CCM Exam Dumps - Certified Contract Manager

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.

Under the FIDIC Red Book 1999 Edition, the Engineer is generally responsible for issuing determinations on claims and contract matters. However, if the Particular Conditions require the Engineer to obtain the Employer’s prior approval before issuing such determinations, the Engineer’s options become limited if that approval is not granted.

Option 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) is a practical approach often taken. The Engineer may issue the determination as directed or approved by the Employer but must clarify that it reflects the Employer’s decision rather than the Engineer’s independent determination.

Option D (Informing the Contractor of their inability to issue the determination, due to lack of Employer’s approval) aligns with transparency and procedural correctness. The Engineer should notify the Contractor if they cannot proceed with the determination, explaining the reason to avoid misunderstanding or delay.

Option A (Remain silent and do nothing) is not appropriate, as it may cause project delays and disputes.

Option B (Referring the matter directly to the Dispute Adjudication Board) without a determination from the Engineer is not standard procedure under the 1999 edition. The Engineer’s determination or failure to determine generally triggers the dispute resolution process, but referral is normally after due process, including issuing or attempting to issue a determination.

Hence, Options C and D are the appropriate courses of action.

Option A is correct: The Engineer is entitled to receive evidence that the Contractor has paid for the necessary insurance policies.

Option C is correct: The Engineer has the role of monitoring the validity of these insurances and ensuring that renewals or extensions are arranged in a timely manner.

Option B is incorrect; the Engineer does not have the authority to take out insurance on behalf of the Contractor.

Option D is incorrect; suspension of construction activities is not automatically the Engineer’s role for insurance lapses but may require instructions from the Employer.

Under FIDIC contracts:

Profit is usually allowed on claims arising from Employer-caused delays, instructions, or breaches that directly affect the Contractor’s performance or costs (Options A, B, C, and E).

Option D relates to delays caused by third parties (authorities). Typically, delays caused by relevant authorities (e.g., permit or approval delays) are treated differently, and profit is not generally recoverable on these claims as they are considered neutral or force majeure-type delays. The Contractor may receive an extension of time and reimbursement of direct costs but not profit.

Thus, Option D is the claim event where profit is not allowed.

Option B is correct. Under FIDIC contracts, the Contractor must provide proof of how the Provisional Sum has been expended when requested by the Engineer. This ensures transparency and proper use of funds allocated as Provisional Sums.

Option A is incorrect; Provisional Sums are often used based on instructions from the Engineer or Employer.

Option C is incorrect because Provisional Sums are precisely intended to be used, in whole or in part, according to Engineer’s or Employer’s instructions.

Under FIDIC Yellow Book 1999, Sub-Clause 8.5 [Delays Caused by Authorities] addresses situations where delays arise due to actions or inactions of public authorities. Sub-paragraph (b) specifically provides that delays caused by authorities may entitle the Contractor to an extension of time, provided certain conditions are satisfied.

A critical condition clearly stated in this clause is that the Contractor must have “diligently followed the procedures laid down by the relevant legally constituted public authorities in the Country.” This requirement reflects an important FIDIC contract management principle: entitlement to relief is conditional upon proper Contractor performance. If the Contractor fails to comply with statutory procedures, permit processes, or administrative requirements, then delays cannot be attributed to the authorities for the purpose of claiming time extension.

From a practical perspective, this clause ensures a balanced allocation of risk. While the Employer bears the risk of delays caused by external authorities, the Contractor retains responsibility for proper compliance with all legal and procedural obligations. The Engineer will typically assess whether the Contractor acted diligently before granting any extension of time under Clause 8.4 in conjunction with Sub-Clause 8.5.

Therefore, the statement is correct, as diligence in following authority procedures is a prerequisite for claiming delay under this provision.

Option D is correct because contract drafting should strategically allocate risks between parties based on who can best manage them and the Employer’s budget for risk and reward. Understanding risk appetite is key to tailoring FIDIC contracts appropriately.

Option A is exaggerated; while amendments can introduce issues, careful drafting can preserve benefits of standardization.

Option B is partly true but mixing arrangements is complex and not always straightforward.

Option C is incorrect; the Employer usually chooses the contract form.

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

Option A is correct and 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 B is incorrect and reflects an improper deviation from the standard. The standard Commencement Date notification period is 42 days after 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 C can 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 D is incorrect and 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 D represent incorrect applications of the Golden Principles.