CCM Exam Dumps : Certified Contract Manager

Option D is correct because contract drafting should strategically allocate risks between parties based on who can best manage them and the Employer’s budget for risk and reward. Understanding risk appetite is key to tailoring FIDIC contracts appropriately.

Option A is exaggerated; while amendments can introduce issues, careful drafting can preserve benefits of standardization.

Option B is partly true but mixing arrangements is complex and not always straightforward.

Option C is incorrect; the Employer usually chooses the contract form.

Under the FIDIC Red Book 1999, advance payment is a sum paid to the Contractor to help cash flow early in the project. It must be repaid through deductions from interim payments according to a specified schedule.

Sub-Clause 14.5 (Advance Payment) states that the Contractor must repay the advance payment by installments, typically by the Time for Completion. If the advance payment has not been fully repaid by the Time for Completion, the outstanding balance becomes immediately due and payable by the Contractor (Option A). This ensures the Employer recovers the advance by the time the project completes.

Additionally, upon termination of the Contract (Sub-Clause 15.2 or relevant termination clauses), any outstanding balance of the advance payment becomes immediately due (Option D). This protects the Employer’s financial interest if the Contract ends prematurely.

Option B (before the Performance Certificate is issued) and Option C (before the Taking-Over Certificate is issued) are not explicitly linked in FIDIC Red Book 1999 to triggering immediate repayment of the advance payment. The Taking-Over Certificate marks practical completion and may precede the final repayment schedule, while the Performance Certificate is issued after the Defects Notification Period.

Therefore, the correct situations for immediate repayment of outstanding advance payment balance are before Time for Completion and upon termination of the Contract.

Under FIDIC 2017, Employer’s Claims are governed by Clause 20.2 [Claims For Payment and/or EOT]. The first procedural step is the submission of a Notice of Claim.

Option A is correct because the Employer must notify the Engineer of the event or circumstance giving rise to the claim. This notice must clearly describe the basis of the claim, including the relevant facts (e.g., delay, cost, or Defects Notification Period extension).

Option B is also correct. FIDIC 2017 introduces a strict 28-day time bar for both Parties. The claiming Party (including the Employer) must give notice “as soon as practicable” and no later than 28 days after becoming aware (or when it should have become aware) of the event. Failure to comply may result in loss of entitlement.

Option C is incorrect because it is irrelevant and misrepresents the structured claims procedure under Clause 20.

Option D is incorrect for the first step. While later submissions (fully detailed claim under Sub-Clause 20.2.4) require detailed particulars including contractual basis, the initial notice does not require full legal substantiation—only identification of the event/circumstance.

This structured two-step process (Notice → Fully Detailed Claim) is central to FIDIC 2017’s claims management system, ensuring early warning and proper administration of claims.