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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q107-Q112):

NEW QUESTION # 107
Under the FIDIC Red Book (edition 2017), the Engineer has suspended works to come to a change of the design of a part of the Works. After expiry of 84 days of suspension, the Contractor gave notice thereof.
Following this notice, the suspension was not lifted within 28 days. What two statements are correct in such a situation?

Answer: B,D

Explanation:
Under FIDIC Red Book 2017, if the Engineer suspends works for more than 84 days and the Contractor notifies the Engineer, but the suspension is not lifted within 28 days, the Contractor may terminate the contract if the suspension affects the whole of the Works (Option A).
Additionally, the Contractor must give a second notice before termination (Option C). This process ensures proper communication and adherence to contractual procedures.
Option B is incorrect; termination is allowed under specified conditions.
Option D is incorrect; omission of work is not generally permitted without formal termination.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 8.9 - Suspension by Engineer
FIDIC Contract Manager Study Guide, Module on Suspension and Termination


NEW QUESTION # 108
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?

Answer: A

Explanation:
Under FIDIC Red Book 1999, price adjustments after the Time for Completion are based on the indices or prices applicable on the date 49 days before the expiry of the Time for Completion, not the current index. This prevents the Contractor from benefiting from price fluctuations after the contract period.
This clause ensures fairness by locking the price basis as of a fixed reference date, protecting the Employer from increased costs due to delays.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 13.8 - Adjustments for Changes in Cost FIDIC Contract Manager Study Guide, Module on Price Adjustment


NEW QUESTION # 109
Towards the end of implementing a varied work (initiated originally by the Contractor as a " Value Engineering Proposal " , relevant designs provided by the Contractor) it turned out, that there is some part of it not complying with the otherwise prevailing standards. Which statements are correct in this situation?
[FIDIC Red Book, 2017 Edition]
Choose all of the correct answers (multiple possibilities).

Answer: A,C

Explanation:
Option C is correct: The Contractor is obligated to rectify any non-compliance with prevailing standards promptly.
Option D is correct: The Contractor carries responsibility for design fitness and correctness, even if the Engineer has approved or not objected to the design.
Option A is incorrect; Engineer approval does not absolve the Contractor from responsibility for defective design or works.
Option B is not necessarily required; only non-compliant parts need correction, not entire varied works.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 4.1 and Clause 13 - Contractor's Obligations and Variations FIDIC Contract Manager Study Guide, Module on Variations and Design Responsibilities


NEW QUESTION # 110
Which two statements are true under the FIDIC Red Book (edition 1999)?
(Choose all of the correct answers - multiple possibilities)

Answer: B,D

Explanation:
Under the FIDIC Red Book 1999, the Performance Certificate marks the end of the Contractor's obligations under the contract (Sub-Clause 11.9). The Engineer must issue this certificate once the Defects Notification Period has ended, all Contractor's Documents are submitted, and all works including defect rectification have been completed and tested.
Option C is correct because the Engineer is required to issue the Performance Certificate within 28 days after these conditions are met.
Option D is correct as the certificate is conditional upon fulfilling specific contract requirements (e.g., completion of works, submission of documents).
Option A is incorrect because acceptance of works usually happens earlier (e.g., taking-over certificate); the Performance Certificate represents completion of all contractual obligations, not just acceptance.
Option B is incorrect as the Performance Certificate confirms contractual completion but does not necessarily imply full mutual performance beyond contract terms.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 11.9 - Performance Certificate
FIDIC Contract Manager Study Guide, Module on Project Close-Out and Final Account


NEW QUESTION # 111
When is the Employer obliged to return the Performance Security (PS) under the FIDIC Red Book (edition
1999)?

Answer: B

Explanation:
Under FIDIC Red Book 1999, the Performance Security (or Performance Guarantee) is held to ensure the Contractor's performance during the defects liability period. The security is typically released only after the Employer issues the Performance Certificate, which confirms the completion of defects liability obligations and that the Contractor has fulfilled the contract.
The contract commonly specifies a fixed period (often 21 days) within which the Employer must return the Performance Security after issuance of the Performance Certificate (Option D). The Taking-Over Certificate (Options A and C) marks substantial completion but does not end the Contractor's obligations for defects.
References:
FIDIC Red Book 1999, Sub-Clause 10.2 - Taking-Over Certificate
FIDIC Red Book 1999, Sub-Clause 10.4 - Performance Certificate
FIDIC Red Book 1999, Sub-Clause 10.5 - Release of Performance Security
FIDIC Contract Manager Study Guide, Module on Payment Procedures and Financial Management


NEW QUESTION # 112
......

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