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

1. Under the FIDIC Red Book (edition 1999), if the Contractor as per Sub-Clause 14.2 has to ensure the Employer receives an Advance Payment Guarantee as per the standard model, what type of instrument should this be?

A) A declaration of joint and several liability
B) A surety bond
C) A bank guarantee
D) A parent company guarantee

2. 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?

A) I would advise the SC to enter the Contract with the request to the Contractor to delete this amendment in the Particular Conditions. If the Contractor does not agree to do so, at least the Subcontractor has tried its best.
B) I would advise the SC not to enter this contract because the Contractor is obliged to act in accordance with good faith. A proposed paragraph like this opposes good faith.
C) I would advise the SC not to enter this contract, because Sub-Clause 4.4 describes the obligations of SC towards Contractor, but this amendment positions the SC in a vulnerable position for claims regarding all errors, faults or other Defects (whether originating from the Employer ' s Requirements or the design of the Contractor). Essentially, this means the SC becomes liable for the design part, which is within the scope of Contractor even without SC having the opportunity to review it.
D) I would advise the SC to discuss this amendment with the insurance company just to be sure there will be no transfer of risks. This amendment is mainly a consequence of the FIDIC Yellow Book structure, where the Contractor has obligations in terms of scrutinizing the Employer ' s Requirements. This amendment makes this obligation more explicit. If the insurance company has no problems with insuring the parts which will be delivered by SC to Contractor, the SC can accept this risk and enter into the subcontract.

3. Under the FIDIC Red Book (edition 1999): the Contractor submitted Final Statement in accordance with the Contract and the Contractor wants to correct it. Can the Contractor correct the Final Statement?

A) No
B) Yes

4. 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) No, because Employers never have specific procurement rules.
C) Yes, based on the law system, internal governance or type of Employer additional procurement rules can apply.
D) No, because the FIDIC procurement process is universal.

5. You are the Contract Manager in a highway project using FIDIC Red Book (edition 1999). You work for the Employer - a highway management agency. During the tender period, you are informed of a specific Commencement Date required by the directors of the agency. Which two of the following approaches to inform the tenderers of this date are clearly and unambiguously drafted?
Choose all of the correct answers (multiple possibilities).

A) Specify Commencement Date in the Particular Conditions.
B) Specify Commencement Date in the Minutes of Meeting of Contract Negotiation.
C) Specify Commencement Date in the Contract Agreement.
D) Inform the Commencement Date to the tenderers by email, and attach that email in the list of Contract Documents.

Solutions: