Question 1

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?

Options :

A :

The Contractor submits a Value Engineering proposal, in which it proposed to change the colour of the outdoor paint. The Engineer approved the proposal.

B :

The Engineer instructs a change in slopes of stairs to the parking lot with an Instruction in accordance with Sub-Clause 3.3.

C :

The Engineer requests a proposal regarding a change in type of windows and doors of the business centre.

D :

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.

Answer: A

Question 2

Which two of the following statements are correct regarding Dispute under the FIDIC Red, Yellow, and Silver Books (edition 2017)? Choose all of the correct answers (multiple possibilities)

Options :

A :

In case the Engineer refuses to issue a Performance Certificate or to issue one with a correct date under Sub-Clause 11.9, and the Contractor has disagreed with the requested entitlement or relief in connection with this refusal, Dispute shall be deemed to have arisen.

B :

If a Party is dissatisfied with the determination and has given Notice of Dissatisfaction (NOD) to the other party within a strict 28-day time limit, a Dispute arises and either Party may proceed under SubClause 21.4 to obtain a DAAB decision on it.

C :

The Dispute must be submitted to the Dispute Avoidance and Adjudication Board (DAAB) within 42 days, otherwise the NOD is deemed to have lapsed and is no longer valid.

D : Both 'Disagreement' and 'Dispute' are defined terms under the Conditions of Contract.

Answer: A,B

Question 3

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?

Options :

A : A description of the varied work.

B : A description of the proposed design.

C : Details of the resources and methods to be adopted by the Contractor.

D : A Programme for execution of the varied work.

Answer: B

Question 4

Which of the following cases will allow the Employer to claim under the Performance Security? [2017 Edition] (2 correct answers apply) Choose all of the correct answers (multiple possibilities).

Options :

A : The Contractor failed to renew the Tender Security.

B : The Contractor abandons the Works and the Employer did not issue Notice of termination.

C : The Employer had submitted a claim under Sub-Clause 20.2.

D : The Engineer had issued instruction to replace part of the Works.

E : The Contractor failed to extend the validity of the Performance Security.

Answer: A,E

Question 5

You are the new Contract Manager of the Contractor in a bridge project using FIDIC Yellow Book (edition 2017). The project had been suspended due to a material change in the Employer's financial arrangement. You have worked with your team to identify several failures of the Employer in carrying its obligations under the Contract. Which one of the following does NOT allow the Contractor to issue Notice to terminate the Contract?

Options :

A : A prolonged suspension for more than 1 year has affected the whole of the Works.

B : The Contractor does not receive the amount due under the latest Payment Certificate for more than 4 months after the due date.

C : The Contractor has requested the Employer but has not received any evidence that the financial arrangement is being maintained, despite having sent a notice thereto 4 months earlier

D : The Employer failed to comply with a final and binding determination issued by the Engineer, and such failure constitutes a material breach of the Employer's obligations under the Contract.

Answer: C