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Certified Contract Manager Question and Answers

Certified Contract Manager

Last Update Oct 1, 2025
Total Questions : 100

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Questions 1

Which of the following situations form legally binding contracts? (2 correct answers apply)

Choose all of the correct answers (multiple possibilities)

Options:

A.  

The Employer received the Contractor's Letter of Tender and issued a Letter of Intent.

B.  

The Employer and the Contractor signed the Contract Agreement.

C.  

The Employer received the Contractor's Letter of Tender and issued a conditional Letter of Acceptance.

D.  

The Employer received the Contractor's Letter of Tender and issued Letter of Acceptance.

Discussion 0
Questions 2

Which one of the following is NOT considered a change made in the 2017 edition of the FIDIC Red, Yellow, and Silver Books?

Options:

A.  

The concentration on dispute avoidance, including an enhanced role for the Dispute Avoidance and Adjudication Board (DAAB) in this respect, and promoting cooperation between the parties during the project.

B.  

New procedures requiring the Contractor to prepare and implement a Quality Management System to show compliance with the Contract requirements.

C.  

A fair and balanced approach where risk is allocated to the Party that is best able to bear and control that risk.

D.  

New procedures requiring the Contractor to prepare and implement a Compliance Verification System to show that the design, materials, workmanship and certain other matters all comply.

Discussion 0
Questions 3

Which two statements are true under the FIDIC Red Book (edition 1999)?

(Choose all of the correct answers — multiple possibilities)

Options:

A.  

The Performance Certificate is deemed to constitute the acceptance of the Works.

B.  

The Performance Certificate constitutes acceptance of the Works and full performance of all obligations of each Party.

C.  

The Engineer shall issue the Performance Certificate within 28 days at the latest: by the end of the Defects Notification Periods, and once the Contractor has supplied all the Contractor's Documents and completed and tested all Works including remedying any defects in accordance with the Contract.

D.  

The Performance Certificate is deemed to be issued on fulfilment of certain conditions stated in the respective Sub-Clause.

Discussion 0
Questions 4

Under the FIDIC Construction Contract (Red Book), which of the following amendments do NOT comply with the FIDIC Golden Principles? [1999 Edition] (2 correct answers apply)

Choose all of the correct answers (multiple possibilities).

Options:

A.  

The Contractor is responsible for the performance of the Nominated Subcontractors

B.  

Deletion of Sub-Clauses 20.2 - 20.4 for a Project constructed in United Arab Emirates

C.  

The DAB Decision is final and binding

D.  

The Payment shall be released by the Employer within 180 days calculated from receiving the Contractor's Monthly Statement

Discussion 0
Questions 5

What does discharge confirm under the FIDIC Red Book (edition 1999)?

Options:

A.  

It confirms interim settlement of all money due to the Contractor

B.  

It confirms full and final settlement of all money due to the Contractor.

C.  

It confirms the immediate end to the Contract unconditionally whenever issued.

D.  

None of the above three statements is correct.

Discussion 0
Questions 6

Is the Employer obliged under FIDIC Silver Book (edition 1999) to describe which Documents are to be submitted to the Employer? (1 correct response applies)

Options:

A.  

No, according to Sub-Clause 5.7 provisional operation and maintenance manuals are always required.

B.  

No, because the Contractor has a duty to supply the Employer with every Document, given Sub-Clause 7.4.

C.  

Yes, because otherwise the Contractor doesn't have to submit any Document until Completion of the Works as stated in Sub-Clause 1.8.

D.  

Yes, the Employer should define which documents it wants to receive from the Contractor as Contractor's Documents in the Employer's Requirements, as stated in Sub-Clause 5.2.

Discussion 0
Questions 7

Which one of the following claim events does NOT allow profit?

Options:

A.  

Under the Construction Contract, interference by the Employer with Tests on Completion.

B.  

Under the Construction Contract, the Engineer's delay in supplying drawings or issuing instructions.

C.  

Under the Construction Contract, the failure of the Employer to give right of access to the site.

D.  

Under the Construction Contract, the relevant authority had unnecessarily delayed the approval.

E.  

Under the Plant and Design-Build Contract, errors in the Employer's requirements.

Discussion 0
Questions 8

Under the FIDIC Red, Yellow, and Silver Books (edition 2017), if a Dispute is referred to the Dispute Avoidance and Adjudication Board (DAAB) to obtain its decision, the Parties shall suspend performing their obligations in accordance with the Contract, until they receive further directions from the DAAB. Is this statement true or false?

Options:

A.  

True

B.  

False

Discussion 0
Questions 9

You are the Contract Manager for the Engineer in a highway project using FIDIC Red Book (edition 1999). There is a Schedule of cost indexation included in the Contract. The project must be completed by 31 December of this year. If the Contractor fails to complete the Works by then, how will the adjustment of prices take place thereafter?

Options:

A.  

Each index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works.

B.  

The current index or price.

C.  

Either the current index/price, or index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works, whichever is more favourable to the Employer.

D.  

Either the current index/price, or index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works, whichever agreed by Parties.

Discussion 0
Questions 10

Which one of the following statements regarding drafting contracts based on FIDIC Books is correct?

Options:

A.  

Amending clauses, supposedly in the interest of the Employer, immediately nullifies all the advantages of standardization, and almost invariably introduces conflicting or ambiguous requirements on the parties, and often causes mistrust between them.

B.  

The FIDIC Books provide people who draft contracts with great examples on how to draft a good contract model. Furthermore, arrangements from Red, Yellow and Silver Books can be easily mixed to get a good fit for a specific project.

C.  

The Form of Contract is chosen by the Contractor and imposed by him on the Employer, who tenders on that basis.

D.  

People who draft contracts should, when preparing a new contract, always start with the question: where do I want to lay the most risks between Employer and Contractor, and does the Employer has the budget to reward Contractors with a high risk apatite?

Discussion 0
Questions 11

You are the Contract Manager of the Engineer for a contract using FIDIC Yellow Book (edition 2017). You are drafting a notice holding the Commencement Date. Which one of the following approaches has the most clear and unambiguous drafting?

Options:

A.  

I hereby give notice, in accordance with Sub-Clause 8.1 of the Conditions of Contract, the Commencement Date shall be 17 April 2023.

B.  

The Contractor is kindly notified that the project shall be started by 17 April 2023.

C.  

The commencement date of this project under Sub-Clause 8.1 of the Conditions of Contract will be 10 days from 7 April 2023.

D.  

I hereby give notice, in accordance with Sub-Clause 1.1.84 and 8.2 of the Conditions of Contract, that the Time for Completion shall commence from 17 April 2023.

Discussion 0
Questions 12

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?

Options:

A.  

Letter of Acceptance

B.  

Letter of Intent

C.  

Memorandum of understanding

D.  

Letter of Intent & Memorandum of understanding

Discussion 0
Questions 13

Which one of the following statements is correct regarding the Provisional Sum under the FIDIC Red, Yellow, and Silver Books (edition 1999)?

Options:

A.  

The Provisional Sum cannot be issued by instruction either by the Engineer (or Employer in case of FIDIC Silver Book).

B.  

The Contractor shall, when required by the Engineer, produce proof to substantiate how it has used the Provisional Sum.

C.  

Each Provisional Sum shall not be used, in whole or in part, in accordance with instructions from the Engineer.

Discussion 0
Questions 14

You are the Contract Manager of the Engineer in a hotel project. In May 2020, the Employer and the Contractor signed a Contract based on the FIDIC Yellow Book (edition 2017), as per which the Contractor will design and build a hotel project with Contract Price of 5,100,000 USD. The Time for Completion for this project is 12 months (May 2021). The Contract also named a nominated Subcontractor (as referred to in Sub-Clause 4.5) who provides mechanical, electrical, and plumbing services for the project (including the fire fighting system), which was accepted by the Contractor without any discussions.

The Project was delayed due to issues with the fire fighting system, and you issued the Taking-Over Certificate in June 2022.

The Employer sent a Notice of Claim to the Contractor on Delay Damages with a maximum value equal to 10% of Contract Price (510,000 USD). The Employer also gave a Notice to the Contractor stating that the Contractor has failed to submit the evidence of payment to the nominated Subcontractor as well as the reason for withholding payment to the nominated Subcontractor. Therefore, the Employer has paid the nominated Subcontractor directly the entire amount due, coming to 100,000 USD. The Employer intends to include this amount as a deduction in the Final Payment to the Contractor.

As Contract Manager of the Engineer, you are tasked to make a fair determination of the Notices of the Employer. In your "Notice of the Engineer's determination", what is your determination for the deduction of the next Interim Payment to the Contractor in relation to the amount directly paid to the nominated Subcontractor?

Options:

A.  

The Employer is entitled to deduct the amount directly paid.

B.  

The Employer is not entitled to deduct the amount directly paid.

Discussion 0
Questions 15

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).

Options:

A.  

The Engineer shall receive a copy of the evidence(s) demonstrating Contractor's payment of the necessary insurance premiums.

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 should continuously monitor that the Contractor's insurance policies are kept valid, and extensions are duly arranged, when necessary.

D.  

The Engineer shall immediately suspend all construction activities at the Site, in case the Contractor failed to take out any necessary insurance.

Discussion 0
Questions 16

You are the Contract Manager for the Engineer in a hospital project using FIDIC Yellow Book (edition 2017). The Employer demands perfection in the project's design and construction quality. There are many Variations initiated by the Employer during design and construction. Which one of the following is considered to be a valid Variation?

Options:

A.  

The Contractor submits a Value Engineering proposal regarding the lighting system for the operation rooms. The Engineer is positive about the proposal and tells the Contractor they need to look into it.

B.  

The Engineer instructs a change in slopes of the access road to the intensive care unit to meet the Employer's Requirement. The Engineer does so with a Notice in accordance with Sub-Clause 3.5.

C.  

The Engineer requests a proposal regarding a change in type of windows and doors. The Contractor submitted the proposal accordingly to the Engineer. The Engineer instructs the Variation.

D.  

The Employer verbally instructs a change in the type of doors. The Engineer issued a Notice describing the required change and denying any costs for the Contractor.

Discussion 0
Questions 17

The Contractor is entitled to an advance payment, it has obtained such payment and it has not yet been entirely paid back. Under FIDIC Red Book (edition 1999), in which two situations will the outstanding balance of the advance payment become immediately due?

Choose all of the correct answers (multiple possibilities).

Options:

A.  

If the advance payment is not completely repaid before Time for Completion.

B.  

If advance payment is not completely repaid before the Performance Certificate is issued.

C.  

If the advance payment is not completely repaid before the Taking-Over Certificate is issued.

D.  

If the advance payment is not completely repaid before termination of the Contract.

Discussion 0
Questions 18

Under the FIDIC Red and Yellow Books (edition 1999), which two of the following statements are correct regarding the issuance of Interim Payment by the Engineer?

(Choose all correct answers — multiple possibilities)

Options:

A.  

The Employer is bound by the Certificate issued by the Engineer, and must make payment in full, except for any compensation arising from any claim which the Employer may have against the Contractor.

B.  

The Employer is not bound by the Certificate issued by the Engineer.

C.  

The Employer is bound by the Certificate issued by the Engineer and must make payment in full, irrespective of any entitlement to compensation arising from any claim which the Employer may have against the Contractor.

D.  

If the Employer considers itself entitled to claim against the Contractor, notice and particulars must first be submitted under Sub-Clause 2.5. The Employer's entitlement is then to be agreed or determined by the Engineer, and then, incorporated as a deduction in a Payment Certificate.

Discussion 0
Questions 19

The procurement process of a project executed based on any FIDIC Contract model is exactly the same in terms of definitions, time and steps, which makes it universal and more easy to use worldwide. Is this statement true or false?

Options:

A.  

True

B.  

False

Discussion 0
Questions 20

When is the Employer obliged to return the Performance Security (PS) under the FIDIC Red Book (edition 1999)?

Options:

A.  

Without undue delay after the issuance of the Taking-Over Certificate.

B.  

Without undue delay after the issuance of the Performance Certificate.

C.  

Within 21 days after the issuance of the Taking-Over Certificate.

D.  

Within 21 days after the issuance of the Performance Certificate.

Discussion 0
Questions 21

Which one statement regarding the adjustment of the Contract Price as mentioned in Sub-Clause 13.8 of FIDIC Silver Book (edition 1999) is correct?

Options:

A.  

If the Contract Price is to be adjusted for rises and falls in the cost of labour, the Contractor is entitled to compensation in such a way that all rises and falls in the costs are compensated fully.

B.  

The Particular Conditions can provide a calculation method or refer to a specific set of index for adjustments following Sub-Clause 13.8. This can result in lower adjustments of the Contract Price than the actual changes in the costs of labour and/or Goods.

C.  

If Particular Conditions provide a calculation method or refer to a specific set of index for adjustments following Sub-Clause 13.8, it can only apply to rises or falls in the costs of labour and Goods.

D.  

The Particular Conditions can provide a calculation method or refer to a specific set of index for adjustments following Sub-Clause 13.8. Only the Base Date can be taken as the date from which the adjustment should be calculated from.

Discussion 0
Questions 22

Regarding the FIDIC Red Book (edition 1999): which two statements are true in respect of Building Information Modelling (BIM)?

Choose all of the correct answers (multiple possibilities).

Options:

A.  

General Conditions of Contract require the use of BIM.

B.  

BIM is one of the digital data technologies used in all aspects of project planning, investigation, design, construction and operation.

C.  

BIM is not related to the improvement of quality, accuracy, delivery times and cost savings.

D.  

For construction or building projects involving BIM, many Sub-Clauses of FIDIC Red Book (edition 2017) should be thoroughly reviewed when drafting the Particular Conditions.

Discussion 0
Questions 23

In case a Variation is initiated by the Engineer for prompt implementation ...... [FIDIC Red, and Yellow Books, 2017 Editions]

Choose all of the correct answers (multiple possibilities).

Options:

A.  

... the Contractor may send a Notice to the Engineer, that the subject of the Variation was Unforeseeable (having regard to the scope and nature of the Works), hence, the Contractor is not to start implementing the varied work promptly.

B.  

... the Contractor is required to commence implementing the varied works and take records of all the details ( ... regarding the details of the varied works executed, expenditures incurred, and impact on progress etc.)

C.  

... the Contractor is required to commence implementing the varied works even if it would pose immediate hazard to the safety of public areas surrounding the Site

D.  

... the Contractor within 28 days after receiving such instruction shall submit to the Engineer a description of the varied work, a programme for its execution and a proposal for adjustment of the Contract Price.

E.  

... the Contractor is not bound to start implementing the varied works right up until the price for the varied works is fully agreed (or determined)

Discussion 0
Questions 24

Towards the end of implementing a varied work (initiated originally by the Contractor as a "Value Engineering Proposal", relevant designs provided by the Contractor) it turned out, that there is some part of it not complying with the otherwise prevailing standards. Which statements are correct in this situation? [FIDIC Red Book, 2017 Edition]

Choose all of the correct answers (multiple possibilities).

Options:

A.  

Since the design was approved by the Engineer, the Contractor might not be found responsible for such discrepancy, hence, to be fully compensated.

B.  

In this situation, the whole of the varied works should be removed, and the original technical content reinstated.

C.  

The Contractor shall immediately rectify, ensuring, that the varied work fully complies with the prevailing standards.

D.  

In case it is necessary, the Contractor shall prepare designs for works subject to the Value Engineering, hence, it is up to the Contractor to ensure that the works are fit for the purposes, including that the designs are correct, regardless of any approval or "no-objection" of the Engineer.

Discussion 0
Questions 25

Which of the following statements are not correct? [2017 Edition]

Choose all of the correct answers (multiple possibilities).

Options:

A.  

The Contractor or the Engineer can request a meeting.

B.  

Only the Engineer can call for a meeting

C.  

Subcontractors cannot attend management or progress meetings unless the Engineer's approval is obtained.

D.  

Only the Employer can call for a meeting.

E.  

The Engineer shall keep records of the Progress Meetings.

Discussion 0
Questions 26

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).

Options:

A.  

Notice is a defined term, while other communications are not defined as a term in the General Conditions.

B.  

Contractually there is no difference between a notice and other communications.

C.  

Both 'Notice' and 'Other Communications' are defined terms under the Conditions of Contract.

D.  

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.

Discussion 0
Questions 27

The details of all the matters that have been clarified and agreed between the Employer and tenderers during the tender stage are recorded by, for instance, a memorandum of understanding. The Employer may award the contract to the tenderer through a letter of formal acceptance, signed by the Employer. This process is in compliance with which one of the following Golden Principles (GP's)?

Options:

A.  

GP 3

B.  

GP 1

C.  

GP 2

D.  

GPA

Discussion 0
Questions 28

If a FIDIC Red, Yellow, or Silver Book (edition 2017) is applied, in which of the following two cases is the Contractor required to submit a revised programme?

Choose all of the correct answers (multiple possibilities).

Options:

A.  

The Contractor shall revise the Programme only by request from the Engineer or the Employer (in case of FIDIC Silver Book).

B.  

To accurately reflect the actual progress of the Works, but only if any Programme ceases to reflect actual progress with at least 42 days.

C.  

To accurately reflect the actual progress of the Works, whenever any Programme ceases to reflect actual progress or is otherwise inconsistent with the Contractor's obligations.

D.  

Upon a request from the Engineer (under FIDIC Red or Yellow Books) or Employer (under FIDIC Silver Book) notifying it that the Programme fails to comply with the Contract, to a specified extent, or no longer reflects actual progress or is otherwise inconsistent with the Contractor's obligations.

Discussion 0
Questions 29

If the Engineer is required to obtain the Employer's prior approval to issue determinations (including such requirement in the Particular Conditions) and such approval was not given by the Employer, what possible options are at stake for the Engineer to proceed? [1999 Edition] (2 correct answers apply)

Choose all of the correct answers (multiple possibilities).

Options:

A.  

Remain silent and not do anything in the subject.

B.  

The Engineer should refer the matter in subject to the DA

B.  

C.  

Issuing the determination to the Contractor in the form and with the content agreeable to the Employer, with a remark, that it is the Employer's determination and not the Engineer's determination.

D.  

Informing the Contractor of their inability of issuing the determination, in lack of the Employer's necessary approval.

Discussion 0
Questions 30

The FIDIC Red Book (edition 1999) deals with Value Engineering Clause. It follows from this clause that the Contractor shall give notice to the Engineer with supporting particulars. Upon receiving this notice, the Engineer shall proceed in accordance with Sub-Clause 3.5 to agree or determine this Cost, which shall be included in the Contract Price.

Options:

A.  

True

B.  

False

Discussion 0