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  Risk sharing in tbm tunnel projects in complex geologies

  Many infrastructure projects, especially hydropower-railway and aqueduct projects, foresee the execution of long tunnels crossing complex geological formation under significant cover. These projects are often executed under EPC contract conditions, with all design and construction risks to be borne by the Contractor. Even by implementing a very extended investigation campaign, it is almost impossible in long and deep tunnels to foresee the presence and location of extraordinary geological conditions that, when occur, delay significantly the execution of the works, requiring the implementation of expensive and special treatments/measures. The amount of extra costs and delays that such extreme geologically conditions cause may largely exceed any reasonable allowance that a Contractor can allocate in its competitive bid. A risk mitigation and risk sharing approach is therefore highly recommended for projects including long tunnels in complex geology even if executed under and EPC type of contract.

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