Free FIDIC CCM Practice Exam with Questions & Answers | Set: 2

Under FIDIC 2017, Clause 20 introduces a structured and unified claims procedure applicable to both Contractor’s and Employer’s Claims. Claims are categorized broadly into:

Claims for time and/or money (Sub-Clause 20.2), and

Other claims (e.g., disputes or matters under Sub-Clause 20.1(c)).

Option A is correct. The 28-day time bar under Sub-Clause 20.2.1 applies to all claims for time and/or money and is a fundamental procedural requirement. Importantly, unlike FIDIC 1999, this time bar applies equally to both Parties, reinforcing fairness and discipline in claims management.

Option C is also correct. Claims under Sub-Clause 20.1(a) and (b) (typically relating to payment and/or extension of time) are processed under Sub-Clause 20.2, and the Engineer (or Employer’s Representative in the Silver Book) must agree or determine the claim in accordance with Sub-Clause 3.7 (Red/Yellow) or 3.5 (Silver).

Option B is incorrect because claims under 20.1(c) are not handled through Sub-Clause 3.7/3.5 in the same structured determination process as time/money claims.

Option D is incorrect because FIDIC 2017 clearly applies the time bar to both Employer and Contractor claims, which is a key update from earlier editions.

This reflects FIDIC 2017’s emphasis on symmetry, procedural clarity, and proactive claim management.

Under FIDIC Yellow Book 1999, Sub-Clause 4.24 (“Unforeseeable Physical Conditions”) deals with unexpected discoveries such as archaeological finds. The Engineer’s role includes ensuring site safety, notifying the Employer and relevant authorities, and managing the implications through variations.

Option B reflects best practice: securing the site, appointing guards, notifying Employer and authorities, and requesting a formal Variation Notice to cover costs and entitlement to extension of time.

Options A and D are unsafe or legally risky actions that could damage the find and breach legal obligations. Option C delays the necessary immediate protective actions.

Under the FIDIC Silver Book 1999 (Conditions of Contract for EPC/Turnkey Projects), the Employer must specify clearly in the Employer’s Requirements which Contractor’s Documents are to be submitted. Sub-Clause 5.2 states that the Contractor must submit all documents listed in the Employer’s Requirements, ensuring clarity and enabling the Employer to control the documentation process.

Option D is correct because it highlights the need for Employer’s Requirements to define the scope and content of the Contractor’s Documents.

Option A is incorrect; although operation and maintenance manuals are generally required, they are part of the specified Contractor’s Documents, not automatically required without Employer’s direction.

Option B is incorrect as the Contractor’s duty to supply documents is limited to those specified.

Option C is incorrect because documentation obligations are ongoing and not just at completion.

Option C is correct: The Contractor is entitled to financing charges (interest) on late payments, calculated as per the percentage specified in the Contract Data or corresponding Sub-Clause.

Option D is correct: The Contractor can suspend works or reduce progress after giving due notice, usually 21 days, if payments are not made on time.

Option A is incorrect; termination is not automatic right after the payment deadline expires.

Option B is incorrect; suspension requires prior notice rather than immediate action.

Option E is incorrect because the Contractor has additional remedies such as suspension, beyond just financing charges.

Local procurement laws, regulations, and internal governance rules often apply in addition to or alongside FIDIC contract provisions. Employers, whether public or private, must comply with applicable national or sector-specific rules, which may affect procurement procedures, documentation, and contract award processes.

Option C is correct because procurement requirements depend on local legal systems, the nature of the Employer, and applicable governance.

Option A is incorrect as FIDIC contracts provide contractual frameworks but do not override local legal obligations.

Option B is incorrect because many Employers have procurement policies.

Option D is incorrect since private entities may also be subject to procurement laws or internal policies.

This statement is true. Under FIDIC Silver Book 1999, Sub-Clause 8.6, the Employer can instruct the Contractor to submit a revised programme to meet the contractual Time for Completion. If, after such instruction, the revised programme still shows the Works will not complete on time, the Employer may claim additional costs (such as delay damages or compensation) due to continued delay.

Thus, the Employer’s right to claim additional costs is contingent on the revised programme not enabling timely completion.

Under the FIDIC Red Book 1999, discharge becomes effective when the Contractor has received full payment certified by the Final Payment Certificate and the return of the Performance Security (Sub-Clause 14.10). Both elements must be completed for the contract to be considered fully discharged, releasing the Contractor from further obligations or liabilities under the contract.

Option A is incomplete as payment alone does not fully discharge the Contractor.

Option B is incomplete as return of Performance Security alone is insufficient.

Option D is incorrect because the contract does not require a discharge notice signed by the Employer beyond these conditions.

Option C is correct: The Contractor must revise the programme whenever it no longer accurately reflects progress or obligations.

Option D is correct: The Contractor must also revise the programme upon formal request if it fails contract compliance or progress reflection.

Option A is incorrect; the Contractor has ongoing obligations beyond formal requests.

Option B is incorrect; no 42-day threshold applies in the contract for revision.

All main FIDIC contract editions contain provisions that allow the Employer or Engineer to propose or instruct the Contractor to employ certain subcontractors (e.g., nominated subcontractors). The Contractor retains the right to refuse such subcontractors only for reasonable cause, which must be communicated formally.

This mechanism protects the Employer’s interests in subcontractor selection while safeguarding the Contractor’s right to reject subcontractors that may not be competent or suitable.

Therefore, the statement is true.