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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q42-Q47):

NEW QUESTION # 42
A Contractor under the FIDIC Silver Book (edition 1999) has not been able to finish the Works within the Time for Completion as mentioned in the Contract and has overrun the Time for Completion by 3 months.
This results in a significant claim of $4,500,000 from the Employer. The Employer has submitted this claim to the Contractor according to the procedures as mentioned in the Contract. The Contractor asks you for advice and refers to Clause 8. Which one of the following statements is NOT true?

A. If there are Variations agreed between the Contractor and the Employer, the Contractor should check if an adjustment for Time for Completion was part of any of these Variations.
B. If the delay is entirely caused by the Employer having instructed the Contractor to suspend progress during the Works, while the cause of the suspension is not the responsibility of the Contractor, the claim for delay damages was wrongfully issued.
C. The root cause of the delay has to be determined by the Contractor, thereby especially verifying if the cause of the delay lies in a delay caused by the Authorities.
D. In addition to the delay damages as mentioned in Sub-Clause 2.5, the Employer has the right to claim any extra costs it has to make due to the delay, as delay damages are not seen as compensation for costs incurred by the Employer, but only as an incentive for the Contractor to perform on time.

Answer: D

Explanation:
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.
References:
FIDIC Silver Book 1999 Edition, Sub-Clause 8 - Time for Completion and Delay Damages FIDIC Silver Book 1999 Edition, Sub-Clause 2.5 - Employer's Claims FIDIC Contract Manager Study Guide, Module on Claims and Delay Damages

NEW QUESTION # 43
Through which two of the following documents may the Employer give information to the Contractor of a planned timetable of meetings such as management meetings, site meetings, technical meetings, and progress meetings?
Choose all of the correct answers (multiple possibilities).

A. Special Conditions
B. Employer's Requirements
C. Specification
D. General Conditions of Contract

Answer: A,B

Explanation:
The timetable for meetings is usually set out in the Special Conditions (Particular Conditions) and/or the Employer's Requirements, which define project-specific administrative and management arrangements.
Special Conditions customize the General Conditions to the project and often specify meeting schedules.
Employer's Requirements detail the Employer's expectations, including communication protocols and meeting timetables.
The General Conditions (Option A) are standard and do not include project-specific meeting schedules.
The Specification (Option B) mainly covers technical requirements, not administrative matters like meetings.
References:
FIDIC Red and Yellow Books 1999 and 2017 Editions, Special Conditions and Employer's Requirements Sections FIDIC Contract Manager Study Guide, Module on Communication and Reporting

NEW QUESTION # 44
The Contractor is entitled to an advance payment. Applying FIDIC Red Book (edition 1999), which two of the following statements are correct?
Choose all of the correct answers (multiple possibilities):

A. Under the General Conditions, the advance payment will be repaid by deducting all amounts from invoices until the entire advance payment is repaid.
B. The advance payment reflects the amount of works the Contractor has already performed up to the moment such advance payment is performed.
C. Under the General Conditions, the amount of advance payment is to be paid in full by the Employer through one instalment.
D. The advance payment is to help the Contractor to finance some of its early cost and expenditure until it becomes entitled to first (non-interim) payment.

Answer: A,D

Explanation:
Comprehensive and Detailed Explanation:
Under FIDIC Red Book 1999, advance payment is intended to assist the Contractor in financing the mobilization and early works costs before the Contractor begins receiving regular payments for work performed (Option A). It is not a payment for work already completed, so Option B is incorrect.
The General Conditions provide that the advance payment is usually made in a lump sum or agreed instalments and that the Employer makes the payment in advance (Option C is partially true but generally it can be one or multiple instalments, depending on contract terms).
Importantly, the advance payment must be repaid by the Contractor through deductions from subsequent interim payments (Option D), ensuring the Employer recovers the advanced funds as the work progresses.
References:
FIDIC Red Book 1999, Sub-Clause 14.2 - Advance Payment
FIDIC Contract Manager Study Guide, Module on Payment Procedures and Financial Management

NEW QUESTION # 45
Which two statements reflect an INCORRECT application of a Golden Principle?

A. Deleting all the clauses in the General Conditions that refer to the DAAB/DAB.
B. When applying the FIDIC Red Book or Yellow Book, the Commencement Date shall be within 60 days after the Contractor receives the Letter of Acceptance, in lieu of 42 days.
C. Any deletions of General Conditions (GC) must be replaced with Particular Conditions (PC) that cover the same scope, and do not leave any roles, duties, obligations, rights, and risk allocation undefined.
D. The Contractor's right to suspend work (or reduce the rate of work) effective after giving not less than 3 months (in lieu of 21 days) notice to the Employer.

Answer: A,B

Explanation:
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.
References:
FIDIC Contract Manager Study Guide, Module on Legal and Ethical Considerations and Golden Principles FIDIC Red Book 2017 Edition, Sub-Clause 8.1 - Commencement of Works FIDIC Red Book 2017 Edition, Clause 21 - Disputes and DAAB

NEW QUESTION # 46
Under the FIDIC Red Book (edition 1999), if the Contractor as per Sub-Clause 14.2 has to ensure the Employer receives an Advance Payment Guarantee as per the standard model, what type of instrument should this be?

A. A bank guarantee
B. A parent company guarantee
C. A declaration of joint and several liability
D. A surety bond

Answer: A

Explanation:
According to FIDIC Red Book 1999, Sub-Clause 14.2, the Advance Payment Guarantee must be a bank guarantee issued by a reputable bank acceptable to the Employer. This bank guarantee serves as security to ensure that the advance payment made by the Employer will be repaid if the Contractor fails to fulfill contractual obligations. The bank guarantee is a commonly used, reliable instrument providing direct financial assurance to the Employer.
Other instruments like surety bonds or parent company guarantees may be acceptable only if explicitly agreed, but the standard requirement is a bank guarantee.
Declaration of joint and several liability is not a typical form of guarantee for advance payments.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 14.2 - Advance Payment Guarantee FIDIC Contract Manager Study Guide, Module on Payment Procedures and Guarantees

NEW QUESTION # 47
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