Selected CCM Contract Manager Questions Answers

Under FIDIC Red Book 2017, Clause 1.1 [Definitions] and Clause 1.5 [Priority of Documents] define the composition and hierarchy of the Contract. The Contract is not limited to only General and Particular Conditions; it includes multiple documents such as the Contract Agreement, Letter of Acceptance, Letter of Tender, Specifications, Drawings, and Schedules. Therefore, Option A is incorrect.

Option B is correct. The term “Conditions of Contract” explicitly refers to the General Conditions as modified or amended by the Particular Conditions. This reflects how Particular Conditions adapt the standard FIDIC provisions to project-specific requirements while forming a single integrated set of contractual conditions.

Option C is incorrect because Contract Data forms part of the Particular Conditions, not the General Conditions. It contains project-specific data that complements and modifies the General Conditions.

Option D is correct. The Contract Agreement, Letter of Acceptance, and Letter of Tender are explicitly listed as core Contract documents under FIDIC 2017. These documents establish the legal formation of the Contract and define the agreed scope, price, and commitments between the Parties.

This structure ensures clarity, proper hierarchy, and enforceability of contractual obligations in FIDIC contracts.

Under the FIDIC Silver Book 1999, Clause 9 governs Tests on Completion, while Clause 12.4 addresses Tests after Completion. These provisions define performance verification before and after Taking-Over.

Option A is correct. Under Sub-Clause 9.4 [Failure to Pass Tests on Completion], if the Works fail the Tests on Completion, the Employer has several options, including accepting the Works subject to a reduction in the Contract Price. This reflects the commercial flexibility within FIDIC, allowing completion despite minor deficiencies, with financial adjustment.

Option D is also correct. Under Sub-Clause 12.4 [Failure to Pass Tests after Completion], if the Works fail post-completion performance tests, the Contractor may be required to pay performance damages. Once these damages are paid, the Works may be deemed to have satisfied the required performance levels. This mechanism ensures that operational deficiencies are compensated financially rather than requiring physical rectification in all cases.

Option B is incorrect because both Tests on Completion and Tests after Completion can coexist within the same contract; they serve different purposes (pre-taking-over vs post-taking-over performance verification).

Option C is incorrect because Tests after Completion are generally carried out by or under the responsibility of the Contractor, not solely the Employer, although the Employer may witness them.

These provisions demonstrate FIDIC’s structured approach to quality assurance and risk allocation across different project stages.

Sub-Clause 13.8 of the FIDIC Silver Book (1999) allows the Particular Conditions to specify a formula or indices for adjusting the Contract Price for rises and falls in labour and Goods costs. The method set forth may not fully compensate for actual cost changes — it can be lower than the real fluctuations — reflecting practical and commercial considerations.

Option B is correct because the contract permits this flexibility.

Option A is incorrect; full compensation is not guaranteed.

Option C is incorrect; the adjustment can cover materials and labour but may extend beyond.

Option D is incorrect; adjustments can be calculated from different dates as specified.

According to the FIDIC Red Book 1999, Sub-Clause 14.10 – Application for Final Payment Certificate and related procedures allow the Contractor to submit the Final Statement, which includes the final account of all sums due.

If after submission the Contractor identifies errors or omissions in the Final Statement, the Contractor is generally entitled to submit corrections or adjustments to that statement before the issuance of the Final Payment Certificate. This ensures that the final account accurately reflects all amounts due.

The Engineer reviews the Final Statement and may seek clarifications or adjustments. The contract typically allows the Contractor to correct or revise the Final Statement as part of this review process.

However, once the Final Payment Certificate is issued and accepted by the parties, it becomes more difficult for the Contractor to amend the Final Statement without formal agreement or dispute resolution.

Hence, prior to certification, the Contractor can correct the Final Statement.