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1. Before applying the procurement process of any FIDIC Book, the Employer should always check if there are local procurement rules that also apply. Which one of these responses is correct?
A) Yes, but this is only applicable for public entities like governments. If the Employer is a private organisation (like a company), they are free to procure how they want.
B) Yes, based on the law system, internal governance or type of Employer additional procurement rules can apply.
C) No, because the FIDIC procurement process is universal.
D) No, because Employers never have specific procurement rules.
2. (Under the FIDIC Red and Yellow Books (edition 1999), which two of the following answers are correct regarding the application for Interim Payment Certificates? Choose all correct answers.)
A) The Contractor shall submit a Statement in five copies to the Employer.
B) The statement submitted by the Contractor shall include, if applicable, any amounts to be added and deducted for Plant and Materials.
C) The statement submitted by the Contractor shall include, if applicable, any amounts to be added for Provisional Sums.
D) Each statement must be accompanied (or preceded) by supporting documents, including the progress report specified in Sub-Clause 4.21, for the relevant period.
3. 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 wrong.
B) You are wrong, Y is correct.
C) Both you and Y are both correct.
D) You are correct, Y is wrong.
4. Which FIDIC Book (edition 2017) should be considered first by an Employer that is an experienced employer who knows exactly what they want from a design & engineering perspective?
A) Yellow or Silver Book
B) Red Book
C) Silver Book
D) Yellow Book
5. Which of the following form a Contractor ' s entitlement, in case the Contractor does not receive an interim payment within the allocated contractual deadline for payment? (2 correct answers apply) Choose all of the correct answers (multiple possibilities).
A) Beyond receiving the financing charges, the Contractor has no further entitlements in such a case.
B) The Contractor is entitled to suspend the works or reduce the rate of progress of the work, after giving a due Notice (21 days) about this intention.
C) Right after the expiry of the payment deadline, the Contractor may terminate the contract.
D) If the payment is not made within the time period required, after the expiry of such period, from the next day onwards, the Contractor is entitled to suspend all his/her activities on Site.
E) In case the Employer paid the Contractor late, the Contractor becomes entitled to receive financing charges applying the % included in the Contract Data (if this is not stated, then applying the percentage as included under the corresponding Sub-Clause).
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C,D | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: B,E |
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