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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q99-Q104):

NEW QUESTION # 99
When is the Employer obliged to return the Performance Security (PS) under the FIDIC Red Book (edition
1999)?

A. Within 21 days after the issuance of the Performance Certificate.
B. Without undue delay after the issuance of the Taking-Over Certificate.
C. Within 21 days after the issuance of the Taking-Over Certificate.
D. Without undue delay after the issuance of the Performance Certificate.

Answer: A

Explanation:
Comprehensive and Detailed Explanation:
Under FIDIC Red Book 1999, the Performance Security (or Performance Guarantee) is held to ensure the Contractor's performance during the defects liability period. The security is typically released only after the Employer issues the Performance Certificate, which confirms the completion of defects liability obligations and that the Contractor has fulfilled the contract.
The contract commonly specifies a fixed period (often 21 days) within which the Employer must return the Performance Security after issuance of the Performance Certificate (Option D). The Taking-Over Certificate (Options A and C) marks substantial completion but does not end the Contractor's obligations for defects.
References:
FIDIC Red Book 1999, Sub-Clause 10.2 - Taking-Over Certificate
FIDIC Red Book 1999, Sub-Clause 10.4 - Performance Certificate
FIDIC Red Book 1999, Sub-Clause 10.5 - Release of Performance Security
FIDIC Contract Manager Study Guide, Module on Payment Procedures and Financial Management

NEW QUESTION # 100
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. 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.
B. 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.
C. 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.
D. 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.

Answer: A

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 # 101
If defects are identified during the Tests on Completion, which one of the following options is not available to the Parties under the Contract?

A. If the defects do not affect the use of the Works for their intended purpose, the Engineer can issue the Taking-Over Certificate.
B. The Party which is not liable for the cost of rectifying defects can expect the other Party to pay the cost of performing the repeated tests.
C. The Employer can request to take over the Works.
D. By giving reasons, the Engineer can refuse to accept the Works until repeated tests have been successfully performed.

Answer: B

Explanation:
Under FIDIC contracts, when defects are identified during Tests on Completion, the Engineer may still issue the Taking-Over Certificate if the defects do not materially affect the intended use (Option A). The Engineer can refuse acceptance until defects are rectified and tests repeated (Option B). The Employer can also request to take over the works (Option C).
However, Option D is not a standard contractual provision; the contract does not stipulate that the Party not liable for rectifying defects is entitled to payment for repeated tests. Typically, costs of repeated tests due to defects are borne by the liable party.
References:
FIDIC Red, Yellow, and Silver Books, Sub-Clause 10.1 and 10.3 - Taking Over and Tests on Completion FIDIC Contract Manager Study Guide, Module on Project Close-Out and Defects

NEW QUESTION # 102
Which two statements are true under the FIDIC Red Book (edition 1999)?
(Choose all of the correct answers - multiple possibilities)

A. The Performance Certificate is deemed to constitute the acceptance of the Works.
B. The Engineer shall issue the Performance Certificate within 28 days at the latest: by the end of the Defects Notification Periods, and once the Contractor has supplied all the Contractor's Documents and completed and tested all Works including remedying any defects in accordance with the Contract.
C. The Performance Certificate constitutes acceptance of the Works and full performance of all obligations of each Party.
D. The Performance Certificate is deemed to be issued on fulfilment of certain conditions stated in the respective Sub-Clause.

Answer: B,D

Explanation:
Under the FIDIC Red Book 1999, the Performance Certificate marks the end of the Contractor's obligations under the contract (Sub-Clause 11.9). The Engineer must issue this certificate once the Defects Notification Period has ended, all Contractor's Documents are submitted, and all works including defect rectification have been completed and tested.
Option C is correct because the Engineer is required to issue the Performance Certificate within 28 days after these conditions are met.
Option D is correct as the certificate is conditional upon fulfilling specific contract requirements (e.g., completion of works, submission of documents).
Option A is incorrect because acceptance of works usually happens earlier (e.g., taking-over certificate); the Performance Certificate represents completion of all contractual obligations, not just acceptance.
Option B is incorrect as the Performance Certificate confirms contractual completion but does not necessarily imply full mutual performance beyond contract terms.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 11.9 - Performance Certificate
FIDIC Contract Manager Study Guide, Module on Project Close-Out and Final Account

NEW QUESTION # 103
Regarding the FIDIC Red Book (edition 1999): which two statements are true in respect of Building Information Modelling (BIM)?
Choose all of the correct answers (multiple possibilities).

A. BIM is one of the digital data technologies used in all aspects of project planning, investigation, design, construction and operation.
B. BIM is not related to the improvement of quality, accuracy, delivery times and cost savings.
C. For construction or building projects involving BIM, many Sub-Clauses of FIDIC Red Book (edition
2017) should be thoroughly reviewed when drafting the Particular Conditions.
D. General Conditions of Contract require the use of BIM.

Answer: A,C

Explanation:
Option B is correct: BIM is indeed a digital data technology applicable throughout the project lifecycle.
Option D is correct: Use of BIM requires careful consideration of contract clauses and appropriate adjustments in Particular Conditions.
Option A is incorrect; the 1999 edition does not mandate BIM use.
Option C is false; BIM improves quality, accuracy, delivery times, and cost efficiency.
References:
FIDIC Red Book 1999 & 2017 Editions - BIM and Contract Amendments
FIDIC Contract Manager Study Guide, Module on BIM and Digital Technologies

NEW QUESTION # 104
......

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