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Medical Professional Certified Case Manager Certification Exam (CCM) Sample Questions (Q10-Q15):

NEW QUESTION # 10
What are two differences between a notice and other communications under the FIDIC Red Book (edition
2017)? (2 correct answers apply)
Choose all of the correct answers (multiple possibilities).

A. Both 'Notice' and 'Other Communications' are defined terms under the Conditions of Contract.
B. Contractually there is no difference between a notice and other communications.
C. The Parties and Engineer shall be given original or copy of any Notice, Notice of Dissatisfaction (NOD) and Certificates, which is not always the case for other communications.
D. Notice is a defined term, while other communications are not defined as a term in the General Conditions.

Answer: C,D

Explanation:
Option A is correct: "Notice" is a defined term under FIDIC 2017 Red Book; "Other Communications" is a separate category, also defined but distinct.
Option D is correct: Notices, Notices of Dissatisfaction, and Certificates require delivery to all Parties and the Engineer, whereas other communications may not have such strict requirements.
Option B is incorrect as there are contractual differences.
Option C is partially correct but "Other Communications" and "Notice" are distinct terms, so A is more precise.
References:
FIDIC Red Book 2017 Edition, Sub-Clause 1.1 - Definitions
FIDIC Contract Manager Study Guide, Module on Contract Communication

NEW QUESTION # 11
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 bank guarantee
B. A parent company guarantee
C. A declaration of joint and several liability
D. A surety bond

Answer: A

Explanation:
According to FIDIC Red Book 1999, Sub-Clause 14.2, the Advance Payment Guarantee must be a bank guarantee issued by a reputable bank acceptable to the Employer. This bank guarantee serves as security to ensure that the advance payment made by the Employer will be repaid if the Contractor fails to fulfill contractual obligations. The bank guarantee is a commonly used, reliable instrument providing direct financial assurance to the Employer.
Other instruments like surety bonds or parent company guarantees may be acceptable only if explicitly agreed, but the standard requirement is a bank guarantee.
Declaration of joint and several liability is not a typical form of guarantee for advance payments.
References:
FIDIC Red Book 1999 Edition, Sub-Clause 14.2 - Advance Payment Guarantee FIDIC Contract Manager Study Guide, Module on Payment Procedures and Guarantees

NEW QUESTION # 12
In which one of the following circumstances is it recommended to select the Contractor after a two-stage procurement procedure (pre-qualification + tender procedure)?

A. When the works are simple and of short duration.
B. When there is a limited number of capable experienced contractors available and ready to take part in the procurement.
C. In case of large scale works, where there are several companies likely to have an interest in submitting an offer.
D. If there is international financing for the project, it is always necessary to conduct a two-stage procurement procedure.

Answer: C

Explanation:
Two-stage procurement, involving pre-qualification followed by tender, is typically recommended for large- scale projects where many potential contractors might be interested. This process helps to shortlist qualified contractors, thus streamlining the tender evaluation and increasing the quality and competitiveness of submitted offers.
Option C correctly reflects this approach for complex or large projects where competition needs to be managed.
Option A is incorrect since simple, short-duration projects usually do not require complex procurement.
Option B is incorrect because if only a few capable contractors exist, pre-qualification may be less necessary.
Option D is incorrect as international financing does not always mandate two-stage procurement, although it often influences procurement methods.
References:
FIDIC Contract Manager Study Guide, Module on Contract Formation and Procurement Strategies World Bank Procurement Guidelines and Common Industry Practice

NEW QUESTION # 13
For the FIDIC Red Book (both editions), the Contractor is required to submit a progress report monthly.
When does the Contractor's reporting requirement end?

A. After issuance of the Performance Certificate.
B. After issuance of the Taking-Over Certificate.
C. At the Date of Completion of the Works (irrespective of whether there is minor outstanding work to be performed).
D. Until all outstanding works as stated in the Taking-Over Certificate are completed.

Answer: D

Explanation:
The Contractor's obligation to submit progress reports continues until all outstanding work identified in the Taking-Over Certificate has been completed. The Taking-Over Certificate signals substantial completion but may allow for outstanding minor works. Reporting is essential to monitor progress on these outstanding works.
The Performance Certificate relates to final contract completion but reporting usually ends earlier only after all works are completed.
Therefore, Option D is correct.
References:
FIDIC Red Book 1999 & 2017 Editions, Sub-Clause 4.21 - Progress Reports FIDIC Contract Manager Study Guide, Module on Communication and Reporting

NEW QUESTION # 14
Which of the following cases will allow the Employer to claim under the Performance Security? [2017 Edition] (2 correct answers apply) Choose all of the correct answers (multiple possibilities).

A. The Contractor failed to extend the validity of the Performance Security.
B. The Contractor failed to renew the Tender Security.
C. The Employer had submitted a claim under Sub-Clause 20.2.
D. The Engineer had issued instruction to replace part of the Works.
E. The Contractor abandons the Works and the Employer did not issue Notice of termination.

Answer: A,B

Explanation:
Under FIDIC 2017 editions, the Performance Security protects the Employer against failure by the Contractor to fulfill contractual obligations. The Employer may claim under the Performance Security in the following cases:
Option A: Failure to renew the Tender Security as required during the tendering or contract formation phase can allow Employer to make a claim, since the security guarantees the Contractor's commitments at this stage.
Option E: Failure to extend the validity of the Performance Security when requested or required breaches contractual obligations and enables the Employer to claim under the security.
Option B is incorrect because abandonment without termination notice does not immediately entitle the Employer to claim under Performance Security; formal termination is usually required first.
Option C is incorrect because submitting a claim under Sub-Clause 20.2 (Employer's claims) does not directly correlate with claiming under Performance Security.
Option D is irrelevant; instructions to replace works do not relate to Performance Security claims.
References:
FIDIC Red, Yellow, and Silver Books 2017 Edition, Sub-Clause 4.2 - Performance Security FIDIC Contract Manager Study Guide, Module on Risk Management and Securities

NEW QUESTION # 15
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