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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q54-Q59):

NEW QUESTION # 54
Which one answer holds two statements that are both correct with regards to risks and key considerations regarding the Golden Principles?

Answer: D

Explanation:
Option A correctly reflects Golden Principles emphasizing the Employer's objective of obtaining value for money and the importance of avoiding disputes as much as possible.
Other options either misrepresent the balanced nature of FIDIC principles or promote unfair or unbalanced positions.
References:
FIDIC Contract Management Guidelines - Golden Principles
FIDIC Contract Manager Study Guide, Module on Legal and Ethical Considerations


NEW QUESTION # 55
(Under the FIDIC Red, Yellow, and Silver Books (both editions), the Contractor has a contractual obligation to give notice to the Employer if it discovers errors or defects of a technical nature. Is this statement true or false?)

Answer: A

Explanation:
Under all FIDIC standard forms (Red, Yellow, and Silver Books, both 1999 and 2017 editions), the Contractor has a clear contractual obligation to notify the Employer (or the Engineer, depending on the form) if it discovers errors, faults, or defects in documents or instructions of a technical nature.
This obligation is explicitly stated in Sub-Clause 1.9 [Errors in the Employer's Requirements] (particularly in Yellow and Silver Books) and similarly reflected in provisions related to documents, drawings, and instructions in the Red Book. The Contractor is required to carefully examine the documents provided and promptly give notice upon identifying any discrepancies, ambiguities, or technical defects.
The purpose of this obligation is to ensure early detection and correction of design or specification issues, thereby minimizing delays, rework, and disputes. It also reflects the principle of cooperation and proactive risk management embedded in FIDIC contracts.
Failure by the Contractor to notify such errors may result in loss of entitlement to additional time or cost if the issue later impacts execution. Therefore, this notification duty is both a technical and contractual safeguard.
Thus, the statement is true, as FIDIC imposes a clear obligation on the Contractor to notify discovered technical errors or defects.


NEW QUESTION # 56
(If a Section or Part has been taken-over but the Taking-Over Certificate has not been issued for the Works, the Engineer has the right to instruct a Variation to that Section/Part. Is this statement true or false?)

Answer: B

Explanation:
Under FIDIC Red and Yellow Books (both 1999 and 2017), once a Section or Part of the Works has been taken over by the Employer, even if a formal Taking-Over Certificate has not yet been issued, the practical effect is that the Works (or relevant Section) are considered completed and under the Employer's control.
Clause 13 [Variations and Adjustments] allows the Engineer to instruct Variations only before the Works or a Section are taken over. After taking-over, the Contractor's obligations shift from execution to remedying defects under Clause 11 [Defects Notification Period] . At this stage, the Contractor is no longer required to carry out new work beyond rectification unless separately agreed.
Therefore, once a Section/Part is taken over, the Engineer cannot instruct a Variation to that part of the Works. Any further work would require a separate agreement or contract, not a Variation under Clause 13.
This reflects a key FIDIC principle: Variations relate to the execution phase, not the post-completion (defects liability) phase. Thus, the statement is false.


NEW QUESTION # 57
Which one of the following statements is correct regarding the Provisional Sum under the FIDIC Red, Yellow, and Silver Books (edition 1999)?

Answer: A

Explanation:
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.
References:
FIDIC Red, Yellow, and Silver Books 1999 Edition, Sub-Clause 13.2 - Provisional Sums FIDIC Contract Manager Study Guide, Module on Payment Procedures


NEW QUESTION # 58
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?

Answer: B

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 # 59
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