CCM FIDIC Certified Contract Manager Free Practice Exam Questions (2025 Updated)

Comprehensive and Detailed Explanation:

Option A is correct: Certification and payment of interim payments are conditional on Employer’s receipt of the Contractor’s appointment and the Advance Payment Guarantee (Sub-Clause 14.2.1).

Option D is correct: Payment also requires receipt of the Contractor’s statement supported by relevant documentation.

Option B alone is insufficient without supporting documents.

Option C relates to appointment and performance security but is not a stated precondition for payment certification.

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.

Comprehensive and Detailed Explanation:

Under FIDIC Red Book 1999, advance payment is intended to assist the Contractor in financing the mobilization and early works costs before the Contractor begins receiving regular payments for work performed (Option A). It is not a payment for work already completed, so Option B is incorrect.

The General Conditions provide that the advance payment is usually made in a lump sum or agreed instalments and that the Employer makes the payment in advance (Option C is partially true but generally it can be one or multiple instalments, depending on contract terms).

Importantly, the advance payment must be repaid by the Contractor through deductions from subsequent interim payments (Option D), ensuring the Employer recovers the advanced funds as the work progresses.

According to the FIDIC Yellow Book 2017, the Commencement Date is the date notified by the Engineer as the date on which the Contractor shall start the execution of the Works (Sub-Clause 8.1). In this case, although the Engineer notified 15 July 2022 as the Commencement Date, it was subject to the issuance of the construction permit. Since the construction permit was only obtained on 1 August 2022, work could not legally commence before that date.

FIDIC recognizes that the Contractor cannot be expected to start before all necessary permissions are granted. Hence, the effective Commencement Date must be the earliest date on which the Contractor can legally commence work, i.e., the date when the permit was issued (1 August 2022). The contract’s requirement that the Commencement Date notification occur no later than 14 days after signing is subject to actual readiness conditions (permit availability).

Therefore, for purposes of delay and completion, the Commencement Date is 1 August 2022. This affects the calculation of the Time for Completion and any delay claims accordingly.

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.

Under the FIDIC Red and Yellow Books 1999 editions, the Engineer acts as the Employer's representative with authority delegated under the contract. When an instruction requires the Employer’s prior approval, it is primarily the Engineer’s responsibility to obtain that approval before issuing the instruction to the Contractor.

The Contractor isnot contractually required to verifywhether the Engineer has obtained the Employer’s approval. The Contractor is generally entitled to rely on the Engineer’s instructions as valid and binding unless there is clear evidence to the contrary.

This principle avoids placing an undue administrative burden on the Contractor and maintains the hierarchical contract administration structure, where the Engineer is the primary point of contact and decision-maker.

Option B is correct: Notices are compulsory when required and must reference the relevant Sub-Clause to be valid.

Option D is correct: Notices are formal written communications and must comply with the contract’s prescribed procedures.

Option A is incorrect; notices are often mandatory, not merely recommended.

Option C is incorrect; notices are obligations for all Contract Participants, not just the Engineer.

Dayworksrefer to works executed on a time basis (e.g., labor and plant) with payment made according to predetermined rates rather than a lump sum or unit rate contract price.

Option Aisincorrect. Even if a Daywork Schedule is not initially included, the dayworks Sub-Clause (e.g., Sub-Clause 13.7 in Red and Yellow Books, 13.8 in Silver Book 1999) still applies to dayworks ordered during the contract execution. The schedule facilitates pricing, but the Sub-Clause governs the method and conditions for dayworks.

Option Biscorrect. The dayworks Sub-Clause is applicable not only to traditional construction works but can also be applied to other types of works, such as variations or additional works that cannot be precisely measured or foreseen and are charged on a time basis.

Option Cisincorrect. The dayworks Sub-Clause is used in all FIDIC standard forms (Red, Yellow, and Silver Books), not only for remeasurement in the Red Book. In the Yellow Book (plant and design-build) and Silver Book (EPC/turnkey), dayworks are similarly applicable for certain variations or unforeseen works.

Option Discorrect. The Engineer (in Red and Yellow Books) or the Employer (in the Silver Book, where the Engineer’s role is limited) may instruct that a variation be executed on a daywork basis. This instruction is typically used when the scope or quantity cannot be reasonably pre-determined.