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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q69-Q74):

NEW QUESTION # 69
Regarding the FIDIC Silver Book (both editions), if a part of the Works is to be paid according to quantity supplied or work done, appropriate provisions must be included in the Particular Conditions. Is this statement true or false?

A. True
B. False

Answer: A

Explanation:
This statement is true. The Silver Book (EPC/Turnkey contracts) usually involves lump-sum payment, but if part payment is based on quantity or work done, this must be explicitly provided for in the Particular Conditions to avoid ambiguity.
Such provisions ensure clarity on payment terms in line with project specifics.
References:
FIDIC Silver Book 1999 & 2017 Editions, Sub-Clause 14 - Payment Provisions FIDIC Contract Manager Study Guide, Module on Payment Procedures

NEW QUESTION # 70
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. True
B. False

Answer: A

Explanation:
Under FIDIC Red Book (1999), the Value Engineering Clause requires the Contractor to notify the Engineer with full details and cost implications when proposing Value Engineering changes. The Engineer then follows the Variation procedure in Sub-Clause 3.5 to agree or determine the cost adjustment, which will be reflected in the Contract Price.
This ensures transparent handling of Value Engineering proposals and proper contractual adjustments.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 13.1 - Value Engineering
FIDIC Contract Manager Study Guide, Module on Variations and Value Engineering

NEW QUESTION # 71
There are four reasons that the Employer/Contractor shall advise in advance each other and the Engineer of any known or future events or circumstances.
Which two of the following statements areNOTapplicable reasons?
(Choose all correct answers - multiple possibilities)

A. Decrease the Contract Price.
B. Delay the execution of the Works or a Section.
C. Increase the performance of the Works when completed.
D. Adversely affect the work of the Contractor's Personnel.

Answer: A,C

Explanation:
Comprehensive and Detailed Explanation:
Under the FIDIC Red Book 2017 (similar principles apply in other editions), Sub-Clause 4.1 ("Contractor's General Obligations") and Sub-Clause 3.4 ("Delay Damages") require both Employer and Contractor to notify the Engineer in advance about any events or circumstances which maydelay the worksoradversely affect the Contractor's personnel or progress. This early notification ensures proper management and mitigation of risks that could impact the project timeline or quality.
* Option A (Delay the execution of the Works or a Section)is a core reason for notification since delays affect the critical path and programme, requiring possible extensions or adjustments.
* Option C (Adversely affect the work of the Contractor's Personnel)is also a valid reason because issues affecting workforce productivity or availability can impact project delivery.
On the other hand:
* Option B (Decrease the Contract Price)isnota reason to notify. Changes in contract price usually arise from variations or claims but are not a "known or future event" requiring prior notification unless linked to a variation or compensation event.
* Option D (Increase the performance of the Works when completed)is positive and does not negatively affect project progress or cost; therefore, it is not a reason for advance notification under these contract provisions.
Thus, the twonot applicablereasons are B and D.
References:
FIDIC Conditions of Contract for Construction, 2017 Edition, Sub-Clause 4.1 - Contractor's General Obligations FIDIC Conditions of Contract for Construction, 2017 Edition, Sub-Clause 3.4 - Delay Damages FIDIC Contract Manager Study Guide, Module on Communication and Reporting

NEW QUESTION # 72
Under the FIDIC Construction Contract, which one of the following statements is correct?

A. For an ad-hoc DAB, a retainer fee for each DAB Member must be paid to the Member on the first day of each calendar month.
B. Payments of a DAB Member's retainer fee is the sole responsibility of the Contractor.
C. If all persons nominated to serve as members of an ad hoc DAB do not sign a DAB Agreement, an appointing entity can make appointments.
D. Payment to DAB Members must be certified by the Employer.
E. A DAB must give its decision in writing on any dispute when requested by one of the Parties.

Answer: E

Explanation:
Under the FIDIC Conditions of Contract (particularly 2017 editions), the Dispute Adjudication Board (DAB) is a standing or ad hoc body that provides binding decisions on disputes. One key requirement is that the DAB must give its decisions in writing upon request by either Party, ensuring clarity and enforceability.
Option E is correct as the DAB's decision must be documented formally.
Option A is incorrect; the cost of the DAB is generally shared by Employer and Contractor as per the contract.
Option B is incorrect because retainer fees can be paid on different schedules, not necessarily monthly on the first day.
Option C is incorrect; payments to DAB members do not require Employer's certification but are agreed as part of the DAB contract.
Option D is partially true but not a standalone correct statement without additional context.
References:
FIDIC Red, Yellow, Silver Books 2017 Edition, Clause 21 - Disputes and DAB Procedures FIDIC Contract Manager Study Guide, Module on Claims and Dispute Resolution

NEW QUESTION # 73
The amount of an advance payment guarantee provided for pursuant to FIDIC Red and Yellow Books (both editions) may be reduced as of:

A. The date on which an amount is repaid by the Contractor as stated in the Payment Certificates
B. The date of the Taking Over Certificate
C. The Commencement Date
D. The date on which the entire advance payment is repaid as stated in the Payment Certificate

Answer: A

Explanation:
According to FIDIC Red and Yellow Books (both 1999 and 2017 editions), the advance payment guarantee amount may be progressively reduced as the Contractor repays the advance payment through deductions from interim payment certificates. This means the guarantee is reduced as per amounts repaid, not only upon full repayment.
Option D is correct: The guarantee reduces as partial repayments are certified in Payment Certificates.
Option C is incorrect because the reduction happens gradually, not only after full repayment.
Options A and B do not directly relate to the reduction mechanism of the advance payment guarantee.
References:
FIDIC Red and Yellow Books 1999 & 2017 Editions, Sub-Clause 14.2 - Advance Payment Guarantee FIDIC Contract Manager Study Guide, Module on Payment Procedures

NEW QUESTION # 74
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