You are the Contract Manager in a highway project using FIDIC Red Book (edition 1999). You work for the Employer – a highway management agency. During the tender period, you are informed of a specific Commencement Date required by the directors of the agency. Which two of the following approaches to inform the tenderers of this date are clearly and unambiguously drafted? Choose all of the correct answers (multiple possibilities).
A. Specify Commencement Date in the Minutes of Meeting of Contract Negotiation
B. Specify Commencement Date in the Contract Agreement.
C. Specify Commencement Date in the Particular Conditions
D. Inform the Commencement Date to the tenderers by email, and attach that email in the list of Contract Documents
Under the FIDIC Red Book (edition 2017), the Engineer has suspended works to come to a change of the design of a part of the Works. After expiry of 84 days of suspension, the Contractor gave notice thereof. Following this notice, the suspension was not lifted within 28 days. What two statements are correct in such a situation?
A. A. Under the Contract the Parties cannot agree on further suspension and the Contractor may immediately terminate the Contract if it affects the whole Works
B. The Contractor cannot terminate the Contract
C. The Contractor may terminate the Contract if it affects the whole Works, but only after it has given a second notice to the Engineer
D. The Contractor may omit the affected part of Works and deny to carry out such Work going forward, but only after it has given a second notice to the Engineer
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
In a drafted FIDIC Silver Book (edition 1999), the following sentence has been added to Sub-Clause 3.5: "In case of an Instruction regarding a pending or proposed Variation, Contractor shall carry out any determination regardless of a possible notice of dissatisfaction." What GP(s) is/are breached?
A. GP1 only
B. GP3 only
C. GP1 and GP3
D. GP1, GP2 and GP3
Which one of the following statements is NOT correct in respect of FIDIC Red Book (both editions)?
A. 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.
B. The Contract typically becomes legally effective when the Employer issues the Letter of Acceptance to the Contractor
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 General Conditions allocate the risks between the parties on a fair and equitable basis.
(What is the maximum period for the Engineer to issue the Notice of Commencement Date?)
A. 84 days
B. 42 days
C. 21 days
D. 14 days
You are the Contract Manager of the Engineer in a hotel project. In May 2020, the
Employer and the Contractor signed a Contract based on the FIDIC Yellow Book (edition
2017), as per which the Contractor will design and build a hotel project with Contract Price
of 5,100,000 USD. The Time for Completion for this project is 12 months (May 2021). The
Contract also named a nominated Subcontractor (as referred to in Sub-Clause 4.5) who
provides mechanical, electrical, and plumbing services for the project (including the fire
fighting system), which was accepted by the Contractor without any discussions.
The Project was delayed due to issues with the fire fighting system, and you issued the
Taking-Over Certificate in June 2022.
The Employer sent a Notice of Claim to the Contractor on Delay Damages with a maximum
value equal to 10% of Contract Price (510,000 USD). The Employer also gave a Notice to
the Contractor stating that the Contractor has failed to submit the evidence of payment to
the nominated Subcontractor as well as the reason for withholding payment to the
nominated Subcontractor. Therefore, the Employer has paid the nominated Subcontractor directly the entire amount due, coming to 100,000 USD. The Employer intends to include
this amount as a deduction in the Final Payment to the Contractor.
As Contract Manager of the Engineer, you are tasked to make a fair determination of the
Notices of the Employer. In your "Notice of the Engineer's determination", what is your
determination for the deduction of the next Interim Payment to the Contractor in relation to
the amount directly paid to the nominated Subcontractor?
A. The Employer is entitled to deduct the amount directly paid
B. The Employer is not entitled to deduct the amount directly paid
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. No, according to Sub-Clause 5.7 provisional operation and maintenance manuals are always required
B. No, because the Contractor has a duty to supply the Employer with every Document, given Sub-Clause 7.4
C. Yes, because otherwise the Contractor doesn't have to submit any Document until Completion of the Works as stated in Sub-Clause 1.8
D. 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
(Under the FIDIC Red Book, which of the following statements are correct? [2017 Edition] (2 correct answers apply) Choose all of the correct answers (multiple possibilities).)
A. An attempt to reach an amicable settlement is a mandatory requirement before an Engineer's ruling can be referred to a DAAB
B. A decision by a DAAB is not final and binding on the Parties until it is confirmed by an arbitration award.
C. The FIDIC Red Book's General Conditions specify a standing DAAB
D. A DAAB member nominated by one of the Parties must be agreed by the other Party
E. If the Employer or the Contractor fails to notify its dissatisfaction with an Engineer's ruling within the specified time, the DAAB's decision is final and binding.
(The Employer is a leading company in the hospital and medical care sector who wishes to build a new hospital. The Employer is considering approaching a financial institute to secure most of the funds; therefore, he requires clarity and stability in terms of the Project's budget and time for completion. Which book do you recommend?)
A. Red Book
B. Yellow Book
C. Silver Book
D. All the above
(Which two of the following statements are correct regarding the first step of an Employer's Claim, considering that the Employer is entitled to a reduction in the Contract Price and/or an extension of the Defects Notification Period under any Clause of the Conditions of Contracts or otherwise in connection with the Contract, under the FIDIC Red, Yellow, and Silver Books (edition 2017)? Choose all of the correct answers (multiple possibilities).)
A. The Employer shall give a Notice to the Engineer, describing the event or circumstance giving rise to the cost, loss, delay or extension of the Defects Notification Period for which the Claim is made.
B. The Notice shall be given to the Engineer, as soon as practicable, and no later than 28 days after the claiming Party became aware, or should have become aware, of the event or circumstance.
C. A Notice from the Employer is not required in order to give a Notice to the Engineer for services requested by the Contractor
D. The Notice given by the Employer must also include the legal or contractual basis of the claim, including the clause of the Contract under which it is made.
During the execution of certain Works under a FIDIC Yellow Book (edition 1999), a Contract in a historical area along the silk route, one of the workers on the excavator shouts out to the supervisor of the Contractor it has discovered something on the Site. The supervisor inspects the finding and concludes this is possibly an ancient treasure in a wooden box. The supervisor sees some golden coins through the cracked lid of the box. The supervisor immediately stops the execution of the Works, sends the workers away and blocks access to the Site for all persons. Given the sensitive nature of the findings, the supervisor informs you as Engineer. How do you react?
A. You compliment the supervisor for their swift and decisive action. However, the Works should advance as soon as possible. You ask the supervisor to excavate the box further, and place it in the back of your truck. You promise the supervisor you will drive the box yourself to the University in the city nearby, because it is very important to preserve found treasures like this. The Contractor is not entitled to an extension of time, as no delay has been incurred.
B. You thank the supervisor for their action. You make sure the Site is secured and ask the Contractor to make an improvised barrier around the Site. You ask the Contractor to appoint its most trustworthy guards to set a perimeter. You inform the Employer and local authorities and you ask the Contractor to send you a notice in writing whereby it requests for a Variation (as this is needed for you to instruct the Contractor), thereby already including a fixed proposal for the costs of the guards and barrier, all in accordance with Sub-Clause 4.24.
C. You inform the supervisor that given the sensitive nature of the findings, you need a formal and written notice as mentioned in Sub-Clause 4.24 second paragraph, otherwise you cannot give further instructions. You ask them to send it to you as soon as possible, because otherwise you are not able to entitle the Contractor to any extension of time and payment of costs.
D. You immediately take action and give the instruction to the supervisor to make sure to cover this finding and till the excavation with material. You then redesign and make a determination (Sub-Clause 3.5) on a change of the Works — if needed — to make sure the execution can restart within days because of the need to finish this project.
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