Question 1

Under FIDIC Red and Yellow Books (edition 2017), which two of the following elements shall form part of the revised programme? Choose all of the correct answers (multiple possibilities)

Options :

A : All internationally recognized holiday periods.

B : The actual progress to date, any delay to such progress and the effects of such delay on other activities (if any).

C : The sequence and timing of the remedial work.

D : Only the delivery dates of Plant and Materials which have not been delivered on Site yet.

Answer: A,B

Question 2

For the FIDIC Red Book (both editions), the Contractor is required to submit a progress report monthly. When does the Contractor's reporting requirement end?

Options :

A : After issuance of the Taking-Over Certificate.

B : After issuance of the Performance Certificate.

C : At the Date of Completion of the Works (irrespective of whether there is minor outstanding work to be performed).

D : Until all outstanding works as stated in the Taking-Over Certificate are completed.

Answer: D

Question 3

You are the Contract Manager of the Engineer in a condominium project under FIDIC Yellow Book (edition 2017), with Time for Completion of 5 months. The Contractor received a Letter of Acceptance on 1 May 2022. The Contract Agreement was signed on 1 June 2022. The Contract Agreement states that the Commencement Date shall be notified by the Engineer, but it shall be no later than 14 days after the signing of the Contract Agreement, subject to the issuance of the construction permit. 1 July 2022 is the first day the Engineer was at Site. On the same day, the Engineer issued a Notice to the Contractor that the Commencement Date shall be 15 July 2022. However, the construction permit was issued only on 1 August 2022. The Project was completed on 1 December 2022. After completion, the Employer submitted a claim for Delay Damages. Following consultations, the Parties could not reach agreement on the Commencement Date. What is the correct Commencement Date?

Options :

A : 12 June 2022

B : 15 June 2022

C : 15 July 2022

D : 1 August 2022

Answer: D

Question 4

The Employer has prepared a contract for a waste-to-energy project based on the FIDIC Yellow Book (edition 1999). You are preparing negotiations on behalf of one of the Subcontractors with the Contractor. The main Contractor will manage the design and build of the Works, whereby the Subcontractor will deliver critical systems regarding power generation and cooling. The Contractor intends to contract the main Contract backto-back with the Subcontractor. In the proposed back-to-back subcontract, the following amendment is proposed through Particular Conditions: "Sub-Clause 4.4. The following paragraph is added: The Subcontractor is required to scrutinize the Employer's Requirements in a manner identical to the obligations of the Contractor as stated in Sub-Clause 5.1 of the Main Contract. The Subcontractor will indemnify and hold harmless (up to the maximum liability of the Subcontractor) the Contractor with regard to any error, fault or other defect found in the Employer's Requirements, its items of reference or Contractor's design of the Works for the scope part for which Subcontractor is contracted." What is your advice to the Subcontractor (SC) in regard to entering this proposed subcontract?

Options :

A : I would advise the SC to enter the Contract with the request to the Contractor to delete this amendment in the Particular Conditions. If the Contractor does not agree to do so, at least the Subcontractor has tried its best.

B : I would advise the SC not to enter this contract because the Contractor is obliged to act in accordance with good faith. A proposed paragraph like this opposes good faith.

C : I would advise the SC not to enter this contract, because Sub-Clause 4.4 describes the obligations of SC towards Contractor, but this amendment positions the SC in a vulnerable position for claims regarding all errors, faults or other Defects (whether originating from the Employer's Requirements or the design of the Contractor). Essentially, this means the SC becomes liable for the design part, which is within the scope of Contractor even without SC having the opportunity to review it.

D : I would advise the SC to discuss this amendment with the insurance company just to be sure there will be no transfer of risks. This amendment is mainly a consequence of the FIDIC Yellow Book structure, where the Contractor has obligations in terms of scrutinizing the Employer's Requirements. This amendment makes this obligation more explicit. If the insurance company has no problems with insuring the parts which will be delivered by SC to Contractor, the SC can accept this risk and enter into the subcontract.

Answer: C

Question 5

Under the FIDIC Yellow Book (both editions), the Contract is administered by the Employer (unless it appoints an Employer's Representative) who endeavours to reach agreement with the Contractor on each claim. Is this statement true or false?

Options :

A : True

B : False

Answer: A

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