Under the FIDIC Silver Book 1999, Clause 9 governs Tests on Completion, while Clause 12.4 addresses Tests after Completion. These provisions define performance verification before and after Taking-Over.
Option A is correct. Under Sub-Clause 9.4 [Failure to Pass Tests on Completion], if the Works fail the Tests on Completion, the Employer has several options, including accepting the Works subject to a reduction in the Contract Price. This reflects the commercial flexibility within FIDIC, allowing completion despite minor deficiencies, with financial adjustment.
Option D is also correct. Under Sub-Clause 12.4 [Failure to Pass Tests after Completion], if the Works fail post-completion performance tests, the Contractor may be required to pay performance damages. Once these damages are paid, the Works may be deemed to have satisfied the required performance levels. This mechanism ensures that operational deficiencies are compensated financially rather than requiring physical rectification in all cases.
Option B is incorrect because both Tests on Completion and Tests after Completion can coexist within the same contract; they serve different purposes (pre-taking-over vs post-taking-over performance verification).
Option C is incorrect because Tests after Completion are generally carried out by or under the responsibility of the Contractor, not solely the Employer, although the Employer may witness them.
These provisions demonstrate FIDIC’s structured approach to quality assurance and risk allocation across different project stages.
