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NEW QUESTION # 77
Which one statement regarding the adjustment of the Contract Price as mentioned in Sub-Clause 13.8 of FIDIC Silver Book (edition 1999) is correct?
Answer: C
Explanation:
Sub-Clause 13.8 of the FIDIC Silver Book (1999) allows the Particular Conditions to specify a formula or indices for adjusting the Contract Price for rises and falls in labour and Goods costs. The method set forth may not fully compensate for actual cost changes - it can be lower than the real fluctuations - reflecting practical and commercial considerations.
Option B is correct because the contract permits this flexibility.
Option A is incorrect; full compensation is not guaranteed.
Option C is incorrect; the adjustment can cover materials and labour but may extend beyond.
Option D is incorrect; adjustments can be calculated from different dates as specified.
References:
FIDIC Silver Book 1999 Edition, Sub-Clause 13.8 - Adjustments for Changes in Cost FIDIC Contract Manager Study Guide, Module on Payment Adjustments
NEW QUESTION # 78
Under FIDIC Red and Yellow Books (edition 2017), which two of the following elements shall form part of the revised programme?
Choose all of the correct answers (multiple possibilities)
Answer: A,C
Explanation:
Under Sub-Clause 8.3 of the FIDIC Red and Yellow Books 2017, the revised programme must reflect:
The planned sequence and timing of works including recognized holidays (Option A) to ensure realistic scheduling.
The actual progress to date, delays, and impacts on subsequent activities (Option B) so that stakeholders can manage resources and risks effectively.
Option C (remedial work) is typically not part of the main programme but may be in a separate defect rectification schedule.
Option D is too narrow; the programme should include all activities, not only undelivered materials.
References:
FIDIC Red and Yellow Books 2017 Edition, Sub-Clause 8.3 - Programme
FIDIC Contract Manager Study Guide, Module on Time and Delay Management
NEW QUESTION # 79
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?
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 # 80
When is the Employer obliged to return the Performance Security (PS) under the FIDIC Red Book (edition
1999)?
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 # 81
In a construction project using the FIDIC Silver Book (edition 1999), if the Parties prefer the dispute board to be appointed on an "ad-hoc" basis instead of as a standing Dispute Avoidance and Adjudication Board (DAAB), what is it called? (1 correct answer applies)
Answer: D
Explanation:
Under FIDIC terminology, an ad-hoc Dispute Board is known as a DAB (Dispute Adjudication Board), which is appointed for specific disputes as they arise, rather than standing continuously.
The DAAB is a standing board appointed for the project duration, providing continuous dispute avoidance and adjudication.
Option D refers to arbitration, which is a different dispute resolution method.
References:
FIDIC Silver Book 1999 Edition, Clause 20 - Dispute Adjudication Board
FIDIC Contract Manager Study Guide, Module on Dispute Boards and Resolution
NEW QUESTION # 82
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