Question 1

You are the Contract Manager of the Engineer in a condominium project under FIDIC Yellow Book (edition 2017), with Time for Completion of 5 months. The Contractor received a Letter of Acceptance on 1 May 2022. The Contract Agreement was signed on 1 June 2022. The Contract Agreement states that the Commencement Date shall be notified by the Engineer, but it shall be no later than 14 days after the signing of the Contract Agreement, subject to the issuance of the construction permit. 1 July 2022 is the first day the Engineer was at Site. On the same day, the Engineer issued a Notice to the Contractor that the Commencement Date shall be 15 July 2022. However, the construction permit was issued only on 1 August 2022. The Project was completed on 1 December 2022. After completion, the Employer submitted a claim for Delay Damages. Following consultations, the Parties could not reach agreement on the Commencement Date. What is the correct Commencement Date?

Options :

A : 12 June 2022

B : 15 June 2022

C : 15 July 2022

D : 1 August 2022

Answer: D

Question 2

Under the FIDIC Yellow Book (both editions), the Contract is administered by the Employer (unless it appoints an Employer's Representative) who endeavours to reach agreement with the Contractor on each claim. Is this statement true or false?

Options :

A : True

B : False

Answer: A

Question 3

Which of the following cases will allow the Employer to claim under the Performance Security? [2017 Edition] (2 correct answers apply) Choose all of the correct answers (multiple possibilities).

Options :

A : The Contractor failed to renew the Tender Security.

B : The Contractor abandons the Works and the Employer did not issue Notice of termination.

C : The Employer had submitted a claim under Sub-Clause 20.2.

D : The Engineer had issued instruction to replace part of the Works.

E : The Contractor failed to extend the validity of the Performance Security.

Answer: A,E

Question 4

Which two of the following statements are correct regarding Dispute under the FIDIC Red, Yellow, and Silver Books (edition 2017)? Choose all of the correct answers (multiple possibilities)

Options :

A :

In case the Engineer refuses to issue a Performance Certificate or to issue one with a correct date under Sub-Clause 11.9, and the Contractor has disagreed with the requested entitlement or relief in connection with this refusal, Dispute shall be deemed to have arisen.

B :

If a Party is dissatisfied with the determination and has given Notice of Dissatisfaction (NOD) to the other party within a strict 28-day time limit, a Dispute arises and either Party may proceed under SubClause 21.4 to obtain a DAAB decision on it.

C :

The Dispute must be submitted to the Dispute Avoidance and Adjudication Board (DAAB) within 42 days, otherwise the NOD is deemed to have lapsed and is no longer valid.

D : Both 'Disagreement' and 'Dispute' are defined terms under the Conditions of Contract.

Answer: A,B

Question 5

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?

Options :

A : A prolonged suspension for more than 1 year has affected the whole of the Works.

B : The Contractor does not receive the amount due under the latest Payment Certificate for more than 4 months after the due date.

C : 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

D : 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.

Answer: C

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