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1. 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).
A) The Contractor abandons the Works and the Employer did not issue Notice of termination.
B) The Employer had submitted a claim under Sub-Clause 20.2.
C) The Contractor failed to renew the Tender Security.
D) The Contractor failed to extend the validity of the Performance Security.
E) The Engineer had issued instruction to replace part of the Works.
2. (You are the Contract Manager for the Engineer in a highway project using FIDIC Red Book (edition 1999).
There is a Schedule of cost indexation included in the Contract. The project must be completed by 31 December of this year. If the Contractor fails to complete the Works by then, how will the adjustment of prices take place thereafter? (1 correct answer applies))
A) Either the current index/price, or index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works, whichever agreed by Parties.
B) Either the current index/price, or index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works, whichever is more favourable to the Employer.
C) The current index or price.
D) Each index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works.
3. 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
4. Under the FIDIC Construction Contract (Red Book), which of the following amendments do NOT comply with the FIDIC Golden Principles? [1999 Edition] (2 correct answers apply) Choose all of the correct answers (multiple possibilities).
A) The Payment shall be released by the Employer within 180 days calculated from receiving the Contractor ' s Monthly Statement
B) Deletion of Sub-Clauses 20.2 - 20.4 for a Project constructed in United Arab Emirates
C) The Contractor is responsible for the performance of the Nominated Subcontractors
D) The DAB Decision is final and binding
5. You are the Contract Manager of the Engineer and person Y is the Contract Manager of the Employer in a construction project under FIDIC 2017 Red Book. The project is late in schedule and Y has issued Employer ' s claim on Delay Damages. You have asked Y to consider whether the Contractor ' s delay to completion is a reflection of cash-flow shortfall from interim payments before making deductions to the Contractor ' s payment. Y replied that even if the Contractor pays Delay Damages to the Employer, the Contractor is still obliged to complete the Works and is not relieved from its duties and obligations. You warned Y of the risks of further reduction of cash-flow by the deduction of Delay Damages from payments. As this could worsen the situation of the Contractor, leading to further delays to the completion of the Works. Who is right?
A) Both you and Y are wrong.
B) Both you and Y are both correct.
C) You are correct, Y is wrong.
D) You are wrong, Y is correct.
Solutions:
| Question # 1 Answer: C,D | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: A,B | Question # 5 Answer: B |
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