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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q25-Q30):
NEW QUESTION # 25
In a construction project using the FIDIC Silver Book (edition 1999), if the Parties prefer the dispute board to be appointed on an "ad-hoc" basis instead of as a standing Dispute Avoidance and Adjudication Board (DAAB), what is it called? (1 correct answer applies)
- A. DAB
- B. Ad-hoc DAAB
- C. Ad-hoc arbitration
- D. Ad-hoc DB
Answer: A
Explanation:
Under FIDIC terminology, an ad-hoc Dispute Board is known as a DAB (Dispute Adjudication Board), which is appointed for specific disputes as they arise, rather than standing continuously.
The DAAB is a standing board appointed for the project duration, providing continuous dispute avoidance and adjudication.
Option D refers to arbitration, which is a different dispute resolution method.
References:
FIDIC Silver Book 1999 Edition, Clause 20 - Dispute Adjudication Board
FIDIC Contract Manager Study Guide, Module on Dispute Boards and Resolution
NEW QUESTION # 26
Which one of the following statements best describes the requirements of Time for Completion?
- A. This is one of the Contractor's obligations, namely the completion of most of the Works (except minor outstanding works), within the Time for Completion calculated from the Effective Date.
- B. This is one of the Contractor's obligations, namely the completion of most of the Works (except minor outstanding works), within the Time for Completion calculated from the Commencement Date.
- C. This is the Contractor's fundamental time-related obligation, namely the completion of most of the Works (except minor outstanding works), within the Time for Completion calculated from the Commencement Date.
- D. This is the Contractor's fundamental time-related obligation, namely completion the whole of the Works within the Time for Completion calculated from the Commencement Date.
Answer: D
Explanation:
Option A best describes the Time for Completion as the Contractor's fundamental obligation to complete the entire Works within the contractual Time for Completion, calculated from the Commencement Date.
Options B, C, and D incorrectly limit the scope to "most" of the Works or confuse the reference date.
The Time for Completion sets the critical timeline for contract performance and triggering of delay damages or extensions.
References:
FIDIC Red and Yellow Books 1999 & 2017 Editions, Sub-Clause 8.1 - Time for Completion FIDIC Contract Manager Study Guide, Module on Time and Delay Management
NEW QUESTION # 27
Under the FIDIC Red and Yellow Books (edition 1999), which two of the following statements are correct regarding the issuance of Interim Payment by the Engineer?
(Choose all correct answers - multiple possibilities)
- A. The Employer is not bound by the Certificate issued by the Engineer.
- B. The Employer is bound by the Certificate issued by the Engineer and must make payment in full, irrespective of any entitlement to compensation arising from any claim which the Employer may have against the Contractor.
- C. The Employer is bound by the Certificate issued by the Engineer, and must make payment in full, except for any compensation arising from any claim which the Employer may have against the Contractor.
- D. If the Employer considers itself entitled to claim against the Contractor, notice and particulars must first be submitted under Sub-Clause 2.5. The Employer's entitlement is then to be agreed or determined by the Engineer, and then, incorporated as a deduction in a Payment Certificate.
Answer: C,D
Explanation:
Under the FIDIC Red Book and Yellow Book, 1999 editions, the Engineer issues Interim Payment Certificates certifying the amounts due to the Contractor for completed works and materials on site (Sub- Clause 14.6). The Employer is generally bound by the Payment Certificate and must pay accordingly, except where there is a lawful set-off or compensation claim against the Contractor.
Option A is correct because the Employer must pay the amount certified except for compensation claims that may be offset against the payment (Sub-Clause 14.6).
Option D is also correct: If the Employer intends to claim against the Contractor (e.g., for damages or defects), it must notify the Contractor under Sub-Clause 2.5 and provide particulars. The Engineer then assesses and decides on the claim and incorporates any agreed deductions into the Payment Certificate.
Option B is incorrect because the Employer is indeed bound by the Payment Certificate unless lawful deductions or disputes arise.
Option C is incorrect as the Employer can withhold amounts due for compensation claims once these are properly notified and substantiated.
References:
FIDIC Red and Yellow Books, 1999 Edition, Sub-Clause 14.6 - Interim Payments FIDIC Red and Yellow Books, 1999 Edition, Sub-Clause 2.5 - Employer's Claims FIDIC Contract Manager Study Guide, Module on Payment Procedures and Financial Management
NEW QUESTION # 28
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. 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.
- B. The Contractor cannot terminate the Contract.
- C. Under the Contract the Parties cannot agree on further suspension and the Contractor may immediately terminate the Contract if it affects the whole Works.
- D. The Contractor may terminate the Contract if it affects the whole Works, but only after it has given a second notice to the Engineer.
Answer: C,D
Explanation:
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.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 8.9 - Suspension by Engineer
FIDIC Contract Manager Study Guide, Module on Suspension and Termination
NEW QUESTION # 29
What does discharge confirm under the FIDIC Red Book (edition 1999)?
- A. None of the above three statements is correct.
- B. It confirms the immediate end to the Contract unconditionally whenever issued.
- C. It confirms full and final settlement of all money due to the Contractor.
- D. It confirms interim settlement of all money due to the Contractor
Answer: C
Explanation:
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.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 14.13 - Discharge
FIDIC Contract Manager Study Guide, Module on Final Account and Discharge
NEW QUESTION # 30
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