What does discharge confirm under the FIDIC Red Book (edition 1999)?
A.
It confirms interim settlement of all money due to the Contractor
B.
It confirms full and final settlement of all money due to the Contractor.
C.
It confirms the immediate end to the Contract unconditionally whenever issued.
D.
None of the above three statements is correct.
The Answer Is:
B
This question includes an explanation.
Explanation:
Discharge under FIDIC Red Book 1999 confirms full and final settlement of all money due to the Contractor. It signifies the Contractor's acceptance of the Final Payment Certificate and releases the Employer from further financial obligations related to the contract.
Options A and C misrepresent the nature of discharge.
Discharge is not a unilateral immediate termination but a financial closure.
[References:, , FIDIC Red Book 1999 Edition, Sub-Clause 14.13 – Discharge, , FIDIC Contract Manager Study Guide, Module on Final Account and Discharge]
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