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

1. Under the FIDIC Yellow Book (both editions), the Contract is administered by the Employer (unless it appoints an Employer ' s Representative) who endeavours to reach agreement with the Contractor on each claim. Is this statement true or false?

A) False
B) True

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

4. (Which of the following two statements are correct regarding subcontractors under FIDIC Red, Yellow, and Silver Books (edition 2017)?
Choose all of the correct answers (multiple possibilities).)

A) The Contractor shall not be responsible for the acts or defaults of any Subcontractor.
B) The Contract Data may identify parts of the Works which the Contractor is not entitled to subcontract.
C) If no maximum allowable accumulated value of work subcontracted is stated in the Contract Data, the Contractor shall not be entitled to subcontract the whole of the Works without prior consent of the Engineer.
D) The Contractor shall obtain the Engineer's and the Employer's prior consent to all Subcontractors.

5. 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).

A) Informing the Contractor of their inability of issuing the determination, in lack of the Employer ' s necessary approval.
B) The Engineer should refer the matter in subject to the DAB.
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) Remain silent and not do anything in the subject.

Solutions: