement states that the Commencement Date shall be notified by the Engineer, but it shall be no later than 14 days after the signing of the Contract Agreement, subject to the issuance of the construction permit.
1 July 2022 is the first day the Engineer was at Site. On the same day, the Engineer issued a Notice to the Contractor that the Commencement Date shall be 15 July 2022. However, the construction permit was issued only on 1 August 2022.
The Project was completed on 1 December 2022. After completion, the Employer submitted a claim for Delay Damages. Following consultations, the Parties could not reach agreement on the Commencement Date.
What is the correct Commencement Date?
- A. 15 June 2022
- B. 15 July 2022
- C. 12 June 2022
- D. 1 August 2022
Answer: D
Explanation:
According to the FIDIC Yellow Book 2017, the Commencement Date is the date notified by the Engineer as the date on which the Contractor shall start the execution of the Works (Sub-Clause 8.1). In this case, although the Engineer notified 15 July 2022 as the Commencement Date, it was subject to the issuance of the construction permit. Since the construction permit was only obtained on 1 August 2022, work could not legally commence before that date.
FIDIC recognizes that the Contractor cannot be expected to start before all necessary permissions are granted.
Hence, the effective Commencement Date must be the earliest date on which the Contractor can legally commence work, i.e., the date when the permit was issued (1 August 2022). The contract's requirement that the Commencement Date notification occur no later than 14 days after signing is subject to actual readiness conditions (permit availability).
Therefore, for purposes of delay and completion, the Commencement Date is 1 August 2022. This affects the calculation of the Time for Completion and any delay claims accordingly.
References:
FIDIC Yellow Book 2017 Edition, Sub-Clause 8.1 - Commencement of Works
FIDIC Yellow Book 2017 Edition, Sub-Clause 2.1 - Right of Access to Site and Permits FIDIC Contract Manager Study Guide, Module on Contract Formation and Execution
NEW QUESTION # 38
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