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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q52-Q57):

NEW QUESTION # 52
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?

A. False
B. True

Answer: A

Explanation:
Comprehensive and Detailed 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 # 53
Which one of the following documents constitutes a contract and is considered binding on both parties, when the Employer wants to award the Contract to the tenderer?

A. Letter of Intent & Memorandum of understanding
B. Letter of Acceptance
C. Letter of Intent
D. Memorandum of understanding

Answer: B

NEW QUESTION # 54
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. Under the General Conditions, the advance payment will be repaid by deducting all amounts from invoices until the entire advance payment is repaid.
C. The advance payment reflects the amount of works the Contractor has already performed up to the moment such advance payment is performed.
D. Under the General Conditions, the amount of advance payment is to be paid in full by the Employer through one instalment.

Answer: A,B

Explanation:
Comprehensive and Detailed 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 # 55
What are two differences between a notice and other communications under the FIDIC Red Book (edition
2017)? (2 correct answers apply)
Choose all of the correct answers (multiple possibilities).

A. The Parties and Engineer shall be given original or copy of any Notice, Notice of Dissatisfaction (NOD) and Certificates, which is not always the case for other communications.
B. Both 'Notice' and 'Other Communications' are defined terms under the Conditions of Contract.
C. Contractually there is no difference between a notice and other communications.
D. Notice is a defined term, while other communications are not defined as a term in the General Conditions.

Answer: A,D

Explanation:
Option A is correct: "Notice" is a defined term under FIDIC 2017 Red Book; "Other Communications" is a separate category, also defined but distinct.
Option D is correct: Notices, Notices of Dissatisfaction, and Certificates require delivery to all Parties and the Engineer, whereas other communications may not have such strict requirements.
Option B is incorrect as there are contractual differences.
Option C is partially correct but "Other Communications" and "Notice" are distinct terms, so A is more precise.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 1.1 - Definitions
FIDIC Contract Manager Study Guide, Module on Contract Communication

NEW QUESTION # 56
There are four reasons that the Employer/Contractor shall advise in advance each other and the Engineer of any known or future events or circumstances.
Which two of the following statements areNOTapplicable reasons?
(Choose all correct answers - multiple possibilities)

A. Decrease the Contract Price.
B. Adversely affect the work of the Contractor's Personnel.
C. Increase the performance of the Works when completed.
D. Delay the execution of the Works or a Section.

Answer: A,C

Explanation:
Comprehensive and Detailed Explanation:
Under the FIDIC Red Book 2017 (similar principles apply in other editions), Sub-Clause 4.1 ("Contractor's General Obligations") and Sub-Clause 3.4 ("Delay Damages") require both Employer and Contractor to notify the Engineer in advance about any events or circumstances which maydelay the worksoradversely affect the Contractor's personnel or progress. This early notification ensures proper management and mitigation of risks that could impact the project timeline or quality.
* Option A (Delay the execution of the Works or a Section)is a core reason for notification since delays affect the critical path and programme, requiring possible extensions or adjustments.
* Option C (Adversely affect the work of the Contractor's Personnel)is also a valid reason because issues affecting workforce productivity or availability can impact project delivery.
On the other hand:
* Option B (Decrease the Contract Price)isnota reason to notify. Changes in contract price usually arise from variations or claims but are not a "known or future event" requiring prior notification unless linked to a variation or compensation event.
* Option D (Increase the performance of the Works when completed)is positive and does not negatively affect project progress or cost; therefore, it is not a reason for advance notification under these contract provisions.
Thus, the twonot applicablereasons are B and D.
References:
FIDIC Conditions of Contract for Construction, 2017 Edition, Sub-Clause 4.1 - Contractor's General Obligations FIDIC Conditions of Contract for Construction, 2017 Edition, Sub-Clause 3.4 - Delay Damages FIDIC Contract Manager Study Guide, Module on Communication and Reporting

NEW QUESTION # 57
......

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Zachary Brown Zachary Brown

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