Verified CCM dumps Q&As 100% Pass in First Attempt Guaranteed Updated Dump from ValidExam [Q24-Q40]

QUESTION 24
The Employer has prepared a contract for a waste-to-energy project based on the FIDIC Yellow Book (edition
1999). You are preparing negotiations on behalf of one of the Subcontractors with the Contractor. The main Contractor will manage the design and build of the Works, whereby the Subcontractor will deliver critical systems regarding power generation and cooling. The Contractor intends to contract the main Contract back- to-back with the Subcontractor. In the proposed back-to-back subcontract, the following amendment is proposed through Particular Conditions:
” Sub-Clause 4.4. The following paragraph is added: The Subcontractor is required to scrutinize the Employer
‘ s Requirements in a manner identical to the obligations of the Contractor as stated in Sub-Clause 5.1 of the Main Contract. The Subcontractor will indemnify and hold harmless (up to the maximum liability of the Subcontractor) the Contractor with regard to any error, fault or other defect found in the Employer ‘ s Requirements, its items of reference or Contractor ‘ s design of the Works for the scope part for which Subcontractor is contracted. ” What is your advice to the Subcontractor (SC) in regard to entering this proposed subcontract?

I would advise the SC to enter the Contract with the request to the Contractor to delete this amendment in the Particular Conditions. If the Contractor does not agree to do so, at least the Subcontractor has tried its best.

I would advise the SC not to enter this contract because the Contractor is obliged to act in accordance with good faith. A proposed paragraph like this opposes good faith.

I would advise the SC not to enter this contract, because Sub-Clause 4.4 describes the obligations of SC towards Contractor, but this amendment positions the SC in a vulnerable position for claims regarding all errors, faults or other Defects (whether originating from the Employer ‘ s Requirements or the design of the Contractor). Essentially, this means the SC becomes liable for the design part, which is within the scope of Contractor even without SC having the opportunity to review it.

I would advise the SC to discuss this amendment with the insurance company just to be sure there will be no transfer of risks. This amendment is mainly a consequence of the FIDIC Yellow Book structure, where the Contractor has obligations in terms of scrutinizing the Employer ‘ s Requirements. This amendment makes this obligation more explicit. If the insurance company has no problems with insuring the parts which will be delivered by SC to Contractor, the SC can accept this risk and enter into the subcontract.

QUESTION 25
(Under the FIDIC Red Book, which of the following statements are correct? [2017 Edition] (2 correct answers apply) Choose all of the correct answers (multiple possibilities).)

An attempt to reach an amicable settlement is a mandatory requirement before an Engineer ‘ s ruling can be referred to a DAAB.

A decision by a DAAB is not final and binding on the Parties until it is confirmed by an arbitration award.

The FIDIC Red Book ‘ s General Conditions specify a standing DAAB.

A DAAB member nominated by one of the Parties must be agreed by the other Party.

If the Employer or the Contractor fails to notify its dissatisfaction with an Engineer ‘ s ruling within the specified time, the DAAB ‘ s decision is final and binding.

QUESTION 26
Is the Employer obliged under FIDIC Silver Book (edition 1999) to describe which Documents are to be submitted to the Employer? (1 correct response applies)

No, according to Sub-Clause 5.7 provisional operation and maintenance manuals are always required.

No, because the Contractor has a duty to supply the Employer with every Document, given Sub-Clause
7.4.

Yes, because otherwise the Contractor doesn’t have to submit any Document until Completion of the Works as stated in Sub-Clause 1.8.

Yes, the Employer should define which documents it wants to receive from the Contractor as Contractor’s Documents in the Employer’s Requirements, as stated in Sub-Clause 5.2.

QUESTION 27
(For specific probable future events or circumstances which may adversely affect the Works, FIDIC Red and Yellow Books (edition 1999) provide a duty to notify specific parties. Which two statements are correct?
Choose all of the correct answers (multiple possibilities).)

The Notice shall be given when the Time for Completion will be affected.

Each Party shall advise the other and the Engineer of such events or circumstances, and the Engineer shall advise the Parties.

The Engineer has no obligation under General Conditions to notify the Contractor of such events.

The obligation to issue such Notice requires the Contractor to give such Notice to the Engineer.

QUESTION 28
(Under the FIDIC Yellow Book (edition 1999), any delay caused by Authorities will be considered as a cause of Delay under sub paragraph (b) of Sub-Clause 8.5 under the only condition that the Contractor has diligently followed the procedures laid down by the public authorities in the Country. Is this statement true or false?)

True

False

QUESTION 29
(Which two FIDIC Books (edition 2017) should especially be considered for use if the Employer needs the Contractor to take responsibility for the design and execution of the project. The construction will involve substantial work underground or work in other areas which tenderers cannot inspect.
Choose all of the correct answers (multiple possibilities).)

Yellow Book

Red Book

Silver Book by amending Sub-Clause 4.12 in the Particular Conditions

Silver Book without amending Sub-Clause 4.12 in the Particular Conditions

QUESTION 30
Under the FIDIC Construction Contract, which one of the following statements is correct?

For an ad-hoc DAB, a retainer fee for each DAB Member must be paid to the Member on the first day of each calendar month.

Payments of a DAB Member’s retainer fee is the sole responsibility of the Contractor.

Payment to DAB Members must be certified by the Employer.

A DAB must give its decision in writing on any dispute when requested by one of the Parties.

If all persons nominated to serve as members of an ad hoc DAB do not sign a DAB Agreement, an appointing entity can make appointments.

QUESTION 31
Under the FIDIC Red, Yellow, and Silver Books (both editions), the Employer has an obligation to give a detailed notice to the Contractor about intended changes that are material to its financial arrangements.

True

False

QUESTION 32
(In the FIDIC Yellow Book (edition 1999), the Contractor has to provide the Engineer with documents as stated in Sub-Clause 5.2. Who is responsible for ensuring there is sufficient time allocated for reviewing these documents in relation to the Schedule of the Works?)

Contractor

Engineer

Employer

QUESTION 33
(Under FIDIC Red Book (edition 1999) a notice may be delivered to which two addresses?
Choose all of the correct answers (multiple possibilities).)

The address stated in the Contract Data.

The address provided for by the recipient of the notice.

The address of the Site.

The address of the Contractor ‘ s Representative.

QUESTION 34
(Which one of the following statements is correct regarding the Employer ‘ s Representative under the FIDIC Silver Book (edition 1999)?)

The Representatives of both the Employer and the Engineer have no authority to amend the Contract at all.

The Employer may appoint an Employer ‘ s Representative to act on his behalf under the Contract.

The Employer must always appoint an Employer ‘ s Representative to act on his behalf under the Contract.

The Employer may appoint an Employer ‘ s Representative to act on his behalf under the Contract but has to consult the Contractor to agree to this Representative.

QUESTION 35
Regarding the FIDIC Silver Book (both editions), if a part of the Works is to be paid according to quantity supplied or work done, appropriate provisions must be included in the Particular Conditions. Is this statement true or false?

True

False

QUESTION 36
Under the FIDIC Red Book, which one of the following statements is correct for a claim by the Contractor?

The Employer has the authority to accept a claim by the Contractor, even in the case of the Contractor’s failure to comply with the notice requirements.

If the Engineer does not make a determination, the Employer and the Contractor are unable to agree to settle an issue that gave rise to a claim.

The Engineer’s response to the Contractor’s submission of detailed particulars that are required by the procedure for claims by the Contractor must include the Engineer’s final decision on the quantum.

It is the Employer’s Representative who must first respond to the claim by the Contractor.

The Engineer’s response to a claim by the Contractor is final and binding upon the Employer.

QUESTION 37
(You are the Contract Manager of the Employer ‘ s Representative in a Thermal Power Plant Project under FIDIC Silver Book (edition 2017). The Contractor submits two claims:
(1) USD 200,000 for additional costs due to an error in national piling standard NTS-PW-01 referenced in the Employer’s Requirements.
(2) USD 300,000 for constructing an additional flood wall due to incorrect hydrological data in Site Data (water level miscalculated).
What is your determination for the Contractor?)

The Contractor is not entitled to either of the Claims.

The Contractor is entitled to the Claim for additional costs in relation to the piling, based on errors in the Employer ‘ s Requirements only.

The Contractor is entitled to the Claim for the additional floodwall based on Unforeseeable difficulties only.

The Contractor is entitled to both claims.

QUESTION 38
Which one of the following statements is correct regarding the Provisional Sum under the FIDIC Red, Yellow, and Silver Books (edition 1999)?

The Provisional Sum cannot be issued by instruction either by the Engineer (or Employer in case of FIDIC Silver Book).

The Contractor shall, when required by the Engineer, produce proof to substantiate how it has used the Provisional Sum.

Each Provisional Sum shall not be used, in whole or in part, in accordance with instructions from the Engineer.

QUESTION 39
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 declaration of joint and several liability

A bank guarantee

A surety bond

A parent company guarantee

QUESTION 40
Which of the following obligations are relevant to the Engineer ‘ s roles with regards to insurance? [2017 Edition] (2 correct answers apply) Choose all of the correct answers (multiple possibilities).

The Engineer shall receive a copy of the evidence(s) demonstrating Contractor ‘ s payment of the necessary insurance premiums.

The Engineer is entitled to take out an insurance on behalf of the Contractor, in case the Contractor fails to extend the validity of a specific insurance.

The Engineer should continuously monitor that the Contractor ‘ s insurance policies are kept valid, and extensions are duly arranged, when necessary.

The Engineer shall immediately suspend all construction activities at the Site, in case the Contractor failed to take out any necessary insurance.