Free Practice Questions for FIDIC CCM Exam

Option D is NOT correct. The DAAB does not act as a witness or provide support during arbitration. Its role is to avoid and adjudicate disputes early during the project lifecycle impartially and fairly, but it does not serve as witness support in arbitration proceedings.

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.

This situation is governed by Sub-Clause 4.24 [Fossils] of the FIDIC Yellow Book 1999. According to this clause, all fossils, coins, articles of value, antiquities, and structures of geological or archaeological interest discovered on the Site are considered the property of the Employer. The Contractor is required to take reasonable precautions to prevent removal or damage and must immediately notify the Engineer upon discovery.

In this scenario, the supervisor has acted correctly by stopping the Works, securing the Site, and informing the Engineer. The Engineer’s responsibility is then to take control of the situation in accordance with contractual and legal obligations. This includes ensuring the Site remains secure, instructing the Contractor to provide guards or protective measures, and notifying the Employer and relevant local authorities. Since these actions may cause delay and incur additional cost, the Engineer should formalize instructions through a Variation under Clause 13, allowing the Contractor to be compensated for such measures.

Option A is incorrect because it violates ownership rights and proper procedures. Option C is wrong because the Engineer is not prevented from acting pending formal notice—immediate action is required. Option D is incorrect because it disregards the importance of preserving archaeological findings and breaches Sub-Clause 4.24 obligations.

Thus, Option B fully aligns with FIDIC risk allocation, procedural compliance, and the Engineer’s duty to administer the Contract properly.

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.

The Contractor may submit Value Engineering proposals to improve efficiency or reduce costs; however, it is not an absolute contractual obligation to submit such proposals. Also, the preparation of these proposals is generally at the Contractor’s own cost initially. If the proposal is accepted and results in a Variation, then adjustments to the Contract Price may occur, potentially reimbursing the Contractor.

Thus, both statements are false.

This statement is true. The Employer administers the contract unless an Employer’s Representative or Engineer is appointed to act on its behalf. The Employer (or its Representative) is responsible for reviewing and negotiating claims in good faith with the Contractor to reach agreement, in line with FIDIC procedures.

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.

A legally binding contract is typically formed when there is an offer, acceptance, and intention to create legal relations. Under FIDIC contracts:

Option B (signing the Contract Agreement) unequivocally forms a binding contract.

Option D (Letter of Acceptance issued after receiving the Contractor’s Letter of Tender) generally forms a binding contract unless otherwise specified, as the Letter of Acceptance is the formal acceptance of the tender.

Option A (Letter of Intent) is not necessarily a binding contract; it often serves as an interim arrangement signaling intent but may lack definitive terms to form a contract.

Option C (conditional Letter of Acceptance) may not form a binding contract unless the conditions are fulfilled.

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) is not 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 D are the appropriate courses of action.

Under FIDIC Silver Book 2017 (EPC/Turnkey), the Contractor bears extensive risk responsibility, particularly for design, site conditions, and data interpretation. However, there are important exceptions—especially concerning errors in the Employer’s Requirements.

For the first claim (piling works):

The Employer’s Requirements explicitly mandated compliance with a specific national standard (NTS-PW-01), which contained a proven technical error. Under Sub-Clause 1.9 [Errors in the Employer’s Requirements] , the Contractor is entitled to claim additional cost and/or time if it suffers due to such errors. Since the Contractor relied on a prescribed standard, the risk remains with the Employer. Therefore, this claim is valid.

For the second claim (flood wall):

Although the Site Data contained incorrect hydrological information, under the Silver Book (Sub-Clause 4.10 [Site Data]), the Contractor is deemed to have taken full responsibility for interpreting Site Data. The Contractor assumes the risk of inaccuracies unless expressly stated otherwise. Additionally, “Unforeseeable physical conditions” relief is significantly restricted in the Silver Book compared to Red/Yellow Books. Therefore, the Contractor is not entitled to additional payment for this item.

Thus, only the piling-related claim is admissible, making Option B correct.