Incentive Approaches To Tunnel Contracts

Methods of fair payment for excavating, supporting, and concrete lining tunnels have been sought by various owners for years. Tunneling techniques have changed with the development of equipment-from the hand-mucking operation to the machine mucker and, most recently, to machine-boring; from tunnel supports using timber sets to steel sets to rock bolts and, most recently, to shotcrete support; and from hand-placing the concrete lining using wooden forms to pumping or pneumatic placing using steel forms. As tunnel construction techniques advanced, so did methods for payment for the work performed. The recent development of tunnel-boring machines, or "moles," is precipitating another change. These changes have led to some difficulty in providing proper payment for the various items of work for different types of tunnels. As a major construction agency engaged in water-resources development in the western states, the U.S. Bureau of Reclamation has long been aware of the need for clarification of payment provisions in tunnel construction. The Bureau has some 150 miles of tunnels completed on its projects and about 50 miles of tunnels under construction. In this construction, the Bureau has benefited by the advance made by contractors in improving the techniques of tunnel excavation. To assure that the Bureau has an up-to-date approach to payment provisions, the Chief Engineer recently established a "standard" method of payment for all types of tunnels. It is believed that this new method of payment will be equitable for all contractors bidding on various types of tunnels using the diversity of methods of excavation now available to them. These payment provisions provide for different quantities for excavated tunnels using the blasting technique or using machine-boring techniques. In this way, the contractors have a choice in excavation methods and an equal opportunity to be low in their bids. We believe this will be an incentive to all contractors to be as progressive as the development of new equipment economically allows.