FIDIC Updated CCM Exam Questions and Answers by kyan

Under FIDIC 2017 (Clause 4.4 [Subcontractors]), the Contractor is generally permitted to subcontract parts of the Works, but subject to specific controls and limitations.

Option B is correct. FIDIC expressly provides that the Contractor shall not subcontract the whole of the Works without prior consent of the Engineer. This ensures that the Contractor remains the primary responsible party and does not transfer the entire contractual obligation to others without oversight.

Option D is also correct. The Contract Data may specify certain portions of the Works that cannot be subcontracted, preserving critical elements under the direct responsibility of the Contractor.

Option A is incorrect because only the Engineer’s consent is generally required for subcontracting (not both Engineer and Employer), except in specific cases defined in the Contract.

Option C is incorrect because the Contractor remains fully responsible for the acts, defaults, and neglect of all Subcontractors, as if they were the Contractor’s own actions. This is a fundamental FIDIC principle ensuring a single point of responsibility.

These provisions maintain control, accountability, and quality assurance in project execution while allowing flexibility in subcontracting arrangements.

All main FIDIC contract editions contain provisions that allow the Employer or Engineer to propose or instruct the Contractor to employ certain subcontractors (e.g., nominated subcontractors). The Contractor retains the right to refuse such subcontractors only for reasonable cause, which must be communicated formally.

This mechanism protects the Employer’s interests in subcontractor selection while safeguarding the Contractor’s right to reject subcontractors that may not be competent or suitable.

Therefore, the statement is true.

Under the FIDIC Conditions of Contract (particularly 2017 editions), the Dispute Adjudication Board (DAB) is a standing or ad hoc body that provides binding decisions on disputes. One key requirement is that the DAB must give its decisions in writing upon request by either Party, ensuring clarity and enforceability.

Option E is correct as the DAB’s decision must be documented formally.

Option A is incorrect; the cost of the DAB is generally shared by Employer and Contractor as per the contract.

Option B is incorrect because retainer fees can be paid on different schedules, not necessarily monthly on the first day.

Option C is incorrect; payments to DAB members do not require Employer’s certification but are agreed as part of the DAB contract.

Option D is partially true but not a standalone correct statement without additional context.