CCM Exam Questions Tutorials

Option A is correct. Under Sub-Clause 11.9 (Performance Certificate) refusal or incorrect issuance by the Engineer, combined with disagreement by the Contractor, may cause a Dispute to arise.

Option B is correct. If a Party is dissatisfied with a determination, it must give a Notice of Dissatisfaction (NOD) within 28 days to escalate the matter to a Dispute, allowing either Party to refer it to the DAAB as per Sub-Clause 21.4.

Option C is incorrect. The contract does not specify a 42-day time limit for submission to DAAB after NOD; timelines vary by contract and stage.

Option D is incorrect. ‘Disagreement’ is not a formally defined term in FIDIC contracts, whereas ‘Dispute’ is.

This statement is false. Acceptance of a revised programme that shows completion within the Time for Completion does not automatically entitle the Contractor to extra payment. The Contractor must demonstrate additional costs arising from the instruction or circumstances to claim payment.

The acceptance of a compliant programme is a scheduling and administrative matter, not a compensation guarantee.

According to the FIDIC Yellow Book 2017, the Commencement Date is the date notified by the Engineer as the date on which the Contractor shall start the execution of the Works (Sub-Clause 8.1). In this case, although the Engineer notified 15 July 2022 as the Commencement Date, it was subject to the issuance of the construction permit. Since the construction permit was only obtained on 1 August 2022, work could not legally commence before that date.

FIDIC recognizes that the Contractor cannot be expected to start before all necessary permissions are granted. Hence, the effective Commencement Date must be the earliest date on which the Contractor can legally commence work, i.e., the date when the permit was issued (1 August 2022). The contract’s requirement that the Commencement Date notification occur no later than 14 days after signing is subject to actual readiness conditions (permit availability).

Therefore, for purposes of delay and completion, the Commencement Date is 1 August 2022. This affects the calculation of the Time for Completion and any delay claims accordingly.

The key requirement in this scenario is certainty of cost and time, particularly because the Employer intends to secure financing from a financial institution. Lenders typically require a high degree of predictability regarding project completion date and final contract price.

The FIDIC Silver Book 2017 (EPC/Turnkey Contract) is specifically designed for such situations. Under this form, the Contractor assumes full responsibility for both design and construction, as well as a significant portion of project risks, including many that would otherwise remain with the Employer under other FIDIC forms. This results in a lump-sum, fixed-price contract with greater certainty in final cost and schedule.

In contrast, the Red Book allocates design responsibility to the Employer and allows for more variability due to remeasurement and variations, making cost less predictable. The Yellow Book, although design-build, still allows more balanced risk sharing and potential adjustments, which can reduce price certainty compared to the Silver Book.

From a contract management perspective, the Silver Book is commonly used for privately financed infrastructure or projects requiring strong lender confidence, as it minimizes Employer risk and enhances bankability.

Therefore, for a hospital project requiring financial backing and maximum certainty in cost and time, the Silver Book is the most appropriate choice.