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1. Under the FIDIC Red Book (edition 1999), as part of the Contractor submission of Statement, any amount to be deducted for retention, will be calculated by applying the percentage of retention stated in the Appendix to Tender to the total of: (two correct answers apply) Choose all of the correct answers (multiple possibilities).
A) The estimated contract value of the Works executed.
B) Any amounts to be added and deducted for changes in legislation and changes in cost.
C) Any amounts to be added and deducted for Plant and Materials in accordance with Sub-Clause 14.5.
D) Any amounts to be added and/or deducted for the advance payment and repayments under Sub-Clause
14.2.
2. You are the Contract Manager for the Engineer in a hospital project using FIDIC Yellow Book (edition 2017).
The Employer demands perfection in the project ' s design and construction quality. There are many Variations initiated by the Employer during design and construction. Which one of the following is considered to be a valid Variation?
A) The Employer verbally instructs a change in the type of doors. The Engineer issued a Notice describing the required change and denying any costs for the Contractor.
B) The Engineer instructs a change in slopes of the access road to the intensive care unit to meet the Employer ' s Requirement. The Engineer does so with a Notice in accordance with Sub-Clause 3.5.
C) The Engineer requests a proposal regarding a change in type of windows and doors. The Contractor submitted the proposal accordingly to the Engineer. The Engineer instructs the Variation.
D) The Contractor submits a Value Engineering proposal regarding the lighting system for the operation rooms. The Engineer is positive about the proposal and tells the Contractor they need to look into it.
3. Which one of the following is NOT considered a change made in the 2017 edition of the FIDIC Red, Yellow, and Silver Books?
A) New procedures requiring the Contractor to prepare and implement a Compliance Verification System to show that the design, materials, workmanship and certain other matters all comply.
B) New procedures requiring the Contractor to prepare and implement a Quality Management System to show compliance with the Contract requirements.
C) A fair and balanced approach where risk is allocated to the Party that is best able to bear and control that risk.
D) The concentration on dispute avoidance, including an enhanced role for the Dispute Avoidance and Adjudication Board (DAAB) in this respect, and promoting cooperation between the parties during the project.
4. Towards the end of implementing a varied work (initiated originally by the Contractor as a " Value Engineering Proposal " , relevant designs provided by the Contractor) it turned out, that there is some part of it not complying with the otherwise prevailing standards. Which statements are correct in this situation?
[FIDIC Red Book, 2017 Edition]
Choose all of the correct answers (multiple possibilities).
A) The Contractor shall immediately rectify, ensuring, that the varied work fully complies with the prevailing standards.
B) Since the design was approved by the Engineer, the Contractor might not be found responsible for such discrepancy, hence, to be fully compensated.
C) In case it is necessary, the Contractor shall prepare designs for works subject to the Value Engineering, hence, it is up to the Contractor to ensure that the works are fit for the purposes, including that the designs are correct, regardless of any approval or " no-objection " of the Engineer.
D) In this situation, the whole of the varied works should be removed, and the original technical content reinstated.
5. (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) The current index or price.
B) 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.
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 is agreed by the Parties.
D) Each index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works.
Solutions:
| Question # 1 Answer: A,C | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: A,C | Question # 5 Answer: B |
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