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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?
A. The current index or price.
B. 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.
C. Each index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works.
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 is more favourable to the Employer.
正解：C
解説：
Comprehensive and Detailed Explanation:
Under FIDIC Red Book 1999, price adjustments after the Time for Completion are based on the indices or prices applicable on the date 49 days before the expiry of the Time for Completion, not the current index. This prevents the Contractor from benefiting from price fluctuations after the contract period.
This clause ensures fairness by locking the price basis as of a fixed reference date, protecting the Employer from increased costs due to delays.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 13.8 - Adjustments for Changes in Cost FIDIC Contract Manager Study Guide, Module on Price Adjustment
質問 # 43
In the FIDIC Silver Book (both editions), the Notice of the Commencement Date will be informed by whom?
(1 correct response applies)
A. The Employer
B. The Engineer's Resident Engineer
C. The Employer's Representative
D. The Engineer
正解：A
解説：
Comprehensive and Detailed Explanation:
In the FIDIC Silver Book (1999 and 2017 editions), which is tailored for EPC/Turnkey contracts, the Employer is responsible for notifying the Contractor of the Commencement Date (Sub-Clause 8.1). Unlike other FIDIC contracts where the Engineer might notify commencement, the Silver Book places more responsibility on the Employer due to the nature of the contract where the Contractor is largely responsible for design and execution with fewer Engineer roles.
The Employer's formal notification of the Commencement Date signals the official start of the Contractor's obligations and triggers timelines under the contract.
The Engineer or Resident Engineer typically does not issue such notice in the Silver Book framework.
References:
FIDIC Silver Book 1999 and 2017 Editions, Sub-Clause 8.1 - Commencement of Works FIDIC Contract Manager Study Guide, Module on Contract Formation and Execution
質問 # 44
Under the FIDIC Red and Yellow Books (edition 1999): if the Engineer gives an instruction which requires the Employer's prior approval, the Contractor is required to verify whether the Engineer has obtained the Employer's prior approval or not. Is this statement true or false?
A. False
B. True
正解：A
解説：
Under the FIDIC Red and Yellow Books 1999 editions, the Engineer acts as the Employer's representative with authority delegated under the contract. When an instruction requires the Employer's prior approval, it is primarily the Engineer's responsibility to obtain that approval before issuing the instruction to the Contractor.
The Contractor isnot contractually required to verifywhether the Engineer has obtained the Employer's approval. The Contractor is generally entitled to rely on the Engineer's instructions as valid and binding unless there is clear evidence to the contrary.
This principle avoids placing an undue administrative burden on the Contractor and maintains the hierarchical contract administration structure, where the Engineer is the primary point of contact and decision-maker.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 3.1 - Engineer's Duties and Authority FIDIC Yellow Book 1999 Edition, similar provisions FIDIC Contract Manager Study Guide, Module on Contract Administration Procedures
質問 # 45
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 wrong, Y is correct.
B. Both you and Y are both correct.
C. You are correct, Y is wrong.
D. Both you and Y are wrong.
正解：B
解説：
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
質問 # 46
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).
A. If the advance payment is not completely repaid before the Taking-Over Certificate is issued.
B. If advance payment is not completely repaid before the Performance Certificate is issued.
C. If the advance payment is not completely repaid before Time for Completion.
D. If the advance payment is not completely repaid before termination of the Contract.
正解：C、D
解説：
Under the FIDIC Red Book 1999, advance payment is a sum paid to the Contractor to help cash flow early in the project. It must be repaid through deductions from interim payments according to a specified schedule.
* Sub-Clause 14.5 (Advance Payment)states that the Contractor must repay the advance payment by installments, typically by the Time for Completion. If the advance payment has not been fully repaid by the Time for Completion, the outstanding balance becomes immediately due and payable by the Contractor (Option A). This ensures the Employer recovers the advance by the time the project completes.
* Additionally,upon termination of the Contract(Sub-Clause 15.2 or relevant termination clauses), any outstanding balance of the advance payment becomes immediately due (Option D). This protects the Employer's financial interest if the Contract ends prematurely.
* Option B (before the Performance Certificate is issued) and Option C (before the Taking-Over Certificate is issued) arenotexplicitly linked in FIDIC Red Book 1999 to triggering immediate repayment of the advance payment. The Taking-Over Certificate marks practical completion and may precede the final repayment schedule, while the Performance Certificate is issued after the Defects Notification Period.
Therefore, the correct situations for immediate repayment of outstanding advance payment balance arebefore Time for Completion and upon termination of the Contract.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 14.5 - Advance Payment
FIDIC Red Book 1999 Edition, Sub-Clause 15.2 - Termination by Employer (Payment obligations) FIDIC Contract Manager Study Guide, Module on Payment Procedures and Financial Management
質問 # 47
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