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1. If defects are identified during the Tests on Completion, which one of the following options is not available to the Parties under the Contract?
A) The Party which is not liable for the cost of rectifying defects can expect the other Party to pay the cost of performing the repeated tests.
B) If the defects do not affect the use of the Works for their intended purpose, the Engineer can issue the Taking-Over Certificate.
C) The Employer can request to take over the Works.
D) By giving reasons, the Engineer can refuse to accept the Works until repeated tests have been successfully performed.
2. (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? (1 correct answer applies))
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) Each index or price applicable on the date 49 days before the expiry of the Time for Completion of the Works.
C) The current index or price.
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 agreed by Parties.
3. During the execution of certain Works under a FIDIC Yellow Book (edition 1999), a Contract in a historical area along the silk route, one of the workers on the excavator shouts out to the supervisor of the Contractor it has discovered something on the Site. The supervisor inspects the finding and concludes this is possibly an ancient treasure in a wooden box. The supervisor sees some golden coins through the cracked lid of the box.
The supervisor immediately stops the execution of the Works, sends the workers away and blocks access to the Site for all persons. Given the sensitive nature of the findings, the supervisor informs you as Engineer.
How do you react?
A) You compliment the supervisor for their swift and decisive action. However, the Works should advance as soon as possible. You ask the supervisor to excavate the box further, and place it in the back of your truck. You promise the supervisor you will drive the box yourself to the University in the city nearby, because it is very important to preserve found treasures like this. The Contractor is not entitled to an extension of time, as no delay has been incurred.
B) You thank the supervisor for their action. You make sure the Site is secured and ask the Contractor to make an improvised barrier around the Site. You ask the Contractor to appoint its most trustworthy guards to set a perimeter. You inform the Employer and local authorities and you ask the Contractor to send you a notice in writing whereby it requests for a Variation (as this is needed for you to instruct the Contractor), thereby already including a fixed proposal for the costs of the guards and barrier, all in accordance with Sub-Clause 4.24.
C) You immediately take action and give the instruction to the supervisor to make sure to cover this finding and till the excavation with material. You then redesign and make a determination (Sub-Clause
3.5) on a change of the Works - if needed - to make sure the execution can restart within days because of the need to finish this project.
D) You inform the supervisor that given the sensitive nature of the findings, you need a formal and written notice as mentioned in Sub-Clause 4.24 second paragraph, otherwise you cannot give further instructions. You ask them to send it to you as soon as possible, because otherwise you are not able to entitle the Contractor to any extension of time and payment of costs.
4. You are the Contract Manager of the Employer ' s Representative in a Thermal Power Plant Project. The Contract for this project is EPC Turnkey Contract using the FIDIC Silver Book (edition 2017) with a Contract Price of 28 million USD. The Employer ' s Requirements require that: " the Contractor design in accordance with international and national technical regulations, and standards, [etc.] " .
For piling works, the Employer ' s Requirements state that the Contractor will design according to a specific national standard for piling works NTS-PW-01. After all piles for the jetty have been installed, a pile load test on lateral bearing capacity shows that actual lateral bearing capacity is much lower than the calculated lateral bearing capacity. It was later revealed by the Technical Standard Committee that there was a typo mistake during preparation of the NTS-PW-01 (translated from a foreign standard). The lateral bearing capacity of installed piles had been substantially overestimated as a result of this typo. Contractor submits a claim for
200,000 USD regarding extra costs for installing additional piles as a result of errors in the Employer ' s Requirements.
In the hydrological information of Site Data provided by the Employer, the annual high water level is 4.0m.
However, during the design stage, with updated data from local stations along the rivers, the Contractor found out there was a mistake in the calculation. The annual high water level should be 4.5m. As a result, the Contractor has to design and build additional flood walls along the river to protect the Plant from flooding.
The Contractor claims an amount of 300,000 USD to construct the flood wall, based on Unforeseeable difficulties.
As the Employer ' s Representative, after you have consulted with both Parties but failed to reach agreement, you will make a fair determination of the Claims of the Contractor.
In your " Notice of the Employer ' s Representative ' s determination " , what is your determination for the Contractor?
A) The Contractor is entitled to the Claim for the additional flood wall based on Unforeseeable difficulties only.
B) The Contractor is not entitled to either of the Claims.
C) The Contractor is entitled to both Claims.
D) The Contractor is entitled to the Claim for additional costs in relation to the piling, based on errors in the Employer ' s Requirement only.
5. The Contractor is entitled to an advance payment. Applying FIDIC Red Book (edition 1999), which two of the following statements are correct?
Choose all of the correct answers (multiple possibilities):
A) The advance payment reflects the amount of works the Contractor has already performed up to the moment such advance payment is performed.
B) The advance payment is to help the Contractor to finance some of its early cost and expenditure until it becomes entitled to first (non-interim) payment.
C) Under the General Conditions, the amount of advance payment is to be paid in full by the Employer through one instalment.
D) Under the General Conditions, the advance payment will be repaid by deducting all amounts from invoices until the entire advance payment is repaid.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: B,D |
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