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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q65-Q70):

NEW QUESTION # 65
Giving "Notice" .... [2017 edition] (2 correct answers apply)
Choose all of the correct answers (multiple possibilities).

A. ... is intended for written communications, in full compliance with the formal requirements outlined in the dedicated Sub-Clause.
B. ... is always compulsory together with a clear indication of the relevant Sub-Clause under which the Notice is being served.
C. ... is a special obligation for the Engineer only, in order to enable him/her to manage the implementation of the contract.
D. ... is not a compulsory obligation, but "highly recommended".

Answer: A,B

Explanation:
Option B is correct: Notices are compulsory when required and must reference the relevant Sub-Clause to be valid.
Option D is correct: Notices are formal written communications and must comply with the contract's prescribed procedures.
Option A is incorrect; notices are often mandatory, not merely recommended.
Option C is incorrect; notices are obligations for all Contract Participants, not just the Engineer.
References:
FIDIC Red, Yellow, Silver Books 2017 Edition, Sub-Clause 1.3 - Communications FIDIC Contract Manager Study Guide, Module on Notices and Communication

NEW QUESTION # 66
Which one of the following statements is NOT correct in respect of FIDIC Red Book (both editions)?

A. The Letter of Tender may be worded by the Contractor (at its discretion) so as to allow for the alternative of the Contract to become effective when the Employer issues a Letter of Acceptance.
B. The General Conditions allocate the risks between the parties on a fair and equitable basis.
C. The Contract typically becomes legally effective when the Employer issues the Letter of Acceptance to the Contractor.
D. The Contract is administered by the Engineer who is appointed by the Employer. If disputes arise, they are referred to a Dispute Adjudication Board (DAB) for its decisions.

Answer: A

Explanation:
Comprehensive and Detailed Explanation:
Option A is NOT correct because the wording of the Letter of Tender is usually governed by the tender documents and contract terms; it is not solely at the Contractor's discretion to dictate when the Contract becomes effective. The standard process is that the Contract becomes effective upon the Employer's issuance of the Letter of Acceptance.
Options B, C, and D correctly describe standard FIDIC practices.
References:
FIDIC Red Book 1999 & 2017 Editions - Contract Formation and Tendering
FIDIC Contract Manager Study Guide, Module on Contract Formation

NEW QUESTION # 67
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)

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

Answer: A,B

Explanation:
Under the FIDIC Red Book and Yellow Book, 1999 editions, the Engineer issues Interim Payment Certificates certifying the amounts due to the Contractor for completed works and materials on site (Sub- Clause 14.6). The Employer is generally bound by the Payment Certificate and must pay accordingly, except where there is a lawful set-off or compensation claim against the Contractor.
Option A is correct because the Employer must pay the amount certified except for compensation claims that may be offset against the payment (Sub-Clause 14.6).
Option D is also correct: If the Employer intends to claim against the Contractor (e.g., for damages or defects), it must notify the Contractor under Sub-Clause 2.5 and provide particulars. The Engineer then assesses and decides on the claim and incorporates any agreed deductions into the Payment Certificate.
Option B is incorrect because the Employer is indeed bound by the Payment Certificate unless lawful deductions or disputes arise.
Option C is incorrect as the Employer can withhold amounts due for compensation claims once these are properly notified and substantiated.
References:
FIDIC Red and Yellow Books, 1999 Edition, Sub-Clause 14.6 - Interim Payments FIDIC Red and Yellow Books, 1999 Edition, Sub-Clause 2.5 - Employer's Claims FIDIC Contract Manager Study Guide, Module on Payment Procedures and Financial Management

NEW QUESTION # 68
Which one of the following is NOT considered a change made in the 2017 edition of the FIDIC Red, Yellow, and Silver Books?

A. A fair and balanced approach where risk is allocated to the Party that is best able to bear and control that risk.
B. 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.
C. New procedures requiring the Contractor to prepare and implement a Quality Management System to show compliance with the Contract requirements.
D. 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.

Answer: B

Explanation:
Comprehensive and Detailed Explanation:
Option D is not a new procedure introduced in the 2017 FIDIC editions.
The 2017 editions focus on dispute avoidance (A), quality management systems (B), and fair risk allocation (C), but do not explicitly require a Compliance Verification System as described.
References:
FIDIC Red, Yellow, Silver Books 2017 Editions - Overview of Changes
FIDIC Contract Manager Study Guide, Module on Contract Updates

NEW QUESTION # 69
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. 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.
B. Beyond receiving the financing charges, the Contractor has no further entitlements in such a case.
C. 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).
D. 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.
E. Right after the expiry of the payment deadline, the Contractor may terminate the contract.

Answer: C,D

Explanation:
Option C is correct: The Contractor is entitled to financing charges (interest) on late payments, calculated as per the percentage specified in the Contract Data or corresponding Sub-Clause.
Option D is correct: The Contractor can suspend works or reduce progress after giving due notice, usually 21 days, if payments are not made on time.
Option A is incorrect; termination is not automatic right after the payment deadline expires.
Option B is incorrect; suspension requires prior notice rather than immediate action.
Option E is incorrect because the Contractor has additional remedies such as suspension, beyond just financing charges.
References:
FIDIC Red, Yellow, Silver Books 1999 & 2017 Editions, Sub-Clause 14.8 - Payment of Retention Money and Financing Charges FIDIC Contract Manager Study Guide, Module on Payment Procedures and Remedies

NEW QUESTION # 70
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