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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q43-Q48):

NEW QUESTION # 43
The Contractor is entitled to an advance payment, it has obtained such payment and it has not yet been entirely paid back. Under FIDIC Red Book (edition 1999), in which two situations will the outstanding balance of the advance payment become immediately due?
Choose all of the correct answers (multiple possibilities).

A. If advance payment is not completely repaid before the Performance Certificate is issued.
B. If the advance payment is not completely repaid before termination of the Contract.
C. If the advance payment is not completely repaid before Time for Completion.
D. If the advance payment is not completely repaid before the Taking-Over Certificate is issued.

Answer: B,C

Explanation:
Under the FIDIC Red Book 1999, advance payment is a sum paid to the Contractor to help cash flow early in the project. It must be repaid through deductions from interim payments according to a specified schedule.
* Sub-Clause 14.5 (Advance Payment)states that the Contractor must repay the advance payment by installments, typically by the Time for Completion. If the advance payment has not been fully repaid by the Time for Completion, the outstanding balance becomes immediately due and payable by the Contractor (Option A). This ensures the Employer recovers the advance by the time the project completes.
* Additionally,upon termination of the Contract(Sub-Clause 15.2 or relevant termination clauses), any outstanding balance of the advance payment becomes immediately due (Option D). This protects the Employer's financial interest if the Contract ends prematurely.
* Option B (before the Performance Certificate is issued) and Option C (before the Taking-Over Certificate is issued) arenotexplicitly linked in FIDIC Red Book 1999 to triggering immediate repayment of the advance payment. The Taking-Over Certificate marks practical completion and may precede the final repayment schedule, while the Performance Certificate is issued after the Defects Notification Period.
Therefore, the correct situations for immediate repayment of outstanding advance payment balance arebefore Time for Completion and upon termination of the Contract.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 14.5 - Advance Payment
FIDIC Red Book 1999 Edition, Sub-Clause 15.2 - Termination by Employer (Payment obligations) FIDIC Contract Manager Study Guide, Module on Payment Procedures and Financial Management

NEW QUESTION # 44
The FIDIC Red Book (edition 1999) deals with Value Engineering Clause. It follows from this clause that the Contractor shall give notice to the Engineer with supporting particulars. Upon receiving this notice, the Engineer shall proceed in accordance with Sub-Clause 3.5 to agree or determine this Cost, which shall be included in the Contract Price.

A. False
B. True

Answer: B

Explanation:
Under FIDIC Red Book (1999), the Value Engineering Clause requires the Contractor to notify the Engineer with full details and cost implications when proposing Value Engineering changes. The Engineer then follows the Variation procedure in Sub-Clause 3.5 to agree or determine the cost adjustment, which will be reflected in the Contract Price.
This ensures transparent handling of Value Engineering proposals and proper contractual adjustments.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 13.1 - Value Engineering
FIDIC Contract Manager Study Guide, Module on Variations and Value Engineering

NEW QUESTION # 45
You are the new Contract Manager of the Contractor in a bridge project using FIDIC Yellow Book (edition
2017). The project had been suspended due to a material change in the Employer's financial arrangement. You have worked with your team to identify several failures of the Employer in carrying its obligations under the Contract. Which one of the following does NOT allow the Contractor to issue Notice to terminate the Contract?

A. The Contractor has requested the Employer but has not received any evidence that the financial arrangement is being maintained, despite having sent a notice thereto 4 months earlier.
B. A prolonged suspension for more than 1 year has affected the whole of the Works.
C. The Employer failed to comply with a final and binding determination issued by the Engineer, and such failure constitutes a material breach of the Employer's obligations under the Contract.
D. The Contractor does not receive the amount due under the latest Payment Certificate for more than 4 months after the due date.

Answer: A

Explanation:
Comprehensive and Detailed Explanation:
Option C does NOT, on its own, provide grounds for termination. The Contractor's request for evidence of financial arrangement, without further contractual breach, is insufficient to terminate.
Options A, B, and D are valid grounds for termination under FIDIC Yellow Book 2017 due to prolonged suspension, non-payment beyond allowed period, or failure to comply with binding determinations.
References:
FIDIC Yellow Book 2017 Edition, Sub-Clauses 15.1 (Suspension) and 15.2 (Termination by Contractor) FIDIC Contract Manager Study Guide, Module on Suspension and Termination

NEW QUESTION # 46
You are teaching a group of early career professionals in the Contract Management department about the FIDIC 2017 Rainbow Suite of contract, and you are explaining about the intention of Delay Damages. Which one of the following statements is correct?

A. Delay Damages is not intended to remove burden for the Employer to demonstrate and prove that it has suffered any loss or damage.
B. Delay Damages is intended to be treated as an incentive for the Contractor to perform on time.
C. Delay Damages is intended to provide full compensation to the Employer for all damages that it is expected to suffer as a result of the delay.
D. None of the above.

Answer: B

Explanation:
Delay Damages under FIDIC are primarily a pre-agreed measure to incentivize the Contractor to complete works on time rather than full compensation for all losses suffered. They simplify the process by avoiding the need for the Employer to prove actual losses.
Option A is incorrect; Delay Damages are generally not full compensation.
Option C is incorrect because Delay Damages remove the Employer's burden to prove actual loss.
Option B is the correct interpretation.
References:
FIDIC Red, Yellow, Silver Books 2017 Editions, Sub-Clause 8.7 - Delay Damages FIDIC Contract Manager Study Guide, Module on Delay Damages

NEW QUESTION # 47
Which two statements are correct regarding the FIDIC Red Book (edition 2017)?

A. Contract Data contains information which is required by certain Sub-Clauses in the General Conditions.
B. Words and expressions stated in Sub-Clause 1.1 Definitions do not apply in respect of Specifications and Drawings.
C. There is never a difference in effect whether in the Particular Conditions when the term "Works" is used, or when the term "works" is used.
D. In some cases, if a certain information is not provided in the Contract Data, the relevant Sub-Clause shall not be applicable.

Answer: A,D

Explanation:
Comprehensive and Detailed Explanation:
Option B is correct: The Contract Data provides information required by specific Sub-Clauses in the General Conditions to complete the contract.
Option D is correct: If required data is missing in the Contract Data, some Sub-Clauses may not apply.
Option A is incorrect; definitions generally apply throughout the contract including Specifications and Drawings.
Option C is incorrect; case sensitivity of terms can affect contractual meaning.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 1.1 - Definitions and Contract Data FIDIC Contract Manager Study Guide, Module on Contract Documents

NEW QUESTION # 48
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Medical Professional CCM Test Dumps.zip - CCM Exam Syllabus

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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q43-Q48):

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