Free CCM Practice Test Questions 2026

Explanation:

Under Sub-Clause 8.6 [Rate of Progress] of both the FIDIC Yellow Book and Silver Book (1999 editions), the substance of the provision is:

"If, at any time... actual progress is too slow to complete within the Time for Completion... then the Engineer [YB] / Employer [SB] may instruct the Contractor to submit... a revised programme... and a supporting report describing the revised methods which the Contractor proposes to adopt in order to expedite progress and complete within the Time for Completion. Unless the Engineer/Employer notifies otherwise, the Contractor shall adopt these revised methods, which may require increases in the working hours and/or in the numbers of Contractor's Personnel and/or Goods, at the risk and cost of the Contractor."

The key phrase is "at the risk and cost of the Contractor." This provision is triggered specifically by the Contractor's own slow/inadequate progress — it is a corrective mechanism to bring the Contractor back on track to meet the existing Time for Completion, not a Variation or an Employer-caused event. Because the underlying cause is the Contractor's own failure to progress the Works adequately, the Contractor bears the additional cost of expediting — there is no entitlement to extra payment, even though the Engineer/Employer accepts the revised programme showing completion within the (unchanged) Time for Completion.

This is a deliberate contrast with:

Sub-Clause 13.3 [Variation Procedure] — where Employer/Engineer-instructed changes to the Works do entitle the Contractor to additional payment; and

Sub-Clause 8.4 [Extension of Time for Completion] — where delay caused by Employer risk events entitles the Contractor to an EOT (and, in some cases, Cost).

Sub-Clause 8.6 sits in neither of those categories — it's a Contractor-risk remedial obligation, so acceptance of the revised programme by the Engineer/Employer does not trigger a right to payment of extra costs.

Reference
FIDIC Conditions of Contract for Plant and Design-Build ("Yellow Book"), 1999 Edition, Sub-Clause 8.6 [Rate of Progress]; FIDIC Conditions of Contract for EPC/Turnkey Projects ("Silver Book"), 1999 Edition, Sub-Clause 8.6 [Rate of Progress].

Explanation:

All three FIDIC Books (Red, Yellow and Silver), in both the 1999 and 2017 editions, contain provisions dealing with nominated Subcontractors.

A nominated Subcontractor is defined as a Subcontractor who is either named as such in the Contract or whom the Engineer (Red/Yellow Books) or the Employer (Silver Book) instructs the Contractor to employ (typically under the Variations / Provisional Sums provisions).

The Contractor is not obliged to employ a nominated Subcontractor against whom the Contractor raises a reasonable objection by giving a Notice (with supporting particulars) to the Engineer/Employer.

The Sub-Clauses list examples of what constitutes a reasonable objection (e.g. insufficient competence/resources/financial strength of the proposed Subcontractor, or the absence of required indemnities in the subcontract).

If the Employer still requires the nomination after a valid objection, the Employer must agree to indemnify the Contractor against the consequences of the matter.

Key references

1999 editions:
– Red Book: Sub-Clauses 5.1 & 5.2
– Yellow Book: Sub-Clause 4.5
– Silver Book: Sub-Clause 4.5

2017 editions:
– Red Book: Sub-Clauses 5.2.1 & 5.2.2
– Yellow & Silver Books: equivalent provisions in Clause 4 / 5

The statement is therefore correct for all three Books and both editions.

Explanation:

The FIDIC Golden Principles (2019) set out five key considerations to ensure contracts remain fair, balanced, and aligned with FIDIC’s philosophy. Two of these principles directly relate to the question:

The Employer obtains the best value for money

Contracts must be structured to ensure the Employer achieves efficiency, quality, and cost-effectiveness.

This reflects the principle that FIDIC contracts are designed to deliver projects that balance risk allocation and performance obligations fairly.

Disputes should be avoided to the extent achievable

FIDIC emphasizes proactive dispute avoidance through clear contract terms, good administration, and collaboration.

When disputes do arise, they should be minimized and resolved efficiently (through mechanisms like Dispute Avoidance/Adjudication Boards).

Why Other Options Are Incorrect

B. "Only the Employer should be the one to obtain the best value for money" AND "The Contractor/Subcontractor is paid adequately and timely..."
✘ Incorrect. The Golden Principles emphasize balance — not exclusivity for the Employer. Payment adequacy is correct, but the first statement is too one-sided.

C. "The Contractor/Subcontractor is paid adequately..." AND "The terms of the Contract are comprehensive and fair to primarily the Employer".
✘ Incorrect. FIDIC requires fairness to both parties, not primarily the Employer.

D. "The Contractor should take advantage of its bargaining power..." AND "Disputes are avoided/minimized/resolved efficiently."
✘ Incorrect. The first statement contradicts FIDIC’s balanced risk-sharing philosophy.

References
Risk allocation — Balanced risk sharing between Employer and Contractor.
Dispute resolution — Avoidance, minimization, and efficient resolution.

Explanation:

Under FIDIC Yellow Book 2017 (Sub-Clause 16.2 - Termination by Contractor), the grounds for termination by the Contractor include specific material breaches by the Employer:

Why D is correct (Does NOT allow termination)
Sub-Clause 16.2(d)(ii) explicitly grants the right to terminate if the Employer fails to comply with a binding agreement or a final and binding decision/determination of the DAAB (Dispute Avoidance/Adjudication Board), not the Engineer. While the Engineer issues determinations under Sub-Clause 3.7, a failure to comply with an Engineer's determination does not automatically trigger the specific contractual right to terminate under Sub-Clause 16.2 unless it goes through the proper dispute adjudication process.

Why A allows termination
Sub-Clause 16.2 (read with Sub-Clause 8.11) allows termination if a prolonged suspension affecting the whole of the Works exceeds 84 days (1 year well exceeds this threshold).

Why B allows termination
Sub-Clause 16.2(c) permits termination if the Contractor does not receive payment within 84 days after the payment due date (4 months is greater than 84 days).

Why C allows termination
Sub-Clause 16.2(a) allows termination if the Contractor does not receive reasonable evidence of financial arrangements within 42 days of a notice under Sub-Clause 2.4 (4 months is greater than 42 days).

Explanation:

Both correct statements reflect the strengthened, more formalised approach to Notices introduced in the FIDIC 2017 Rainbow Suite, governed primarily by Sub-Clause 1.3 [Notices and Other Communications].

B. Notice is always compulsory together with a clear indication of the relevant Sub-Clause under which it is being served.

Correct. One of the deliberate changes in the 2017 editions was to make the giving of Notices mandatory ("shall") wherever the Contract requires one — this is a significant tightening compared to the more informal, discretionary practice sometimes seen under the 1999 editions. Sub-Clause 1.3 expressly requires that a communication:

"shall state that it is a Notice", and
"shall refer to the Sub-Clause... under which it is given."

This is deliberate: FIDIC 2017 wanted to eliminate ambiguity about whether a given letter, email, or site instruction constituted a formal contractual Notice (which triggers time bars, entitlements, and obligations) or was merely informal correspondence.

D. Notice is intended for written communications, in full compliance with the formal requirements outlined in the dedicated Sub-Clause.

Correct. Sub-Clause 1.3 requires that a Notice:

be in writing and identifiable as a Notice;
be delivered by hand, sent by airmail/courier, or transmitted using the electronic transmission system (if stated in the Contract Data); and
comply with any other formal requirements specified (e.g., delivery to the correct address, in the ruling language).

Failure to comply with these formal requirements can mean a communication does not qualify as a valid contractual "Notice" — which matters greatly given the strict time-bar consequences tied to Notices (e.g., Sub-Clause 20.2 claims notice within 28 days).

Why the others are incorrect

A. Incorrect. This is the opposite of the actual 2017 position. Under the 1999 editions, some notice provisions were arguably more relaxed or ambiguous in enforcement; the 2017 editions deliberately reversed this by making Notices a strict, compulsory requirement (particularly reinforced by the tightened claims time-bar under Sub-Clause 20.2.1, which is expressed as a condition precedent — failure to give timely Notice can extinguish the claim entirely). It is not merely "highly recommended."

C. Incorrect. The obligation to give Notices under Sub-Clause 1.3 is not limited to the Engineer — it applies to both the Employer and the Contractor (and the Engineer, where the Engineer is required to issue Notices, e.g., a Notice of No-objection, instructions, etc.). Throughout Clauses 2–20, both Parties have numerous Notice obligations (e.g., Contractor's claim Notices under 20.2, Employer's claim Notices under 2.5/20.2, notices of dissatisfaction, notices to correct, notices of intention to terminate, etc.).

Reference
FIDIC Conditions of Contract (Red/Yellow/Silver Books), 2017 Edition, Sub-Clause 1.3 [Notices and Other Communications]; Sub-Clause 20.2 [Claims for Payment and/or EOT] (illustrating the strict time-bar/condition precedent effect tied to proper Notice-giving).

Explanation:

Under Sub-Clause 13.8 of the FIDIC Red Book (1999 Edition), if the Contractor fails to complete the Works within the Time for Completion, the contract specifically addresses how price adjustments will be calculated for work performed after that deadline.

The provision states that for such late work, the adjustment shall be made using:

The index or price applicable on the date 49 days prior to the expiry of the Time for Completion, OR
The current index or price,

whichever is more favourable to the Employer.

Why the Other Options Are Incorrect

A. Each index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works.
This option is incorrect because it presents only one of the two possible benchmarks. The contract does not mandate the use of this fixed historical date unconditionally; it requires a comparison to determine which option benefits the Employer more.

B. The current index or price.
This is incorrect because, like option A, it represents only one side of the comparison. The Engineer must evaluate both the "current" price and the "49-day prior" price to select the most advantageous one for the Employer.

D. Either the current index/price, or index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works, whichever agreed by Parties.
This is incorrect because the selection is not subject to mutual agreement. The Sub-Clause explicitly sets an objective standard: "whichever is more favourable to the Employer." The Engineer determines this unilaterally based on the formula, and it is not a matter for negotiation between the Parties after the failure to complete on time has occurred.

Reference
FIDIC Red Book (1999 Edition), Sub-Clause 13.8 [Adjustments for Changes in Cost].

Explanation

Why A is correct: Under FIDIC Red Book 2017 (Sub-Clause 12.1 – Works to be Measured), the Contract specifies that the Works shall be measured net, meaning the actual physical dimensions or quantities of the Permanent Works executed on Site, in accordance with the drawings and specifications, without unauthorised additions or allowances.

Why B is incorrect: Measurements do not arbitrarily include allowances for the shrinkage, waste, or bulking of materials unless explicitly provided for in the Contract, Bill of Quantities (BOQ), or Technical Specifications.

Why C is incorrect: If an item of the Permanent Works is executed but not specified in the Bill of Quantities (i.e., a variation or unpriced item), the Contractor does not get to unilaterally choose the price. Instead, the valuation of such items is governed by the variation and valuation procedures under Clause 13 (Variations and Adjustments), typically determined or agreed upon by the Engineer.

Explanation:

Under Sub-Clause 1.3 [Communications] of the FIDIC Red Book (1999), all approvals, certificates, consents, determinations, notices, and requests between the Parties must be delivered to a specific address, and the clause identifies two valid addresses:

A. The address stated in the Contract Data (referred to in the 1999 editions as the "Appendix to Tender") — This is the default address for communications, as nominated by each Party (Employer and Contractor) at the time of tendering/contract formation.

B. The address provided for by the recipient of the notice — Sub-Clause 1.3 expressly allows that "if the recipient gives notice of another address, communications shall thereafter be delivered accordingly." In other words, the recipient of communications can subsequently notify a different address, and once that notice is given, future communications must be sent to that newly nominated address instead of the original one in the Contract Data/Appendix to Tender.

Why the others are incorrect:

C. The address of the Site. The Site address is not, by default, a valid address for formal contractual communications under Sub-Clause 1.3, unless it happens to coincide with (or has been specifically nominated as) the address stated in the Contract Data or subsequently notified by the recipient. It is not independently listed as a permissible communications address in its own right.

D. The address of the Contractor's Representative. While the Contractor's Representative (appointed under Sub-Clause 4.3) is an important point of contact for day-to-day site management and instructions, Sub-Clause 1.3 governs formal contractual communications addressed to the Parties (Employer/Contractor) generally — not specifically to the Contractor's Representative's personal or office address, unless that happens to be the nominated address under (A) or (B) above.

Reference: FIDIC Conditions of Contract for Construction ("Red Book"), 1999 Edition, Sub-Clause 1.3 [Communications]; Appendix to Tender (nomination of addresses for communications).

Explanation

Contractual Basis: Under FIDIC Silver Book 1999 (Sub-Clause 8.6 – Rate of Progress), if the progress of the Works falls behind the programme or is deemed too slow to complete within the Time for Completion, the Employer (or the Employer's Representative) may instruct the Contractor to submit a revised programme showing the steps adopted to expedite progress.

Why the statement is False: The Contractor is only entitled to recover additional costs for complying with a Sub-Clause 8.6 instruction if the underlying reason for the slow progress (and the need for acceleration) is not due to a cause for which the Contractor is responsible (e.g., if it was caused by an Employer's risk or variation). Conversely, if the delay is the Contractor's fault, the Contractor must bear all their own costs of complying with the instruction to expedite.

Furthermore, the Employer's right to claim additional costs from the Contractor for the Contractor's failure to maintain adequate progress usually stems from delay damages (Liquidated Damages) or specific default provisions, rather than a blanket rule that the Employer can claim costs for an unachievable revised programme.

Explanation:

Why B and D are NOT applicable reasons

The FIDIC Red Book (1999 Edition), Sub-Clause 8.3 [Programme], requires each Party to advise the other and the Engineer in advance of any known or probable future events or circumstances which may:

Adversely affect the work of the Contractor's Personnel
Adversely affect the performance of the Works when completed
Increase the Contract Price
Delay the execution of the Works or a Section

Option B ("Decrease the Contract Price") is NOT an applicable reason because Sub-Clause 8.3 specifically addresses events that could increase the Contract Price (i.e., events that might result in additional costs), not decrease it.

Option D ("Increase the performance of the Works when completed") is NOT an applicable reason because the actual Sub-Clause 8.3 language refers to events that may "adversely affect the performance of the Works when completed" — meaning events that could degrade or harm the final performance, not events that could improve or increase performance.

Why A and C ARE applicable reasons

Option A ("Delay the execution of the Works or a Section") directly mirrors Sub-Clause 8.3(d), which requires advance notice of events that may "delay the execution of the Works or a Section (if any)".

Option C ("Adversely affect the work of the Contractor's Personnel") directly mirrors Sub-Clause 8.3(a), which requires advance notice of events that may "adversely affect the work of the Contractor's Personnel".

Reference

FIDIC Red Book (1999 Edition), Sub-Clause 8.3 [Programme]: "Each Party shall advise the other and the Engineer, in advance of any known or probable future events or circumstances which may (a) adversely affect the work of the Contractor's Personnel; (b) adversely affect the performance of the Works when completed; (c) increase the Contract Price; and/or (d) delay the execution of the Works or a Section (if any)."

Explanation

B. Correct: Under FIDIC 2017 Red and Yellow Books (Sub-Clause 8.3 - Programme), a revised programme must explicitly show the actual progress achieved to date on each activity, any delays that have occurred, and the resulting effects of those delays on the sequence and timing of remaining activities.

C. Correct: Sub-Clause 8.3 also requires that when a revised programme is submitted, such as after instructions for variations, remedial work, or delays, it must outline the sequence and timing of any remedial or additional work required to complete the Works.

Why the other options are incorrect:

A. Incorrect: While holidays and working hours are part of the general programming information, "internationally recognized holiday periods" as a blanket term are not specifically or uniquely mandated as a standalone element to be added to a revised programme under the text of Sub-Clause 8.3. Local statutory holidays and planned non-working days are what get factored into working schedules.

D. Incorrect: A revised programme must detail the delivery dates of relevant Plant and Materials and provide a comprehensive update of the remaining workflow. It is therefore incorrect to limit this requirement to only the delivery dates of Plant and Materials that have not yet been delivered.

Explanation

A. Injury to persons and damage to property — Correct: The Contractor is required to obtain insurance covering liability for loss, damage, death, or bodily injury to third parties/persons and damage to property, subject to the exclusions and requirements of the Contract. This is a standard and fundamental category of construction-project insurance.

C. Insurance of Goods and other things brought to Site — Correct: The Contractor is also required to insure Goods and other things brought to the Site for incorporation into the Works, as well as relevant Contractor's Equipment and other items, as specified by the Contract. Therefore, this belongs to the typical/basic insurance scope.

Why B is incorrect:
Force Majeure Insurance is not a standard/basic insurance category under the FIDIC 2017 insurance provisions. Events covered by Exceptional Events, the 2017 terminology replacing "Force Majeure", are dealt with contractually under Sub-Clause 18 [Exceptional Events]. The Contract does not establish a general requirement called "Force Majeure Insurance."

Why D is incorrect:
Insurance for non-performance of the Works is not one of the standard/basic insurance categories under the FIDIC 2017 insurance provisions. Insurance generally covers specified risks and liabilities rather than guaranteeing that the Contractor will perform the Works.

Reference:
Sub-Clause 19.2 [Insurance to be Provided by the Contractor] — FIDIC 2017.
Also relevant: Sub-Clause 19.1 [General Requirements for Insurances] and Sub-Clause 18 [Exceptional Events].

Exam Tip:
For basic FIDIC insurance questions, remember:
Persons/property + Goods/Contractor's Equipment + Works-related risks → typical insurance scope.

"Force Majeure Insurance" and "non-performance insurance" are not standard FIDIC insurance categories.

Final Answer: A and C. ✅