Score Higher on Verified CCM | Certified Contract Manager Exam Questions with Answers

Under the FIDIC Red Book (both 1999 and 2017 editions), the Employer is responsible for the design of the Works. This design is primarily communicated to the Contractor through key technical documents included in the Contract.

Option B (Specifications) is correct because Specifications define the technical requirements, standards, materials, workmanship, and performance criteria. They are a core component of the design documentation and directly guide how the Works are to be executed.

Option A (Bill of Quantities) is also correct. While primarily used for measurement and payment, the Bill of Quantities is derived from the design and reflects the quantified scope of the Works. It is intrinsically linked to the design and provides a structured breakdown of the elements required to construct the Works.

Option C is incorrect because the Breakdown of Lump-Sum is relevant to lump-sum contracts (e.g., Silver Book), not the Red Book’s remeasurement approach.

Option D is incorrect as the Schedule of Subcontractors relates to execution planning, not design.

Option E is incorrect because the Contract Agreement is a legal document formalizing the contract, not a design document.

Thus, in Red Book contracts, the design basis is fundamentally established through the Specifications and the Bill of Quantities, supported typically by Drawings (though not listed here).

Under the FIDIC Silver Book 1999, Sub-Clause 3.1 [The Employer’s Representative] provides that the Employer may appoint an Employer’s Representative to act on his behalf. This reflects the optional nature of this role in EPC/Turnkey contracts, where the Employer typically has a more limited involvement compared to Red Book arrangements.

Option B is correct because the contract explicitly allows (but does not mandate) such an appointment. The Employer’s Representative can carry out duties and exercise authority as delegated by the Employer.

Option A is incorrect because while neither the Employer’s Representative nor any other party can unilaterally amend the Contract, this statement is misleading and not specific to the role defined in the Silver Book.

Option C is incorrect because the appointment is not mandatory; the Employer may choose not to appoint a Representative.

Option D is incorrect because the Employer does not need the Contractor’s agreement to appoint an Employer’s Representative. The appointment is at the Employer’s discretion, although it must be notified to the Contractor.

This reflects a key feature of the Silver Book: greater Employer control and flexibility, with fewer administrative layers compared to contracts involving an independent Engineer.

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.