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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q15-Q20):

NEW QUESTION # 15
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. You are correct, Y is wrong.
B. You are wrong, Y is correct.
C. Both you and Y are wrong.
D. Both you and Y are both correct.

Answer: D

Explanation:
Both statements are correct:
Y is right that payment of Delay Damages does not relieve the Contractor from completing the Works.
You are also correct that excessive deduction of Delay Damages can reduce the Contractor's cash flow, potentially worsening delays.
This situation requires careful balance between enforcing contractual rights and maintaining project progress.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 8.7 - Delay Damages
FIDIC Contract Manager Study Guide, Module on Claims and Cash Flow Management

NEW QUESTION # 16
Under the FIDIC Red Book (edition 2017), the Engineer has suspended works to come to a change of the design of a part of the Works. After expiry of 84 days of suspension, the Contractor gave notice thereof.
Following this notice, the suspension was not lifted within 28 days. What two statements are correct in such a situation?

A. The Contractor may terminate the Contract if it affects the whole Works, but only after it has given a second notice to the Engineer.
B. The Contractor may omit the affected part of Works and deny to carry out such Work going forward, but only after it has given a second notice to the Engineer.
C. Under the Contract the Parties cannot agree on further suspension and the Contractor may immediately terminate the Contract if it affects the whole Works.
D. The Contractor cannot terminate the Contract.

Answer: A,C

Explanation:
Under FIDIC Red Book 2017, if the Engineer suspends works for more than 84 days and the Contractor notifies the Engineer, but the suspension is not lifted within 28 days, the Contractor may terminate the contract if the suspension affects the whole of the Works (Option A).
Additionally, the Contractor must give a second notice before termination (Option C). This process ensures proper communication and adherence to contractual procedures.
Option B is incorrect; termination is allowed under specified conditions.
Option D is incorrect; omission of work is not generally permitted without formal termination.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 8.9 - Suspension by Engineer
FIDIC Contract Manager Study Guide, Module on Suspension and Termination

NEW QUESTION # 17
What does discharge confirm under the FIDIC Red Book (edition 1999)?

A. It confirms full and final settlement of all money due to the Contractor.
B. It confirms the immediate end to the Contract unconditionally whenever issued.
C. None of the above three statements is correct.
D. It confirms interim settlement of all money due to the Contractor

Answer: A

Explanation:
Discharge under FIDIC Red Book 1999 confirms full and final settlement of all money due to the Contractor.
It signifies the Contractor's acceptance of the Final Payment Certificate and releases the Employer from further financial obligations related to the contract.
Options A and C misrepresent the nature of discharge.
Discharge is not a unilateral immediate termination but a financial closure.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 14.13 - Discharge
FIDIC Contract Manager Study Guide, Module on Final Account and Discharge

NEW QUESTION # 18
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?

A. True
B. False

Answer: A

Explanation:
Comprehensive and Detailed Explanation:
This statement is true. The Employer administers the contract unless an Employer's Representative or Engineer is appointed to act on its behalf. The Employer (or its Representative) is responsible for reviewing and negotiating claims in good faith with the Contractor to reach agreement, in line with FIDIC procedures.
References:
FIDIC Yellow Book 1999 & 2017 Editions, Clause 3 - Employer's Administration Role FIDIC Contract Manager Study Guide, Module on Contract Administration

NEW QUESTION # 19
Which of the following obligations are relevant to the Engineer's roles with regards to insurance? [2017 Edition] (2 correct answers apply) Choose all of the correct answers (multiple possibilities).

A. The Engineer should continuously monitor that the Contractor's insurance policies are kept valid, and extensions are duly arranged, when necessary.
B. The Engineer is entitled to take out an insurance on behalf of the Contractor, in case the Contractor fails to extend the validity of a specific insurance.
C. The Engineer shall receive a copy of the evidence(s) demonstrating Contractor's payment of the necessary insurance premiums.
D. The Engineer shall immediately suspend all construction activities at the Site, in case the Contractor failed to take out any necessary insurance.

Answer: A,C

Explanation:
Comprehensive and Detailed Explanation:
Option A is correct: The Engineer is entitled to receive evidence that the Contractor has paid for the necessary insurance policies.
Option C is correct: The Engineer has the role of monitoring the validity of these insurances and ensuring that renewals or extensions are arranged in a timely manner.
Option B is incorrect; the Engineer does not have the authority to take out insurance on behalf of the Contractor.
Option D is incorrect; suspension of construction activities is not automatically the Engineer's role for insurance lapses but may require instructions from the Employer.
References:
FIDIC Red, Yellow, Silver Books 2017 Edition, Sub-Clause 18 - Insurances FIDIC Contract Manager Study Guide, Module on Contract Administration and Insurance

NEW QUESTION # 20
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