Free Practice Questions for FIDIC CCM Exam

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.

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.

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.

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.

Comprehensive and Detailed Explanation:

Option A correctly reflects Golden Principles emphasizing the Employer’s objective of obtaining value for money and the importance of avoiding disputes as much as possible.

Other options either misrepresent the balanced nature of FIDIC principles or promote unfair or unbalanced positions.

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.

Comprehensive and Detailed Explanation:

Option C does NOT, on its own, provide grounds for termination. The Contractor’s request for evidence of financial arrangement, without further contractual breach, is insufficient to terminate.

Options A, B, and D are valid grounds for termination under FIDIC Yellow Book 2017 due to prolonged suspension, non-payment beyond allowed period, or failure to comply with binding determinations.

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.

Delay Damages under FIDIC are primarily a pre-agreed measure to incentivize the Contractor to complete works on time rather than full compensation for all losses suffered. They simplify the process by avoiding the need for the Employer to prove actual losses.

Option A is incorrect; Delay Damages are generally not full compensation.

Option C is incorrect because Delay Damages remove the Employer's burden to prove actual loss.

Option B is the correct interpretation.