FIDIC Updated CCM Exam Questions and Answers by madiha

Under FIDIC Red Book 1999, Sub-Clause 17.3 defines Employer’s Risks, which include war, hostilities, rebellion, revolution, insurrection, or military/usurped power. The scenario clearly falls within “insurrection,” making it an Employer’s Risk. Consequently, under Sub-Clause 17.4, the Contractor is entitled to both Extension of Time (EOT) and Cost if such risks affect execution of the Works.

At this stage, the Engineer must acknowledge that the event qualifies as an Employer’s Risk and that entitlement in principle exists. However, the exact quantum of delay and Cost cannot yet be determined because the situation is ongoing. FIDIC practice allows for such claims to be assessed after the effects are known. Importantly, the Contractor has already provided notice, satisfying Sub-Clause 20.1 requirements.

Option B is incorrect because entitlement is not conditional upon the end of the event; only quantification is deferred. Option C is wrong because foreseeability does not negate Employer’s Risks explicitly listed in Sub-Clause 17.3. Option D misapplies Sub-Clause 2.1, which relates to access to the Site, not political violence or insurrection.

Therefore, Option A correctly reflects FIDIC principles: recognition of entitlement with later assessment of time and cost.

Dayworks refer to works executed on a time basis (e.g., labor and plant) with payment made according to predetermined rates rather than a lump sum or unit rate contract price.

Option A is incorrect. Even if a Daywork Schedule is not initially included, the dayworks Sub-Clause (e.g., Sub-Clause 13.7 in Red and Yellow Books, 13.8 in Silver Book 1999) still applies to dayworks ordered during the contract execution. The schedule facilitates pricing, but the Sub-Clause governs the method and conditions for dayworks.

Option B is correct. The dayworks Sub-Clause is applicable not only to traditional construction works but can also be applied to other types of works, such as variations or additional works that cannot be precisely measured or foreseen and are charged on a time basis.

Option C is incorrect. The dayworks Sub-Clause is used in all FIDIC standard forms (Red, Yellow, and Silver Books), not only for remeasurement in the Red Book. In the Yellow Book (plant and design-build) and Silver Book (EPC/turnkey), dayworks are similarly applicable for certain variations or unforeseen works.

Option D is correct. The Engineer (in Red and Yellow Books) or the Employer (in the Silver Book, where the Engineer’s role is limited) may instruct that a variation be executed on a daywork basis. This instruction is typically used when the scope or quantity cannot be reasonably pre-determined.

The key issue in this question is the allocation of design responsibility and the treatment of unforeseeable physical conditions (particularly relevant for underground works or inaccessible areas).

The Yellow Book 2017 is specifically designed for projects where the Contractor is responsible for both design and execution, while still maintaining a balanced risk allocation. Importantly, Sub-Clause 4.12 [Unforeseeable Physical Conditions] allows the Contractor to claim additional time and/or cost for conditions that could not reasonably have been foreseen. Therefore, for projects involving underground or uninspectable works, the Yellow Book is highly appropriate. Hence, Option A is correct.

The Silver Book 2017 (EPC/Turnkey) also places full responsibility for design and execution on the Contractor. However, it adopts a much stricter risk allocation: the Contractor generally bears the risk of unforeseen physical conditions. This makes it less suitable for projects with significant uncertainty—unless amendments are made. By modifying Sub-Clause 4.12 in the Particular Conditions to reallocate risk (e.g., allowing relief for unforeseeable conditions), the Silver Book can be adapted for such projects. Therefore, Option C is correct.

Option B (Red Book) is incorrect because design responsibility primarily lies with the Employer, not the Contractor.

Option D is incorrect because using the Silver Book without amendment would place excessive and potentially unmanageable risk on the Contractor in cases involving unknown subsurface conditions.

This reflects a core FIDIC principle: selecting the appropriate form depends heavily on risk allocation and the degree of uncertainty in site conditions.

In FIDIC Yellow Book (1999), the Contractor is responsible for scrutinizing the Employer ' s Requirements per Sub-Clause 5.1 and must notify any discrepancies or errors. However, passing this obligation to a Subcontractor, and requiring the Subcontractor to indemnify the Contractor for errors or defects arising from the Employer ' s Requirements or the Contractor ' s design, unfairly shifts risk and liability to the Subcontractor. The Subcontractor is likely not in a position to fully review or control the Employer’s Requirements or the overall Contractor’s design. This exposes the Subcontractor to excessive risk, beyond their scope and capacity.

Advice C highlights that the Subcontractor becomes vulnerable to claims for design defects outside their control. This misallocation of risk is generally not recommended and can be challenged during contract negotiation. Good contract management practice and risk allocation principles (FIDIC Contract Manager Study Guide, Module on Claims and Dispute Resolution) support this position.

While Options A, B, and D propose different approaches, only C correctly identifies the fundamental contractual and risk management issue that should prevent the Subcontractor from entering the contract as is.