CCM Certified Contract Manager Questions and Answers

Comprehensive and Detailed Explanation:

Option A is correct: Continuing effect claims (claims where the event’s impact continues over time) require notices like other claims, typically within 28 days of awareness.

Option D is correct: The fully detailed claim submission generally must be within 84 days of becoming aware of the event, allowing the Claiming Party to elaborate on the claim.

Option B is incorrect; Employer claims also require timely notification.

Option C is incorrect; missing a single interim claim does not necessarily result in losing entitlement if the contract allows for correction or continued claims.

All main FIDIC contract editions contain provisions that allow the Employer or Engineer to propose or instruct the Contractor to employ certain subcontractors (e.g., nominated subcontractors). The Contractor retains the right to refuse such subcontractors only for reasonable cause, which must be communicated formally.

This mechanism protects the Employer’s interests in subcontractor selection while safeguarding the Contractor’s right to reject subcontractors that may not be competent or suitable.

Therefore, the statement is true.

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.

This statement is true. The FIDIC Yellow and Silver Books (2017 editions) include a clear provision that the Works, or the parts designed by the Contractor, must be fit for their ordinary purposes, reflecting the Contractor’s responsibility for design and performance. This introduces an express fitness-for-purpose obligation, which was less explicit in earlier editions.

This provision clarifies risk allocation related to design liability, ensuring that the Contractor is accountable for the fitness of the designed works unless otherwise specified.

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.

In FIDIC Yellow Book (1999), the Contractor is responsible for scrutinizing the Employer's Requirements per Sub-Clause 5.1 and must notify any discrepancies or errors. However, passing this obligation to a Subcontractor, and requiring the Subcontractor to indemnify the Contractor for errors or defects arising from the Employer's Requirements or the Contractor's design, unfairly shifts risk and liability to the Subcontractor. The Subcontractor is likely not in a position to fully review or control the Employer’s Requirements or the overall Contractor’s design. This exposes the Subcontractor to excessive risk, beyond their scope and capacity.

Advice C highlights that the Subcontractor becomes vulnerable to claims for design defects outside their control. This misallocation of risk is generally not recommended and can be challenged during contract negotiation. Good contract management practice and risk allocation principles (FIDIC Contract Manager Study Guide, Module on Claims and Dispute Resolution) support this position.

While Options A, B, and D propose different approaches, only C correctly identifies the fundamental contractual and risk management issue that should prevent the Subcontractor from entering the contract as is.

Discharge under FIDIC Red Book 1999 confirms full and final settlement of all money due to the Contractor. It signifies the Contractor's acceptance of the Final Payment Certificate and releases the Employer from further financial obligations related to the contract.

Options A and C misrepresent the nature of discharge.

Discharge is not a unilateral immediate termination but a financial closure.

FIDIC’s Golden Principles emphasize clarity, fairness, and completeness in contract drafting and administration. Incorrect applications often create risks, ambiguities, and disputes.

Option Aiscorrectand reflects a good application of Golden Principles. When deleting clauses from the General Conditions, these must be replaced adequately in the Particular Conditions so that no essential contractual scope or responsibilities are lost or left undefined.

Option Bisincorrectand reflects an improper deviation from the standard. The standard Commencement Date notification period is42 daysafter the Contractor receives the Letter of Acceptance (per Sub-Clause 8.1). Extending it to 60 days without valid reason or clear agreement introduces uncertainty and potential delay.

Option Ccan be a legitimate contractual modification, provided it is agreed by the parties. Extending the Contractor’s notice period for suspension from 21 days to 3 months is a significant change but not inherently contrary to Golden Principles if done transparently and fairly.

Option Disincorrectand reflects a poor application of Golden Principles. Deleting all clauses referring to the DAAB/DAB (Dispute Adjudication Board) removes a critical dispute avoidance and resolution mechanism, undermining contract fairness and efficiency.

Therefore,Options B and Drepresent incorrect applications of the Golden Principles.

Comprehensive and Detailed Explanation:

Option B is correct: A Variation is a formal change to the Works instructed by the Engineer via a Notice (Sub-Clause 3.5). This includes changes to design or execution such as slopes on a road.

Option A is a proposal, not yet a Variation. Positive interest does not constitute a Variation.

Option C is partially correct but depends on formal instruction after proposal acceptance; the question specifies the Engineer instructs the Variation, but since it was a request for proposal first, the Variation instruction comes later. Without explicit instruction, this is not yet a Variation.

Option D is invalid as verbal instruction plus a Notice denying cost claims does not constitute a proper Variation.

Local procurement laws, regulations, and internal governance rules often apply in addition to or alongside FIDIC contract provisions. Employers, whether public or private, must comply with applicable national or sector-specific rules, which may affect procurement procedures, documentation, and contract award processes.

Option C is correct because procurement requirements depend on local legal systems, the nature of the Employer, and applicable governance.

Option A is incorrect as FIDIC contracts provide contractual frameworks but do not override local legal obligations.

Option B is incorrect because many Employers have procurement policies.

Option D is incorrect since private entities may also be subject to procurement laws or internal policies.

Under FIDIC Red Book 2017, if the Engineer suspends works for more than 84 days and the Contractor notifies the Engineer, but the suspension is not lifted within 28 days, the Contractor may terminate the contract if the suspension affects the whole of the Works (Option A).

Additionally, the Contractor must give a second notice before termination (Option C). This process ensures proper communication and adherence to contractual procedures.

Option B is incorrect; termination is allowed under specified conditions.

Option D is incorrect; omission of work is not generally permitted without formal termination.

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.

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.

According to the FIDIC Red Book 1999,Sub-Clause 14.10 – Application for Final Payment Certificateand related procedures allow the Contractor to submit the Final Statement, which includes the final account of all sums due.

If after submission the Contractor identifies errors or omissions in the Final Statement, the Contractor is generally entitled tosubmit corrections or adjustmentsto that statement before the issuance of the Final Payment Certificate. This ensures that the final account accurately reflects all amounts due.

The Engineer reviews the Final Statement and may seek clarifications or adjustments. The contract typically allows the Contractor to correct or revise the Final Statement as part of this review process.

However, once the Final Payment Certificate is issued and accepted by the parties, it becomes more difficult for the Contractor to amend the Final Statement without formal agreement or dispute resolution.

Hence, prior to certification, the Contractor can correct the Final Statement.

Both claims are valid under the Silver Book principles:

The error in the Employer's Requirements (typo in NTS-PW-01) leads to entitlement for additional piling costs.

The unforeseen hydrological data causing additional flood protection works qualify as unforeseeable physical conditions entitling the Contractor to compensation.

Hence, Option D is correct — the Contractor is entitled to both claims.

Dayworksrefer to works executed on a time basis (e.g., labor and plant) with payment made according to predetermined rates rather than a lump sum or unit rate contract price.

Option Aisincorrect. Even if a Daywork Schedule is not initially included, the dayworks Sub-Clause (e.g., Sub-Clause 13.7 in Red and Yellow Books, 13.8 in Silver Book 1999) still applies to dayworks ordered during the contract execution. The schedule facilitates pricing, but the Sub-Clause governs the method and conditions for dayworks.

Option Biscorrect. The dayworks Sub-Clause is applicable not only to traditional construction works but can also be applied to other types of works, such as variations or additional works that cannot be precisely measured or foreseen and are charged on a time basis.

Option Cisincorrect. The dayworks Sub-Clause is used in all FIDIC standard forms (Red, Yellow, and Silver Books), not only for remeasurement in the Red Book. In the Yellow Book (plant and design-build) and Silver Book (EPC/turnkey), dayworks are similarly applicable for certain variations or unforeseen works.

Option Discorrect. The Engineer (in Red and Yellow Books) or the Employer (in the Silver Book, where the Engineer’s role is limited) may instruct that a variation be executed on a daywork basis. This instruction is typically used when the scope or quantity cannot be reasonably pre-determined.

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.

Option A is correct. Under Sub-Clause 11.9 (Performance Certificate) refusal or incorrect issuance by the Engineer, combined with disagreement by the Contractor, may cause a Dispute to arise.

Option B is correct. If a Party is dissatisfied with a determination, it must give a Notice of Dissatisfaction (NOD) within 28 days to escalate the matter to a Dispute, allowing either Party to refer it to the DAAB as per Sub-Clause 21.4.

Option C is incorrect. The contract does not specify a 42-day time limit for submission to DAAB after NOD; timelines vary by contract and stage.

Option D is incorrect. ‘Disagreement’ is not a formally defined term in FIDIC contracts, whereas ‘Dispute’ is.

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.

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.

Comprehensive and Detailed Explanation:

Option C is not true because under the FIDIC Silver Book (1999 edition), the delay damages (liquidated damages) specified in the contract are intended as full compensation for the Employer’s loss resulting from late completion. The contract usually excludes other claims for actual losses or extra costs beyond the delay damages.

Option A is true; Variations can include extensions of time.

Option B is true; identifying delay causes is essential for claims and defences.

Option D is true; if the Employer causes suspension not attributable to the Contractor, delay damages claims by the Employer are generally unjustified.

Thus, the Employer cannot claim extra costs over and above delay damages as per typical Silver Book provisions.

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.

Comprehensive and Detailed Explanation:

The Contractor may submit Value Engineering proposals to improve efficiency or reduce costs; however, it is not an absolute contractual obligation to submit such proposals. Also, the preparation of these proposals is generally at the Contractor’s own cost initially. If the proposal is accepted and results in a Variation, then adjustments to the Contract Price may occur, potentially reimbursing the Contractor.

Thus, both statements are false.

Under FIDIC Red Book 1999, the Engineer plays a key role in determining claims submitted by the Contractor (Clause 20). If the Engineer fails to make a determination within the prescribed time, the Parties may be unable to resolve the dispute and thus the matter may proceed to dispute resolution mechanisms.

Option B is correct because if the Engineer does not decide, the claim remains unsettled, and the Parties are left to resolve the dispute, often via Dispute Adjudication Board or arbitration.

Option A is incorrect; claims must comply with notice requirements to be valid.

Option C is incorrect because the Engineer may request further particulars but is not obligated to give a final decision on quantum immediately.

Option D is incorrect as the Engineer, not the Employer’s Representative, first responds to claims.

Option E is incorrect since the Engineer’s decision is not final and binding if disputed; it may be challenged.

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.

Comprehensive and Detailed Explanation:

In the FIDIC Silver Book (1999 and 2017 editions), which is tailored for EPC/Turnkey contracts, the Employer is responsible for notifying the Contractor of the Commencement Date (Sub-Clause 8.1). Unlike other FIDIC contracts where the Engineer might notify commencement, the Silver Book places more responsibility on the Employer due to the nature of the contract where the Contractor is largely responsible for design and execution with fewer Engineer roles.

The Employer’s formal notification of the Commencement Date signals the official start of the Contractor’s obligations and triggers timelines under the contract.

The Engineer or Resident Engineer typically does not issue such notice in the Silver Book framework.

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.