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NEW QUESTION # 57
Which two statements are true under the FIDIC Red Book (edition 1999)?
(Choose all of the correct answers - multiple possibilities)
- A. 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.
- B. The Performance Certificate is deemed to be issued on fulfilment of certain conditions stated in the respective Sub-Clause.
- C. The Performance Certificate is deemed to constitute the acceptance of the Works.
- D. The Performance Certificate constitutes acceptance of the Works and full performance of all obligations of each Party.
Answer: A,B
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 # 58
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. 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.
- B. The Contractor shall revise the Programme only by request from the Engineer or the Employer (in case of FIDIC Silver Book).
- 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. To accurately reflect the actual progress of the Works, but only if any Programme ceases to reflect actual progress with at least 42 days.
Answer: A,C
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 # 59
In the FIDIC Silver Book (both editions), the Notice of the Commencement Date will be informed by whom?
(1 correct response applies)
- A. The Employer's Representative
- B. The Engineer
- C. The Employer
- D. The Engineer's Resident Engineer
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
In the FIDIC Silver Book (1999 and 2017 editions), which is tailored for EPC/Turnkey contracts, the Employer is responsible for notifying the Contractor of the Commencement Date (Sub-Clause 8.1). Unlike other FIDIC contracts where the Engineer might notify commencement, the Silver Book places more responsibility on the Employer due to the nature of the contract where the Contractor is largely responsible for design and execution with fewer Engineer roles.
The Employer's formal notification of the Commencement Date signals the official start of the Contractor's obligations and triggers timelines under the contract.
The Engineer or Resident Engineer typically does not issue such notice in the Silver Book framework.
References:
FIDIC Silver Book 1999 and 2017 Editions, Sub-Clause 8.1 - Commencement of Works FIDIC Contract Manager Study Guide, Module on Contract Formation and Execution
NEW QUESTION # 60
Which one statement regarding the adjustment of the Contract Price as mentioned in Sub-Clause 13.8 of FIDIC Silver Book (edition 1999) is correct?
- A. If the Contract Price is to be adjusted for rises and falls in the cost of labour, the Contractor is entitled to compensation in such a way that all rises and falls in the costs are compensated fully.
- B. The Particular Conditions can provide a calculation method or refer to a specific set of index for adjustments following Sub-Clause 13.8. This can result in lower adjustments of the Contract Price than the actual changes in the costs of labour and/or Goods.
- C. The Particular Conditions can provide a calculation method or refer to a specific set of index for adjustments following Sub-Clause 13.8. Only the Base Date can be taken as the date from which the adjustment should be calculated from.
- D. If Particular Conditions provide a calculation method or refer to a specific set of index for adjustments following Sub-Clause 13.8, it can only apply to rises or falls in the costs of labour and Goods.
Answer: B
Explanation:
Sub-Clause 13.8 of the FIDIC Silver Book (1999) allows the Particular Conditions to specify a formula or indices for adjusting the Contract Price for rises and falls in labour and Goods costs. The method set forth may not fully compensate for actual cost changes - it can be lower than the real fluctuations - reflecting practical and commercial considerations.
Option B is correct because the contract permits this flexibility.
Option A is incorrect; full compensation is not guaranteed.
Option C is incorrect; the adjustment can cover materials and labour but may extend beyond.
Option D is incorrect; adjustments can be calculated from different dates as specified.
References:
FIDIC Silver Book 1999 Edition, Sub-Clause 13.8 - Adjustments for Changes in Cost FIDIC Contract Manager Study Guide, Module on Payment Adjustments
NEW QUESTION # 61
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. True
- B. False
Answer: B
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 # 62
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).
- A. The Contractor may submit a proposal for Value Engineering.
- B. The Contractor is entitled to change the design by optimising the design, without approval of the Employer/Engineer.
- C. 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.
- D. The Contractor is not allowed to make any changes regarding the design to optimise the design, unless approved by the Engineer/Employer.
Answer: A,D
Explanation:
Option B is correct: The Contractor must obtain approval from the Engineer/Employer before making design changes.
Option C is correct: The Contractor can submit Value Engineering proposals to improve efficiency or reduce costs.
Option A is incorrect; unilateral changes are not allowed.
Option D is incorrect; Value Engineering can be proposed even after initial submission.
References:
FIDIC Yellow and Silver Books 1999 Edition, Sub-Clauses 4.1 and 4.4
FIDIC Contract Manager Study Guide, Module on Design and Value Engineering
NEW QUESTION # 63
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 Particular Conditions.
- D. Specify Commencement Date in the Minutes of Meeting of Contract Negotiation.
Answer: B,C
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 # 64
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?
- A. True
- B. False
Answer: B
Explanation:
Under the FIDIC Red and Yellow Books 1999 editions, the Engineer acts as the Employer's representative with authority delegated under the contract. When an instruction requires the Employer's prior approval, it is primarily the Engineer's responsibility to obtain that approval before issuing the instruction to the Contractor.
The Contractor isnot contractually required to verifywhether the Engineer has obtained the Employer's approval. The Contractor is generally entitled to rely on the Engineer's instructions as valid and binding unless there is clear evidence to the contrary.
This principle avoids placing an undue administrative burden on the Contractor and maintains the hierarchical contract administration structure, where the Engineer is the primary point of contact and decision-maker.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 3.1 - Engineer's Duties and Authority FIDIC Yellow Book 1999 Edition, similar provisions FIDIC Contract Manager Study Guide, Module on Contract Administration Procedures
NEW QUESTION # 65
Which two statements are correct regarding the FIDIC Red Book (edition 2017)?
- A. 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.
- B. Contract Data contains information which is required by certain Sub-Clauses in the General Conditions.
- C. In some cases, if a certain information is not provided in the Contract Data, the relevant Sub-Clause shall not be applicable.
- D. Words and expressions stated in Sub-Clause 1.1 Definitions do not apply in respect of Specifications and Drawings.
Answer: B,C
Explanation:
Comprehensive and Detailed Explanation:
Option B is correct: The Contract Data provides information required by specific Sub-Clauses in the General Conditions to complete the contract.
Option D is correct: If required data is missing in the Contract Data, some Sub-Clauses may not apply.
Option A is incorrect; definitions generally apply throughout the contract including Specifications and Drawings.
Option C is incorrect; case sensitivity of terms can affect contractual meaning.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 1.1 - Definitions and Contract Data FIDIC Contract Manager Study Guide, Module on Contract Documents
NEW QUESTION # 66
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?
- A. GP1 only
- B. GP1, GP2 and GP3
- C. GP3 only
- D. GP1 and GP3
Answer: D
Explanation:
This clause breaches Golden Principles (GP) 1 and 3:
GP1 promotes fairness and balanced risk allocation between parties. Forcing the Contractor to carry out determinations despite a notice of dissatisfaction undermines fair dispute resolution and contractual balance.
GP3 emphasizes the importance of clear and unambiguous contract drafting that reflects agreed procedures.
This sentence introduces ambiguity and overrides contractual rights to dispute determinations.
References:
FIDIC Contract Management Guidelines - Golden Principles
FIDIC Contract Manager Study Guide, Module on Contract Administration and Contract Clauses
NEW QUESTION # 67
Which one of the following statements regarding drafting contracts based on FIDIC Books is correct?
- A. 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.
- B. The Form of Contract is chosen by the Contractor and imposed by him on the Employer, who tenders on that basis.
- C. 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.
- 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 # 68
Which one of the following claim events does NOT allow profit?
- A. Under the Construction Contract, interference by the Employer with Tests on Completion.
- B. Under the Construction Contract, the failure of the Employer to give right of access to the site.
- C. Under the Plant and Design-Build Contract, errors in the Employer's requirements.
- D. Under the Construction Contract, the Engineer's delay in supplying drawings or issuing instructions.
- E. Under the Construction Contract, the relevant authority had unnecessarily delayed the approval.
Answer: E
Explanation:
Comprehensive and Detailed Explanation:
Under FIDIC contracts:
Profit is usually allowed on claims arising from Employer-caused delays, instructions, or breaches that directly affect the Contractor's performance or costs (Options A, B, C, and E).
Option D relates to delays caused by third parties (authorities). Typically, delays caused by relevant authorities (e.g., permit or approval delays) are treated differently, and profit is not generally recoverable on these claims as they are considered neutral or force majeure-type delays. The Contractor may receive an extension of time and reimbursement of direct costs but not profit.
Thus, Option D is the claim event where profit is not allowed.
References:
FIDIC Red, Yellow, and Silver Books 1999 and 2017 Editions, Clauses on Claims and Compensation FIDIC Contract Manager Study Guide, Module on Claims and Profit on Claims
NEW QUESTION # 69
The Contractor is entitled to an advance payment, it has obtained such payment and it has not yet been entirely paid back. Under FIDIC Red Book (edition 1999), in which two situations will the outstanding balance of the advance payment become immediately due?
Choose all of the correct answers (multiple possibilities).
- A. If advance payment is not completely repaid before the Performance Certificate is issued.
- B. If the advance payment is not completely repaid before termination of the Contract.
- C. If the advance payment is not completely repaid before Time for Completion.
- D. If the advance payment is not completely repaid before the Taking-Over Certificate is issued.
Answer: B,C
Explanation:
Under the FIDIC Red Book 1999, advance payment is a sum paid to the Contractor to help cash flow early in the project. It must be repaid through deductions from interim payments according to a specified schedule.
* Sub-Clause 14.5 (Advance Payment)states that the Contractor must repay the advance payment by installments, typically by the Time for Completion. If the advance payment has not been fully repaid by the Time for Completion, the outstanding balance becomes immediately due and payable by the Contractor (Option A). This ensures the Employer recovers the advance by the time the project completes.
* Additionally,upon termination of the Contract(Sub-Clause 15.2 or relevant termination clauses), any outstanding balance of the advance payment becomes immediately due (Option D). This protects the Employer's financial interest if the Contract ends prematurely.
* Option B (before the Performance Certificate is issued) and Option C (before the Taking-Over Certificate is issued) arenotexplicitly linked in FIDIC Red Book 1999 to triggering immediate repayment of the advance payment. The Taking-Over Certificate marks practical completion and may precede the final repayment schedule, while the Performance Certificate is issued after the Defects Notification Period.
Therefore, the correct situations for immediate repayment of outstanding advance payment balance arebefore Time for Completion and upon termination of the Contract.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 14.5 - Advance Payment
FIDIC Red Book 1999 Edition, Sub-Clause 15.2 - Termination by Employer (Payment obligations) FIDIC Contract Manager Study Guide, Module on Payment Procedures and Financial Management
NEW QUESTION # 70
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. 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.
- 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. Right after the expiry of the payment deadline, the Contractor may terminate the contract.
- D. Beyond receiving the financing charges, the Contractor has no further entitlements in such a case.
- E. 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).
Answer: B,E
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 # 71
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?
- A. False
- B. True
Answer: B
Explanation:
This statement is true. Under FIDIC Silver Book 1999, Sub-Clause 8.6, the Employer can instruct the Contractor to submit a revised programme to meet the contractual Time for Completion. If, after such instruction, the revised programme still shows the Works will not complete on time, the Employer may claim additional costs (such as delay damages or compensation) due to continued delay.
Thus, the Employer's right to claim additional costs is contingent on the revised programme not enabling timely completion.
References:
FIDIC Silver Book 1999 Edition, Sub-Clause 8.6 - Revised Programme
FIDIC Contract Manager Study Guide, Module on Claims and Delay Damages
NEW QUESTION # 72
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. The Engineer (or the Employer in case of FIDIC Silver Book) may instruct that "a Variation shall" be executed on a daywork basis.
- C. If a Daywork Schedule is not included in the Contract, the Sub-Clause related to dayworks shall not apply.
- D. The dayworks related Sub-Clause is only used for remeasurement in the FIDIC Red Book (both editions) only.
Answer: A,B
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 # 73
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?
- A. False
- B. True
Answer: B
Explanation:
This statement is true. The Silver Book (EPC/Turnkey contracts) usually involves lump-sum payment, but if part payment is based on quantity or work done, this must be explicitly provided for in the Particular Conditions to avoid ambiguity.
Such provisions ensure clarity on payment terms in line with project specifics.
References:
FIDIC Silver Book 1999 & 2017 Editions, Sub-Clause 14 - Payment Provisions FIDIC Contract Manager Study Guide, Module on Payment Procedures
NEW QUESTION # 74
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