A Contractor under the FIDIC Silver Book (edition 1999) has not been able to finish the Works within the Time for Completion as mentioned in the Contract and has overrun the Time for Completion by 3 months. This results in a significant claim of $4,500,000 from the Employer. The Employer has submitted this claim to the Contractor according to the procedures as mentioned in the Contract. The Contractor asks you for advice and refers to Clause 8. Which one of the following statements is NOT true?.
A. If there are Variations agreed between the Contractor and the Employer, the Contractor should check if an adjustment for Time for Completion was part of any of these Variations.
B. The root cause of the delay has to be determined by the Contractor, thereby especially verifying if the cause of the delay lies in a delay caused by the Authorities.
C. In addition to the delay damages as mentioned in Sub-Clause 2.5, the Employer has the right to claim any extra costs it has to make due to the delay, as delay damages are not seen as compensation for costs incurred by the Employer, but only as an incentive for the Contractor to perform on time.
D. If the delay is entirely caused by the Employer having instructed the Contractor to suspend progress during the Works, while the cause of the suspension is not the responsibility of the Contractor, the claim for delay damages was wrongfully issued.
Explanation
Why C is NOT true (The correct choice):
Under FIDIC Silver Book 1999, Sub-Clause 8.7 [Delay Damages], the delay damages specified in the Contract are explicitly intended to be the only financial compensation due from the Contractor for the default of late completion. Once the Employer claims and recovers these agreed delay damages, they generally cannot claim additional general damages or extra administrative costs for the same period of delay, because delay damages are intended to liquidate and limit the relevant loss.
Why A is true:
If variations were ordered during the project, the Contractor must check whether extensions of time (EOT) were granted or agreed upon as part of those variations under the relevant variation provisions. Such an extension could legally excuse part or all of the 3-month overrun.
Why B is true:
Investigating the root cause of the delay is a fundamental first step in defending against a delay damages claim. This includes determining whether critical-path delays were triggered by statutory bodies, local authorities, or other events outside the Contractor's control.
Why D is true:
Under Sub-Clause 8.9 [Consequences of Suspension] and the relevant provisions of Sub-Clause 8.2, if a suspension is instructed by the Employer and is not attributable to the Contractor's default, the Contractor may be entitled to an extension of time and associated Cost. Therefore, a delay damages claim covering an excused suspension period would not be justified.
Final Answer: C. ✅
(Based on Clause 8 in both FIDIC Yellow and Silver Books (edition 1999), is the Contractor allowed to start the design of the Works before the Commencement Date? (1 correct answer applies))
A. Yes, but Contractor will do so on its own risk.
B. Yes, Contractor can start design and execution of the Works to make sure it won't lose any time.
C. No, because any design or execution before the Commencement Date is prohibited in Clause 8.
D. Yes, but Contractor will do so on Employer's risk.
Explanation:
Sub-Clause 8.1 [Commencement of Works] of the FIDIC Yellow Book and Silver Book (1999) states that the Contractor "shall commence the design and execution of the Works as soon as is reasonably practicable after the Commencement Date," and shall then proceed with due expedition and without delay. Critically, Clause 8 does not contain any express prohibition against the Contractor beginning design activities before the Commencement Date.
Since the Commencement Date is the contractual trigger point from which the Time for Completion starts running, and from which the Contractor's formal contractual obligations to proceed with design and execution are measured, there is nothing in the Contract preventing the Contractor from getting a head start on design work earlier, for example, to manage its own internal resource planning or to try to build in float or buffer.
If the Contractor chooses to do so:
It does so entirely at its own risk and cost. There is no contractual obligation on the Employer to recognize, pay for, or give credit for any work, design or otherwise, carried out before the Commencement Date.
If, for example, the Employer's Requirements or design basis subsequently change, via Variation or otherwise, before the official Commencement Date, any early design work done by the Contractor that becomes redundant or must be reworked is the Contractor's own loss. It cannot claim additional time or cost for abortive early design work.
The Contractor also bears the risk that formal access, third-party permits, or other preconditions for effective design or execution may not yet be in place before the Commencement Date.
Why the others are incorrect:
B. Incorrect:
This conflates design with execution, meaning physical works on Site. Even if early design work were tolerated at the Contractor's own risk, actual physical execution of the Works before the Commencement Date would typically not be practical or permitted, since the Contractor generally has no right of access to the Site under Sub-Clause 2.1 until the relevant access arrangements are available. Mobilization, insurance, and security arrangements may also be tied to the contractual commencement framework.
C. Incorrect:
Clause 8 does not contain an express prohibition on early design work. It establishes when the Contractor's formal obligation to commence begins, rather than creating a general bar on voluntary early preparatory design activity.
D. Incorrect:
This reverses the risk allocation. Any early design work undertaken by the Contractor before the Commencement Date is at the Contractor's own risk, not the Employer's, since it falls outside the formal contractual timeline for commencement.
Reference:
FIDIC Conditions of Contract for Plant and Design-Build ("Yellow Book"), 1999 Edition, Sub-Clause 8.1 [Commencement of Works].
FIDIC Conditions of Contract for EPC/Turnkey Projects ("Silver Book"), 1999 Edition, Sub-Clause 8.1 [Commencement of Works].
Sub-Clause 2.1 [Right of Access to the Site].
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 Employer may sell or otherwise dispose any remaining items and reinstate the Site at the Contractor's Cost.
B. The Engineer cannot sell or otherwise dispose any remaining items and reinstate the Site at the Contractor's Cost
C. 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
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
Explanation:
Why A and C are correct:
Under Sub-Clause 11.11 of the FIDIC Red Book (2017 edition), if the Contractor fails to remove its remaining equipment, surplus materials, wreckage, rubbish, or Temporary Works from the Site within 28 days after the Employer issues the Performance Certificate, the Employer has specific remedies.
Option A: The Employer may sell or otherwise dispose of any remaining items and reinstate the Site at the Contractor's cost. This matches the standard FIDIC provision, which entitles the Employer to recover costs incurred in connection with the sale or disposal and the restoration of the Site.
Option C: 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. The provision states that any balance from the sale shall be paid to the Contractor, but if the proceeds are less than the Employer's costs, the Contractor must pay the outstanding balance to the Employer.
Why B and D are incorrect:
Option B: This is incorrect because it states that the Engineer "cannot" sell or dispose of items, which contradicts the Employer's express right to do so under Sub-Clause 11.11.
Option D: This is incorrect because it states that the Employer "cannot" reinstate and clear the Site if the Contractor fails. The Employer is expressly entitled to do so and recover the costs from the Contractor.
Reference:
FIDIC Red Book (2017 Edition), Sub-Clause 11.11 [Clearance of Site].
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. 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.
D. 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.
Explanation:
In the FIDIC Silver Book (1999), Sub-Clause 13.8 [Adjustments for Changes in Cost] governs how the Contract Price may be adjusted for rises and falls in costs, including labour, materials, goods, and other applicable cost components.
The Particular Conditions may specify the formula or indices to be used for cost adjustments.
These indices may not always reflect the actual market changes in cost. As a result, the adjustment of the Contract Price may be lower or higher than the actual changes in labour, goods, or other applicable costs.
This is intentional. FIDIC allows the Employer to define a transparent and predictable adjustment mechanism, even if it does not fully compensate the Contractor for actual cost fluctuations.
Why the Other Options Are Incorrect:
A. Full compensation for all rises and falls:
Incorrect. Adjustments are based on the applicable indices and formula rather than guaranteeing full compensation for every actual increase or decrease in cost.
C. Only labour and goods costs apply:
Incorrect. Adjustments can apply to other cost categories depending on the formula and indices specified in the Particular Conditions.
D. Only Base Date applies:
Incorrect. While the Base Date is relevant to the calculation, adjustments are not limited to the Base Date. They are calculated according to the applicable formula and indices specified in the Contract.
References:
Contract administration — Sub-Clause 13.8 [Adjustments for Changes in Cost].
Under the FIDIC Red, Yellow, and Silver Books (edition 2017), if a Dispute is referred to the Dispute Avoidance and Adjudication Board (DAAB) to obtain its decision, the Parties shall suspend performing their obligations in accordance with the Contract, until they receive further directions from the DAAB. Is this statement true or false?
A. True
B. False
Explanation:
Under Sub-Clause 21.4.2 [The Parties’ obligations after the reference] of the FIDIC Red, Yellow and Silver Books 2017, the Parties are required to continue performing their contractual obligations after a Dispute has been referred to the DAAB, unless the Contract has already been abandoned or terminated.
Referring a Dispute to the DAAB does not entitle or require either Party to suspend performance. The Parties must continue to perform their obligations in accordance with the Contract while the DAAB considers the Dispute, unless the Contract has already been abandoned or terminated.
The statement is therefore false.
Reference:
FIDIC Conditions of Contract, Second Edition 2017 — Sub-Clause 21.4.2 [The Parties' obligations after the reference].
(You are the Contract Manager in a contract using the FIDIC Red Book with a Dispute Avoidance and Adjudication Board. The DAAB is already appointed (standing DAAB). You are coaching your team on the steps to be followed to request for informal assistance from the DAAB during a Site visit. Which one of the following does NOT belong to those steps?)
A. The Employer and the Contractor have identified an issue and disagreement, and have agreed between themselves that they want the DAAB to provide assistance and/or informally discuss and attempt to resolve that issue/disagreement.
B. The Engineer has made a non-objection letter, in which it is stated that the issue/disagreement does not concern the matter that is being dealt with by the Engineer
C. The Employer and the Contractor have made a "joint request" in writing before the DAAB gives the requested assistance
D. Both Parties should be present at the meeting in which the DAAB provides assistance
Explanation:
Under the FIDIC Red Book 2017, a standing DAAB can provide informal assistance to the Parties when they jointly ask for help with an issue or disagreement.
The process is intended to help the Parties resolve matters before they become a formal dispute.
A. Employer and Contractor identify an issue and agree to seek DAAB assistance — Correct:
The Parties must agree that they want the DAAB to provide informal assistance or discuss the issue and attempt to resolve the disagreement.
B. Engineer provides a non-objection letter — Incorrect:
This is the incorrect step. The Engineer does not have to issue a "non-objection" before the Employer and Contractor can request informal assistance from the DAAB.
The DAAB's informal assistance is a matter between the Employer and Contractor, and the Engineer's non-objection is not a prerequisite specified by the Contract.
C. Joint written request — Correct:
The Employer and Contractor make a joint request in writing to the DAAB before the DAAB provides the requested informal assistance.
This is an important distinction: informal assistance is not something one Party can unilaterally impose on the DAAB.
D. Both Parties should be present — Correct:
The purpose of the informal assistance is to facilitate discussion between the Parties. Both the Employer and Contractor should therefore participate when the DAAB provides its assistance.
Reference:
FIDIC Red Book 2017.
Relevant provisions include Sub-Clause 21.3 [Avoidance of Disputes] and the DAAB Procedural Rules, particularly the provisions concerning informal assistance during Site visits.
Exam Tip:
For informal DAAB assistance, remember:
Parties agree → joint written request → both Parties participate → DAAB assists.
The Engineer does not need to issue a non-objection.
Final Answer: B. ✅
(You are the Contract Manager of the Employer's Representative in a Thermal Power Plant Project under FIDIC Silver Book (edition 2017). The Contractor submits two claims: (1) USD 200,000 for additional costs due to an error in national piling standard NTS-PW-01 referenced in the Employer’s Requirements. (2) USD 300,000 for constructing an additional flood wall due to incorrect hydrological data in Site Data (water level miscalculated). What is your determination for the Contractor?)
A. The Contractor is not entitled to either of the Claims.
B. The Contractor is entitled to the Claim for additional costs in relation to the piling, based on errors in the Employer's Requirements only.
C. The Contractor is entitled to the Claim for the additional floodwall based on Unforeseeable difficulties only.
D. The Contractor is entitled to both claims.
What are two differences between a notice and other communications under the FIDIC Red Book (edition 2017)? (2 correct answers apply) Choose all of the correct answers (multiple possibilities).
A. Notice is a defined term, while other communications are not defined as a term in the General Conditions.
B. Contractually there is no difference between a notice and other communications.
C. Both 'Notice' and 'Other Communications' are defined terms under the Conditions of Contract.
D. The Parties and Engineer shall be given original or copy of any Notice, Notice of Dissatisfaction (NOD) and Certificates, which is not always the case for other communications.
If defects are identified during the Tests on Completion, which one of the following options is not available to the Parties under the Contract?
A. If the defects do not affect the use of the Works for their intended purpose, the Engineer can issue the Taking-Over Certificate
B. By giving reasons, the Engineer can refuse to accept the Works until repeated tests have been successfully performed
C. The Employer can request to take over the Works.
D. The Party which is not liable for the cost of rectifying defects can expect the other Party to pay the cost of performing the repeated tests.
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 is entitled to change the design by optimising the design, without approval of the Employer/Engineer.
B. The Contractor is not allowed to make any changes regarding the design to optimise the design, unless approved by the Engineer/Employer
C. The Contractor may submit a proposal for Value Engineering
D. 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
(Golden Principle 2 states that "The Particular Conditions must be drafted clearly and unambiguously." Which statement best underlines this Golden Principle in relation to the FIDIC Red, Yellow, and Silver Books (both editions)?)
A. Clarifications to the meaning of tender documents together with answers to tenderers’ inquiries made during the tender period by the Employer can be inconsistent. If Sub-Clause 1.5 does not provide for the right order, this Sub-Clause can be amended explicitly or implicitly, and this can be done through any of the documents mentioned in Sub-Clause 1.5.
B. When clarifications are given during the tender period, which might impact several general conditions, it is not necessary to amend all these conditions through the Particular Conditions or to consider which exact general conditions require amendment, as such clarifications are deemed to be self-explanatory.
C. Modifications made to the Conditions of Contract during tender negotiations that were only documented in emails between the Parties can be part of the Contract as long as those emails are subsequently included in the List of Contract documents. In such a case, it is not necessary to incorporate those modifications in, for instance, the Particular Conditions.
D. In the Particular Conditions, all changes to the General Conditions must be clearly identified by reference to specific Sub-Clause numbers. Additionally, the Particular Conditions Sub-Clauses must clearly indicate the relationship between the newly introduced text and the corresponding General Conditions Sub-Clauses’ original text, e.g., addition, omission, replacement, or amendment.
If the Engineer is required to obtain the Employer's prior approval to issue determinations (including such requirement in the Particular Conditions) and such approval was not given by the Employer, what possible options are at stake for the Engineer to proceed? [1999 Edition] (2 correct answers apply) Choose all of the correct answers (multiple possibilities).
A. Remain silent and not do anything in the subject
B. The Engineer should refer the matter in subject to the DAB.
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
D. Informing the Contractor of their inability of issuing the determination, in lack of the Employer's necessary approval
| Page 3 out of 12 Pages |
| 1234 |
| CCM Practice Test Home |
Real-World Scenario Mastery: Our CCM practice exam don't just test definitions. They present you with the same complex, scenario-based problems you'll encounter on the actual exam.
Strategic Weakness Identification: Each practice session reveals exactly where you stand. Discover which domains need more attention, before Certified Contract Manager exam day arrives.
Confidence Through Familiarity: There's no substitute for knowing what to expect. When you've worked through our comprehensive CCM practice exam questions pool covering all topics, the real exam feels like just another practice session.
Copyright © All Rights Reserved