Challenges in Adapting Tunnel Construction Contracts to Actual Ground Conditions

"Underground construction poses certain challenges for all parties involved because the actual ground conditions are often unpredictable. Highly complex projects like tunnel construction are affected by various uncertainties. To address this complexity, the construction contract has to be flexible enough to be adapted to the actual conditions (e.g. divergent ground conditions, work delays). However, the adaptation of a tunnel construction contract does not guarantee the absence of a margin of interpretation. The perfect construction contract is an illusion because ex ante statements of the actual ground conditions are not feasible. This paper will discuss contractual parameters that must be considered in order to enable an effective adaptation of the contract during excavation. It is therefore necessary to discuss the following topics: decision-making competence, variable remuneration, fair-risk allocation, value engineering and partnering between client and contractor. INTRODUCTION Thinking of tunnel construction processes, engineers’ first (or at least second) association is about ground conditions. When constructing under the surface, the project is directly related to the ground conditions; however, ground conditions are known fairly well in advance. The estimated conditions can be the same or can also differ from the existing ones. A clear view of the conditions is possible only by driving through the section. What Hoek calls “Geological unpredictability which is guaranteed to provide some surprises in even the simplest tunnelling job” is, in addition to contractual issues, one of two critical aspects of modern tunneling (Hoek 1982). Almost no research tries to figure out, what flexibility in this context means and how to approach it in the contracts. Papers dealing with the New Austrian Tunnel Method (NATM) pose some principles to meet the requests for flexibility (cf. Austrian Society for Geomechanics 2011). However, it remains unclear how to create contracts in order to make them “flexible” enough to react to divergent ground conditions."