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1. 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?
A) Letter of Intent
B) Letter of Acceptance
C) Letter of Intent & Memorandum of understanding
D) Memorandum of understanding
2. (Which two of the following statements are correct regarding the first step of an Employer ' s Claim, considering that the Employer is entitled to a reduction in the Contract Price and/or an extension of the Defects Notification Period under any Clause of the Conditions of Contracts or otherwise in connection with the Contract, under the FIDIC Red, Yellow, and Silver Books (edition 2017)?
Choose all of the correct answers (multiple possibilities).)
A) The Notice given by the Employer must also include the legal or contractual basis of the claim, including the clause of the Contract under which it is made.
B) A Notice from the Employer is not required in order to give a Notice to the Engineer for services requested by the Contractor.
C) The Employer shall give a Notice to the Engineer, describing the event or circumstance giving rise to the cost, loss, delay or extension of the Defects Notification Period for which the Claim is made.
D) The Notice shall be given to the Engineer, as soon as practicable, and no later than 28 days after the claiming Party became aware, or should have become aware, of the event or circumstance.
3. You are the new Contract Manager of the Contractor in a bridge project using FIDIC Yellow Book (edition
2017). The project had been suspended due to a material change in the Employer ' s financial arrangement.
You have worked with your team to identify several failures of the Employer in carrying its obligations under the Contract. Which one of the following does NOT allow the Contractor to issue Notice to terminate the Contract?
A) A prolonged suspension for more than 1 year has affected the whole of the Works.
B) The Contractor does not receive the amount due under the latest Payment Certificate for more than 4 months after the due date.
C) The Employer failed to comply with a final and binding determination issued by the Engineer, and such failure constitutes a material breach of the Employer ' s obligations under the Contract.
D) The Contractor has requested the Employer but has not received any evidence that the financial arrangement is being maintained, despite having sent a notice thereto 4 months earlier.
4. 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) 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).
B) 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.
C) Right after the expiry of the payment deadline, the Contractor may terminate the contract.
D) Beyond receiving the financing charges, the Contractor has no further entitlements in such a case.
E) 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.
5. Under both FIDIC Yellow Book (YB) and Silver Book (SB) (edition 1999), if the Engineer (YB) / Employer (SB) instructs the Contractor based on Sub-Clause 8.6 to provide a revised programme, the acceptance by the Engineer (YB) / Employer (SB) of a revised programme with a completion within Time of Completion entitles the Contractor to a payment of the needed extra costs. Is this statement true or false?
A) True
B) False
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C,D | Question # 3 Answer: D | Question # 4 Answer: A,B | Question # 5 Answer: B |
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