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Medical Professional CCM PDF

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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q64-Q69):

NEW QUESTION # 64
(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? (1 correct answer applies))

A. Either the current index/price, or index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works, whichever is more favourable to the Employer.
B. The current index or price.
C. Either the current index/price, or index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works, whichever agreed by Parties.
D. Each index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works.

Answer: A

Explanation:
Under FIDIC Red Book 1999, Sub-Clause 13.8 [Adjustments for Changes in Cost] governs the mechanism for price adjustment based on cost indices. A critical provision applies when the Contractor fails to complete the Works within the Time for Completion.
In such circumstances, FIDIC protects the Employer against additional cost increases resulting from Contractor-caused delay. The clause explicitly states that the adjustment of prices after the contractual completion date shall be calculated using whichever index is more favourable to the Employer between:
* the indices applicable at the time the work is actually carried out (current index), and
* the indices applicable 49 days before the expiry of the Time for Completion.
This ensures that the Contractor does not benefit from inflation or cost escalation occurring after the contractual completion date if the delay is attributable to the Contractor. It reinforces the principle that the Contractor bears the financial consequences of delays under its responsibility.
Options A and B are incomplete because they ignore the comparison mechanism. Option D is incorrect because the rule is predefined and not subject to further agreement.
Thus, Option C correctly reflects the FIDIC contractual mechanism for price adjustment after delayed completion.

NEW QUESTION # 65
The Contractor is entitled to an advance payment. Applying FIDIC Red Book (edition 1999), which two of the following statements are correct?
Choose all of the correct answers (multiple possibilities):

A. The advance payment is to help the Contractor to finance some of its early cost and expenditure until it becomes entitled to first (non-interim) payment.
B. The advance payment reflects the amount of works the Contractor has already performed up to the moment such advance payment is performed.
C. Under the General Conditions, the advance payment will be repaid by deducting all amounts from invoices until the entire advance payment is repaid.
D. Under the General Conditions, the amount of advance payment is to be paid in full by the Employer through one instalment.

Answer: A,C

Explanation:
Under FIDIC Red Book 1999, advance payment is intended to assist the Contractor in financing the mobilization and early works costs before the Contractor begins receiving regular payments for work performed (Option A). It is not a payment for work already completed, so Option B is incorrect.
The General Conditions provide that the advance payment is usually made in a lump sum or agreed instalments and that the Employer makes the payment in advance (Option C is partially true but generally it can be one or multiple instalments, depending on contract terms).
Importantly, the advance payment must be repaid by the Contractor through deductions from subsequent interim payments (Option D), ensuring the Employer recovers the advanced funds as the work progresses.
References:
FIDIC Red Book 1999, Sub-Clause 14.2 - Advance Payment
FIDIC Contract Manager Study Guide, Module on Payment Procedures and Financial Management

NEW QUESTION # 66
Applying FIDIC Silver Book (edition 1999), which one of the following elements shallnotform part of the time Programme/revised programme?

A. The sequence and timing of inspections and tests.
B. The remedial work (if any) instructed under Sub-Clause 7.6.
C. The intended order of the works.
D. Review periods under Sub-Clause 5.2.

Answer: B

Explanation:
Comprehensive and Detailed Explanation:
According to the FIDIC Silver Book, 1999 Edition (The Conditions of Contract for EPC/Turnkey Projects), the Contractor is required under Sub-Clause 8.3 ("Programme") to submit a time programme that illustrates the sequence and timing of the works, including milestones and key events. The intended order of the works (Option A), sequence and timing of inspections and tests (Option B), and review periods (Option D) related to contract management processes such as approval of design or submissions (Sub-Clause 5.2) are integral to effective scheduling and coordination.
However,remedial work instructed under Sub-Clause 7.6, which concerns remedying defects or damage, is generally not part of the initial or revised programme. Instead, remedial works are typically handled as separate tasks or incorporated into specific defect liability or rectification schedules after the main programme has been executed. Such remedial works arise from defects liability obligations and do not belong to the original or revised time programme used to plan the main construction phases.
This distinction is important because the programme reflects planned works execution, whereas remedial work is reactive and may be scheduled separately under defects liability clauses or final project close-out arrangements.
References:
FIDIC Silver Book 1999 Edition, Clause 8.3 - Programme
FIDIC Silver Book 1999 Edition, Clause 7.6 - Remedial Work
FIDIC Contract Manager Study Guide, Module on Time and Delay Management

NEW QUESTION # 67
(Which one of the following statements regarding FIDIC Golden Principles is correct?)

A. The FIDIC Golden Principles only apply to handling the General Conditions of a contract and should not be taken into account when preparing the Particular Conditions.
B. The Particular Conditions can be changed under the condition that the balance of risk/reward allocation provided in the General Conditions provides for significantly less risk to the Contractor.
C. The Particular Conditions do not have to be drafted clearly and unambiguously, as long as the Employer understands the meaning of the risk allocation.
D. The Particular Conditions must not change the balance of risk/reward allocation provided in the General Conditions.

Answer: D

Explanation:
The FIDIC Golden Principles (introduced in 2019) are intended to preserve the integrity and international recognition of FIDIC standard forms. One of the core principles (GP2) explicitly states that the Particular Conditions should not alter the fundamental balance of risk and reward as established in the General Conditions.
Option B correctly reflects this requirement. The allocation of risks in FIDIC contracts is carefully structured to ensure fairness and clarity between the Employer and the Contractor. Any significant shift in this balance through Particular Conditions would undermine the purpose of using a standardized FIDIC contract and could introduce uncertainty, disputes, and reduced bankability.
Option A is incorrect because another Golden Principle (GP1) requires that all provisions, including Particular Conditions, must be drafted clearly and unambiguously.
Option C is incorrect because even if the change appears favorable to one party (e.g., reducing Contractor risk), altering the agreed balance is still contrary to the Golden Principles.
Option D is incorrect because the Golden Principles apply to the entire contract, including both General and Particular Conditions, ensuring consistency and proper application.
Thus, maintaining the original risk/reward allocation is a fundamental requirement under the FIDIC Golden Principles.

NEW QUESTION # 68
(Which two statements are correct for the FIDIC Red Book (edition 2017)?
Choose all of the correct answers (multiple possibilities).)

A. The Contract includes the General Conditions and Particular Conditions, and no other documentation.
B. Contract Agreement, Letter of Acceptance and Letter of Tender are part of the Contract.
C. Conditions of Contract means these General Conditions as amended by Particular Conditions.
D. Contract Data is part of General Conditions of Contract.

Answer: B,C

Explanation:
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.

NEW QUESTION # 69
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