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NEW QUESTION # 10
Both FIDIC Silver Book (SB) and Yellow Book (YB) (edition 1999) mention the Contractor scrutinising the Employer's Requirements. Which statement is correct?
- A. Scrutinising in FIDIC Yellow Book 1999 and Silver Book 1999 means that the Contractor must ask the Employer to check the Employer's Requirements very well to see if the Works can be built on that location according to the Employer's Requirements.
- B. Scrutinising in FIDIC Silver Book 1999 means that the Contractor should read the Employer's Requirements very thoroughly after the contract closes and see if the Employer's Requirements is complete or if something is missing.
- C. Scrutinising in FIDIC Yellow Book 1999 means the same as in FIDIC Silver Book 1999. In both models it means that after the contract closes and before starting the actual making of the design, the Contractor has to read the Employer's Requirements very thoroughly and check on any errors, omissions or conflicts.
- D. Scrutinising in FIDIC Yellow Book 1999 means that the Contractor has the opportunity after contract close to report on any errors, mistakes or conflicts in the Employer's Requirements. In the FIDIC Silver Book 1999 scrutinising provides that obligation during the tender period; Contractor has the opportunity to report on any errors, mistakes or conflicts in the Employer's Requirements and for Employer to change it; for after contract closes this is not a duty anymore of Employer.
Answer: D
Explanation:
mprehensive and Detailed Explanation:
Option D correctly captures the difference between Yellow and Silver Books (1999):
In the Yellow Book, the Contractor may raise concerns after contract close.
In the Silver Book, the Contractor must scrutinize and report on Employer's Requirements during the tender period, and after contract close this duty lapses.
Other options misunderstand timing or scope of scrutiny.
References:
FIDIC Yellow and Silver Books 1999 Editions, Sub-Clause 4.1 - Contractor's General Obligations FIDIC Contract Manager Study Guide, Module on Employer's Requirements and Scrutiny
NEW QUESTION # 11
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 EPC/Turnkey Projects ("Silver Book").
- B. FIDIC Conditions of Contract for Plant and Design Build ("Yellow Book").
- C. FIDIC Conditions of Contract for Construction ("Red Book").
Answer: B,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 # 12
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 requests a proposal regarding a change in type of windows and doors of the business centre.
- C. The Engineer instructs a change in slopes of stairs to the parking lot with an Instruction in accordance with Sub-Clause 3.3.
- D. The Contractor submits a Value Engineering proposal, in which it proposed to change the colour of the outdoor paint. The Engineer approved the proposal.
Answer: D
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 # 13
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. 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.
- B. No, according to Sub-Clause 5.7 provisional operation and maintenance manuals are always required.
- C. No, because the Contractor has a duty to supply the Employer with every Document, given Sub-Clause
7.4. - D. Yes, because otherwise the Contractor doesn't have to submit any Document until Completion of the Works as stated in Sub-Clause 1.8.
Answer: A
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 # 14
Giving "Notice" .... [2017 edition] (2 correct answers apply)
Choose all of the correct answers (multiple possibilities).
- A. ... is a special obligation for the Engineer only, in order to enable him/her to manage the implementation of the contract.
- B. ... is not a compulsory obligation, but "highly recommended".
- C. ... is always compulsory together with a clear indication of the relevant Sub-Clause under which the Notice is being served.
- D. ... is intended for written communications, in full compliance with the formal requirements outlined in the dedicated Sub-Clause.
Answer: C,D
Explanation:
Option B is correct: Notices are compulsory when required and must reference the relevant Sub-Clause to be valid.
Option D is correct: Notices are formal written communications and must comply with the contract's prescribed procedures.
Option A is incorrect; notices are often mandatory, not merely recommended.
Option C is incorrect; notices are obligations for all Contract Participants, not just the Engineer.
References:
FIDIC Red, Yellow, Silver Books 2017 Edition, Sub-Clause 1.3 - Communications FIDIC Contract Manager Study Guide, Module on Notices and Communication
NEW QUESTION # 15
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 Time for Completion.
- C. If the advance payment is not completely repaid before termination of the Contract.
- 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 # 16
Which two statements are correct regarding the FIDIC Red Book (edition 2017)?
- A. Contract Data contains information which is required by certain Sub-Clauses in the General Conditions.
- B. Words and expressions stated in Sub-Clause 1.1 Definitions do not apply in respect of Specifications and Drawings.
- C. In some cases, if a certain information is not provided in the Contract Data, the relevant Sub-Clause shall not be applicable.
- D. 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.
Answer: A,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 # 17
Which one of the following statements is correct regarding the Employer's Representative under the FIDIC Silver Book (edition 1999)?
- A. The Employer may appoint an Employer's Representative to act on his behalf under the Contract.
- B. The Representatives of both the Employer and the Engineer have no authority to amend the Contract at all.
- C. The Employer must always appoint an Employer's Representative to act on his behalf under the Contract.
- D. The Employer may appoint an Employer's Representative to act on his behalf under the Contract but has to consult the Contractor to agree to this Representative.
Answer: A
Explanation:
Comprehensive and Detailed Explanation:
Under the FIDIC Silver Book (1999 edition), the Employer may appoint an Employer's Representative to act on their behalf, but this is discretionary and not mandatory (Option B). The Employer's Representative acts within the authority delegated by the Employer but cannot amend the Contract unless expressly authorized.
Option A is partly correct but less complete than B.
Option C is incorrect; the appointment is not compulsory.
Option D is incorrect; the Employer is not contractually obliged to consult the Contractor for appointment approval.
References:
FIDIC Silver Book 1999 Edition, Clause 1.1 and Clause 3 - Employer's Representative FIDIC Contract Manager Study Guide, Module on Contract Administration
NEW QUESTION # 18
Under the FIDIC Red and Yellow Books (edition 2017), which two of the following elements shall form part of the initial time Programme?
- A. The sequence and timing of the remedial work.
- B. All key delivery dates of Plant and Materials.
- C. The date on which the right of access to and possession of (each part of) the Site is to be given to the Contractor.
- D. The actual progress to date, any delay to such progress and the effects of such delay on other activities (if any).
Answer: B,C
Explanation:
Comprehensive and Detailed Explanation:
Option A is correct: The initial programme must include the date for the Contractor's access to the Site.
Option D is correct: Key delivery dates for Plant and Materials are essential elements of the programme.
Option B relates to updated/revised programmes, not the initial programme.
Option C generally relates to remedial work and is part of revised or detailed programmes.
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 # 19
Under the FIDIC Red Book (edition 1999), as part of the Contractor submission of Statement, any amount to be deducted for retention, will be calculated by applying the percentage of retention stated in the Appendix to Tender to the total of: (two correct answers apply) Choose all of the correct answers (multiple possibilities).
- A. The estimated contract value of the Works executed.
- B. Any amounts to be added and deducted for Plant and Materials in accordance with Sub-Clause 14.5.
- C. Any amounts to be added and deducted for changes in legislation and changes in cost.
- D. Any amounts to be added and/or deducted for the advance payment and repayments under Sub-Clause
14.2.
Answer: A,B
Explanation:
Under FIDIC Red Book 1999, retention is calculated as a percentage (stated in Appendix to Tender) of the value of Works executed and Plant and Materials in accordance with Sub-Clause 14.5 that are on or off Site but intended for incorporation.
Option A is correct: Retention applies to the value of executed works.
Option D is correct: It also applies to Plant and Materials under Sub-Clause 14.5.
Option B is incorrect; advance payments and repayments are not part of retention calculations.
Option C is incorrect; changes due to legislation or costs are not included in retention calculation.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 14.5 - Plant and Materials; Sub-Clause 14.6 - Retention FIDIC Contract Manager Study Guide, Module on Payment and Retention Procedures
NEW QUESTION # 20
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. A Programme for execution of the varied work.
- B. A description of the proposed design.
- C. A description of the varied work.
- D. Details of the resources and methods to be adopted by the Contractor.
Answer: B
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 # 21
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. False
- B. True
Answer: A
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 # 22
Which one of the following statements is NOT correct in respect of FIDIC Red Book (both editions)?
- A. The General Conditions allocate the risks between the parties on a fair and equitable basis.
- B. The Letter of Tender may be worded by the Contractor (at its discretion) so as to allow for the alternative of the Contract to become effective when the Employer issues a Letter of Acceptance.
- C. The Contract is administered by the Engineer who is appointed by the Employer. If disputes arise, they are referred to a Dispute Adjudication Board (DAB) for its decisions.
- D. The Contract typically becomes legally effective when the Employer issues the Letter of Acceptance to the Contractor.
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Option A is NOT correct because the wording of the Letter of Tender is usually governed by the tender documents and contract terms; it is not solely at the Contractor's discretion to dictate when the Contract becomes effective. The standard process is that the Contract becomes effective upon the Employer's issuance of the Letter of Acceptance.
Options B, C, and D correctly describe standard FIDIC practices.
References:
FIDIC Red Book 1999 & 2017 Editions - Contract Formation and Tendering
FIDIC Contract Manager Study Guide, Module on Contract Formation
NEW QUESTION # 23
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 arbitration
- B. Ad-hoc DAAB
- 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 # 24
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 Engineer cannot sell or otherwise dispose any remaining items and reinstate the Site at the Contractor's Cost.
- B. 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.
- C. The Employer may sell or otherwise dispose any remaining items and reinstate the Site at the Contractor's Cost.
- D. 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.
Answer: B,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 # 25
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 # 26
You are the Contract Manager of the Engineer and person Y is the Contract Manager of the Employer in a construction project under FIDIC 2017 Red Book. The project is late in schedule and Y has issued Employer's claim on Delay Damages. You have asked Y to consider whether the Contractor's delay to completion is a reflection of cash-flow shortfall from interim payments before making deductions to the Contractor's payment. Y replied that even if the Contractor pays Delay Damages to the Employer, the Contractor is still obliged to complete the Works and is not relieved from its duties and obligations. You warned Y of the risks of further reduction of cash-flow by the deduction of Delay Damages from payments. As this could worsen the situation of the Contractor, leading to further delays to the completion of the Works. Who is right?
- A. You are correct, Y is wrong.
- B. You are wrong, Y is correct.
- C. Both you and Y are both correct.
- D. Both you and Y are wrong.
Answer: C
Explanation:
Both statements are correct:
Y is right that payment of Delay Damages does not relieve the Contractor from completing the Works.
You are also correct that excessive deduction of Delay Damages can reduce the Contractor's cash flow, potentially worsening delays.
This situation requires careful balance between enforcing contractual rights and maintaining project progress.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 8.7 - Delay Damages
FIDIC Contract Manager Study Guide, Module on Claims and Cash Flow Management
NEW QUESTION # 27
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 # 28
Regarding the FIDIC Red Book (edition 1999), which two statements are true?
- A. Notices and other communications may be sent in hand written, type written, in print or through an electronic original transmission system.
- B. In emergency situations notices can also be submitted verbally (rather than (also) in writing).
- C. A notice and other communications may be delivered by hand, courier and mail. In each case with proof of receipt is required to qualify as legally valid.
- D. A notice is to be signed by the Engineer, Contractor's Representative or Employer's Authorised Representative.
Answer: A,B
Explanation:
Comprehensive and Detailed Explanation:
Option A is true: In emergencies, verbal notices are permitted with the requirement to follow up in writing.
Option D is true: Notices and communications may be sent in various formats including handwritten, typed, printed, or electronic systems.
Option B is incorrect; a notice does not necessarily have to be signed by all these representatives; it depends on the party issuing the notice.
Option C is incorrect; proof of receipt is ideal but not always strictly required for legal validity depending on contract provisions.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 1.3 - Communications and Notices FIDIC Contract Manager Study Guide, Module on Contract Communication
NEW QUESTION # 29
Which one of the following statements best describes the requirements of Time for Completion?
- A. This is one of the Contractor's obligations, namely the completion of most of the Works (except minor outstanding works), within the Time for Completion calculated from the Commencement Date.
- B. This is one of the Contractor's obligations, namely the completion of most of the Works (except minor outstanding works), within the Time for Completion calculated from the Effective Date.
- C. This is the Contractor's fundamental time-related obligation, namely the completion of most of the Works (except minor outstanding works), within the Time for Completion calculated from the Commencement Date.
- D. This is the Contractor's fundamental time-related obligation, namely completion the whole of the Works within the Time for Completion calculated from the Commencement Date.
Answer: D
Explanation:
Option A best describes the Time for Completion as the Contractor's fundamental obligation to complete the entire Works within the contractual Time for Completion, calculated from the Commencement Date.
Options B, C, and D incorrectly limit the scope to "most" of the Works or confuse the reference date.
The Time for Completion sets the critical timeline for contract performance and triggering of delay damages or extensions.
References:
FIDIC Red and Yellow Books 1999 & 2017 Editions, Sub-Clause 8.1 - Time for Completion FIDIC Contract Manager Study Guide, Module on Time and Delay Management
NEW QUESTION # 30
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 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.
- B. ... 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.
- C. ... 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
- D. ... 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.)
- 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: B,D
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 # 31
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. True
- B. False
Answer: A
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 # 32
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