Megaproject Contracting and Delivery, Comprehensive Report/Thesis:
John continues to collaborate with colleagues at the University of Munich regarding advanced contracting and delivery methods for complex urban infrastructure programs. This builds on work over the last 25 years and previous papers on this topic.
The concept is to define a structured process to determine and quantify what is most important to owners, designers, contractors and other stakeholders and to use these priorities to define and determine the appropriate contractual structure, considering these factors and optimal outcomes. This research may be elevated to a comprehensive thesis at the University of Munich.
An initial paper will be presented at the International Tunneling Association (ITA) in Montreal and the North American Tunneling Conference in California this year.(see following abstract).
Abstract: Advanced Contracting and Delivery for Complex Infrastructure Programs
The ability of an owner to define risk ownership through contractual methods is fraught with uncertainty related to the risk management methodology used, the response of the contractor to the bid environment and uncertain ground conditions. Risk management processes and contractual methods are a key determinants to outcomes.
Additionally, conflicts in complex underground projects arise from inequitable contractual and risk provisions and frameworks. Contracts should balance owner and contractor needs and use advanced risk management and sharing, while related bonding and insurance availability issues may limit contractors who will bid. Additionally, fixed-price contracts do not address the uncertainty of underground works, often leading to changes, claims, disputes and litigation.
This paper presents a collaborative contracting method which addresses needs of owners and contractors, within a structured risk-based environment. It details a structure tailored to the specific conditions of a project, and presents successful results, as applied to major projects in Europe.
International Tunneling Association (ITA)
ITA Working Group 3 (in association with WG14) is preparing a guideline for the selection and procurement of Tunnel Boring Machines. This work has been informed by John’s papers and presentations over the last 30 years on this topic, so John was asked to edit the initial chapters of the guideline, which is currently under final peer review.
You can download the predecessor articles from 2011, 2021 and 2020 which were published in the on-line publication, “TunnelTalk”, by clicking the following links:[ TBM Procurement and Contractual Processes, 2021 ] [ TBM Procurement, Risk and Technology Advancement, 2020 ].[ Alternative Contracting, 2011 ]. The initial article, given in 1997 at the Vienna ITA Conference is available by contacting John.
The current ITA WG3 initiative will define implementation of a recommended international risk-based cost estimating process for ITA, building on the WSDOT Cost Estimate Validation Process (CEVP) process which John developed with WSDOT in 2002, and will include the experience of other WG members. Also related to WG2 initiatives regarding risk.
ITA Working Group WG20 “Urban Problems/Underground Solutions” (which John initiated in 2002) is finalizing a report regarding the choice between one large tunnel/TBM vs. two smaller tunnels for rail, transit and highway projects. John contributed to the WG20 report which is under final review.