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1. You are the Contract Manager of the Engineer and person Y is the Contract Manager of the Employer in a construction project under FIDIC 2017 Red Book. The project is late in schedule and Y has issued Employer ' s claim on Delay Damages. You have asked Y to consider whether the Contractor ' s delay to completion is a reflection of cash-flow shortfall from interim payments before making deductions to the Contractor ' s payment. Y replied that even if the Contractor pays Delay Damages to the Employer, the Contractor is still obliged to complete the Works and is not relieved from its duties and obligations. You warned Y of the risks of further reduction of cash-flow by the deduction of Delay Damages from payments. As this could worsen the situation of the Contractor, leading to further delays to the completion of the Works. Who is right?
A) Both you and Y are both correct.
B) You are correct, Y is wrong.
C) Both you and Y are wrong.
D) You are wrong, Y is correct.
2. 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)
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.
3. 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) Any amounts to be added and deducted for changes in legislation and changes in cost.
B) The estimated contract value of the Works executed.
C) Any amounts to be added and/or deducted for the advance payment and repayments under Sub-Clause
14.2.
D) Any amounts to be added and deducted for Plant and Materials in accordance with Sub-Clause 14.5.
4. Under the FIDIC Red, Yellow, and Silver Books (both editions), the Employer has an obligation to give a detailed notice to the Contractor about intended changes that are material to its financial arrangements.
A) True
B) False
5. The amount of an advance payment guarantee provided for pursuant to FIDIC Red and Yellow Books (both editions) may be reduced as of:
A) The Commencement Date
B) The date on which the entire advance payment is repaid as stated in the Payment Certificate
C) The date on which an amount is repaid by the Contractor as stated in the Payment Certificates
D) The date of the Taking Over Certificate
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A,B | Question # 3 Answer: B,D | Question # 4 Answer: A | Question # 5 Answer: C |
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