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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q97-Q102):

NEW QUESTION # 97
Under the FIDIC Red, Yellow, and Silver Books (both editions), the Contractor has a contractual obligation to submit a Value Engineering Proposal. Such proposal shall be prepared at the cost of the Employer. Are both these statements true or false?

Answer: B

Explanation:
The Contractor may submit Value Engineering proposals to improve efficiency or reduce costs; however, it is not an absolute contractual obligation to submit such proposals. Also, the preparation of these proposals is generally at the Contractor's own cost initially. If the proposal is accepted and results in a Variation, then adjustments to the Contract Price may occur, potentially reimbursing the Contractor.
Thus, both statements are false.
References:
FIDIC Red, Yellow, Silver Books 1999 & 2017 Editions, Sub-Clause 13.1 - Value Engineering FIDIC Contract Manager Study Guide, Module on Variations and Value Engineering


NEW QUESTION # 98
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 back- to-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?

Answer: C

Explanation:
In FIDIC Yellow Book (1999), the Contractor is responsible for scrutinizing the Employer ' s Requirements per Sub-Clause 5.1 and must notify any discrepancies or errors. However, passing this obligation to a Subcontractor, and requiring the Subcontractor to indemnify the Contractor for errors or defects arising from the Employer ' s Requirements or the Contractor ' s design, unfairly shifts risk and liability to the Subcontractor. The Subcontractor is likely not in a position to fully review or control the Employer's Requirements or the overall Contractor's design. This exposes the Subcontractor to excessive risk, beyond their scope and capacity.
Advice C highlights that the Subcontractor becomes vulnerable to claims for design defects outside their control. This misallocation of risk is generally not recommended and can be challenged during contract negotiation. Good contract management practice and risk allocation principles (FIDIC Contract Manager Study Guide, Module on Claims and Dispute Resolution) support this position.
While Options A, B, and D propose different approaches, only C correctly identifies the fundamental contractual and risk management issue that should prevent the Subcontractor from entering the contract as is.
References:
FIDIC Yellow Book 1999, Sub-Clause 5.1 - Contractor's General Obligations FIDIC Contract Manager Study Guide, Module on Claims and Dispute Resolution FIDIC Contract Manager Study Guide, Module on Risk Management


NEW QUESTION # 99
(For specific probable future events or circumstances which may adversely affect the Works, FIDIC Red and Yellow Books (edition 1999) provide a duty to notify specific parties. Which two statements are correct?
Choose all of the correct answers (multiple possibilities).)

Answer: B,D

Explanation:
Under FIDIC Red and Yellow Books 1999, Sub-Clause 8.3 [Programme] includes an important obligation related to early warning. It requires both Parties to proactively notify each other and the Engineer of any probable future events or circumstances that may adversely affect the Works, including delays, increased cost, or performance issues.
Option B is correct because the clause clearly establishes a mutual obligation: both Parties must inform each other and the Engineer, and the Engineer must also inform the Parties. This ensures transparency and enables proactive mitigation of risks.
Option D is also correct. The Contractor has a specific obligation to notify the Engineer of such events. This aligns with the Contractor's responsibility for planning and executing the Works and maintaining an updated programme.
Option A is incorrect because the obligation arises before the Time for Completion is actually affected-it is about anticipated or probable events, not confirmed impacts.
Option C is incorrect because the Engineer does have a role in communication and must advise the Parties accordingly.
This early warning mechanism is a key feature of FIDIC contracts, promoting risk management, cooperation, and prevention of disputes rather than reactive claims handling.


NEW QUESTION # 100
Under the FIDIC Construction Contract, which one of the following statements is correct?

Answer: B

Explanation:
Under the FIDIC Conditions of Contract (particularly 2017 editions), the Dispute Adjudication Board (DAB) is a standing or ad hoc body that provides binding decisions on disputes. One key requirement is that the DAB must give its decisions in writing upon request by either Party, ensuring clarity and enforceability.
Option E is correct as the DAB's decision must be documented formally.
Option A is incorrect; the cost of the DAB is generally shared by Employer and Contractor as per the contract.
Option B is incorrect because retainer fees can be paid on different schedules, not necessarily monthly on the first day.
Option C is incorrect; payments to DAB members do not require Employer's certification but are agreed as part of the DAB contract.
Option D is partially true but not a standalone correct statement without additional context.
References:
FIDIC Red, Yellow, Silver Books 2017 Edition, Clause 21 - Disputes and DAB Procedures FIDIC Contract Manager Study Guide, Module on Claims and Dispute Resolution


NEW QUESTION # 101
In the FIDIC Silver Book (both editions), the Notice of the Commencement Date will be informed by whom?
(1 correct response applies)

Answer: A

Explanation:
Comprehensive and Detailed Explanation:
In the FIDIC Silver Book (1999 and 2017 editions), which is tailored for EPC/Turnkey contracts, the Employer is responsible for notifying the Contractor of the Commencement Date (Sub-Clause 8.1). Unlike other FIDIC contracts where the Engineer might notify commencement, the Silver Book places more responsibility on the Employer due to the nature of the contract where the Contractor is largely responsible for design and execution with fewer Engineer roles.
The Employer's formal notification of the Commencement Date signals the official start of the Contractor's obligations and triggers timelines under the contract.
The Engineer or Resident Engineer typically does not issue such notice in the Silver Book framework.
References:
FIDIC Silver Book 1999 and 2017 Editions, Sub-Clause 8.1 - Commencement of Works FIDIC Contract Manager Study Guide, Module on Contract Formation and Execution


NEW QUESTION # 102
......

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