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Which two of the following statements are correct regarding Dispute under the FIDIC Red, Yellow, and Silver Books (edition 2017)?
Choose all of the correct answers (multiple possibilities)
A. If a Party is dissatisfied with the determination and has given Notice of Dissatisfaction (NOD) to the other party within a strict 28-day time limit, a Dispute arises and either Party may proceed under Sub- Clause 21.4 to obtain a DAAB decision on it.
B. In case the Engineer refuses to issue a Performance Certificate or to issue one with a correct date under Sub-Clause 11.9, and the Contractor has disagreed with the requested entitlement or relief in connection with this refusal, Dispute shall be deemed to have arisen.
C. Both 'Disagreement' and 'Dispute' are defined terms under the Conditions of Contract.
D. The Dispute must be submitted to the Dispute Avoidance and Adjudication Board (DAAB) within 42 days, otherwise the NOD is deemed to have lapsed and is no longer valid.
Answer: A,B
Explanation:
Option A is correct. Under Sub-Clause 11.9 (Performance Certificate) refusal or incorrect issuance by the Engineer, combined with disagreement by the Contractor, may cause a Dispute to arise.
Option B is correct. If a Party is dissatisfied with a determination, it must give a Notice of Dissatisfaction (NOD) within 28 days to escalate the matter to a Dispute, allowing either Party to refer it to the DAAB as per Sub-Clause 21.4.
Option C is incorrect. The contract does not specify a 42-day time limit for submission to DAAB after NOD; timelines vary by contract and stage.
Option D is incorrect. 'Disagreement' is not a formally defined term in FIDIC contracts, whereas 'Dispute' is.
References:
FIDIC Red, Yellow, Silver Books 2017 Edition, Sub-Clause 11.9 and Clause 21 - Claims, Disputes, and Adjudication FIDIC Contract Manager Study Guide, Module on Dispute Resolution
NEW QUESTION # 50
Through which two of the following documents may the Employer give information to the Contractor of a planned timetable of meetings such as management meetings, site meetings, technical meetings, and progress meetings?
Choose all of the correct answers (multiple possibilities).
A. Employer's Requirements
B. General Conditions of Contract
C. Special Conditions
D. Specification
Answer: A,C
Explanation:
The timetable for meetings is usually set out in the Special Conditions (Particular Conditions) and/or the Employer's Requirements, which define project-specific administrative and management arrangements.
Special Conditions customize the General Conditions to the project and often specify meeting schedules.
Employer's Requirements detail the Employer's expectations, including communication protocols and meeting timetables.
The General Conditions (Option A) are standard and do not include project-specific meeting schedules.
The Specification (Option B) mainly covers technical requirements, not administrative matters like meetings.
References:
FIDIC Red and Yellow Books 1999 and 2017 Editions, Special Conditions and Employer's Requirements Sections FIDIC Contract Manager Study Guide, Module on Communication and Reporting
NEW QUESTION # 51
Under the FIDIC Red Book, which one of the following statements is correct for a claim by the Contractor?
A. If the Engineer does not make a determination, the Employer and the Contractor are unable to agree to settle an issue that gave rise to a claim.
B. The Engineer's response to the Contractor's submission of detailed particulars that are required by the procedure for claims by the Contractor must include the Engineer's final decision on the quantum.
C. The Employer has the authority to accept a claim by the Contractor, even in the case of the Contractor's failure to comply with the notice requirements.
D. It is the Employer's Representative who must first respond to the claim by the Contractor.
E. The Engineer's response to a claim by the Contractor is final and binding upon the Employer.
Answer: A
Explanation:
Under FIDIC Red Book 1999, the Engineer plays a key role in determining claims submitted by the Contractor (Clause 20). If the Engineer fails to make a determination within the prescribed time, the Parties may be unable to resolve the dispute and thus the matter may proceed to dispute resolution mechanisms.
Option B is correct because if the Engineer does not decide, the claim remains unsettled, and the Parties are left to resolve the dispute, often via Dispute Adjudication Board or arbitration.
Option A is incorrect; claims must comply with notice requirements to be valid.
Option C is incorrect because the Engineer may request further particulars but is not obligated to give a final decision on quantum immediately.
Option D is incorrect as the Engineer, not the Employer's Representative, first responds to claims.
Option E is incorrect since the Engineer's decision is not final and binding if disputed; it may be challenged.
References:
FIDIC Red Book 1999 Edition, Clause 20 - Claims, Disputes and Arbitration FIDIC Contract Manager Study Guide, Module on Claims and Dispute Resolution
NEW QUESTION # 52
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. 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.
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. The current index or price.
D. Each index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works.
Answer: D
Explanation:
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
NEW QUESTION # 53
The FIDIC Books are evolutions of earlier contract models, and although the different versions of a specific model are not the same, familiarity in definitions and structure makes it easier to work with different FIDIC books as well as with their different editions.
Is this statement true or false?
A. False
B. True
Answer: B
Explanation:
This statement is true. The FIDIC suite of contracts, including Red, Yellow, and Silver Books, have evolved from earlier editions and contract models, but they retain a common structure, terminology, and approach to risk allocation. This familiarity allows professionals who know one FIDIC contract to adapt more easily to other FIDIC contracts or updated editions. For example, common terms like Engineer, Employer, Contractor, Variation, and Claims exist across editions with consistent meaning.
The modular and familiar structure supports easier contract administration, negotiation, and interpretation.
However, differences in clauses, obligations, and procedures between editions (e.g., 1999 vs. 2017) require careful review. Nevertheless, the shared foundations mean prior experience provides valuable understanding, streamlining learning and application.
References:
FIDIC Contracts Guide, General Introduction and History
FIDIC Contract Manager Study Guide, Module on Introduction to FIDIC Contracts
NEW QUESTION # 54
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