This session explores the basic fundamentals of risk management for underground construction, beginning with some background, history and risk-management strategies. It covers UCA’s Guidelines for Improved Risk Management, and provides real-world case studies including projects for the Southern Nevada Water Authority and the City of Atlanta.
Session Chairs: John Reilly | John Reilly Associates; Don Del Nero | Stantec; Bob Goodfellow | Aldea Services
The presentation covers a short history of risk, risk management development, risk-related problems in construction and risk management initiatives in the last 25 years. It covers ITA/ITIG/UCA codes/guidelines/better practices including risk identification, characterization and management. Specific tools, techniques and models (CEVP, RIAAT) will be discussed, as well as specific case histories (Lake Mead tunnel, New Lima Airport and others). Finally, industry advances and awareness issues will be explored.
The City of Atlanta is currently constructing a $300M (US) water supply system upgrade including conversion of an over 100-year old rock Quarry into a 2.4 billion-gal raw water storage facility and 5 miles of 12 ft. diameter tunnel bore with eleven shafts of various types. The project is being delivered using the Construction Management at-Risk (CM@R) model, which is an innovative contracting method that is relatively new to the tunnel industry. The presentation will highlight risk management concepts implemented during design and special provisions incorporated in the tender documents to address the unique nature of risks associated with CM@R delivery.
Moderator: Mark Ramsey, Implementation Manager | HNTB
Panelists: Bryan Pennington, Executive Officer | Los Angeles County Metropolitan Transportation; Dennis Ratcliffe, Deputy Director | Santa Clara Valley Transportation Authority; Joe Gildner, Executive Project Director | Sound Transit, Erika P. Moonin, Engineering Project Manager | Southern Nevada Water Authority;
Session 2 of the Risk Management in Underground Construction Workshop will concentrate on the overwhelming contribution of the subsurface investigation and the geotechnical sections of the contract document to the successful control of risk for a tunneling project. Success for a tunneling project is largely dependent on how well all parties to the contract understand the ground through which the tunnel will be constructed. Based on that understanding, the project Owner must prepare a contract package that informs the Contractor what he must do in order to be successful; including the preparation of submittals for his proposed means and methods. It is also crucial for the Owner to observe and monitor ground behavior during construction to make certain that the work is proceeding as planned and that negative impacts to adjacent third parties are avoided.
Session Chair: Gary Brierley, Dr. Mole
This presentation will present the elements of the Geotechnical Data Report (GDR). The GDR is arguably the most important geotechnical document for risk mitigation as it present factual information based on site specific explorations. Good geotechnical explorations form the basis for all subsequent decisions. Mr. Raines will present information of various forms of exploration and testing techniques to aid in understanding how the information is generated and its meaning. This will be summarized in a discussion of the presentation of the data in GDR so that it maintains minimum bias and interpretation such that it can be used by all parties involved in the design and construction. Contract requirements will close the discussion to keep the hierarchy of its use and relationship to other geotechnical documents.
Moderator: Gary Brierley, President | Dr. Mole Inc.
Panelists: Sean Harvey, Associate | Brierley Associates; David Hatem, Partner | Donovan Hatem, LLP; Allen Marr, GEO | Geocomp
The contract ultimately is the foundation of risk management, therefore, a full understanding of the contract and its implications is key to success in the tunneling market. This session features some of the foremost experts in the legal field to help you avoid pitfalls in your next project.
Session Chairs: Tom Rosenburg | Roetzel & Andress; Kathy Barnes | Watt Tieder Hoffar Fitzgerald
Achieving effective and balanced risk allocation in design-build (“DB”) subsurface projects has proven to be a challenging process and objective, and a controversial subject. Some have pointed to overly-aggressive owner procurement practices and contractual terms as reasons for that experience. Others have pointed to overly-aggressive design-builder pricing and inadequate contingency. The analysis and explanation, however, are more profound and complicated. The superficially simple DB characteristic of single-point responsibility does not automatically and necessarily produce or converge into risk allocation simplicity.
To date, there has been significantly less examination of other, more intricate technical and contractual factors that account for the challenges and complexities in achieving effective and balanced risk allocation in DB subsurface projects.
Mr. Fleishman will review changes in the law affecting insurance in the underground construction industry. He will discuss the trends in the law and potential future developments that could affect the industry. In this interactive program, attendees are encouraged to discuss insurance dispute scenarios relevant to their businesses.
Moderator: Tom Rosenberg | Roetzel & Andress
Panelists: Adrian Pellen, Senior Vice President – North American Infrastructure Leader | Marsh; Kathy Barnes, Senior Partner | Watt Teider; Russell Lear, Vice President | Flood and Peterson (NASBP)
Case histories are a good way to learn from the success – or failure – of others. This session focuses on risk management from an international perspective with examples from India, Latin America, Turkey and the United States. We wrap things up with a panel featuring contractors who make their living in the tunnel arena.
Session Chairs: Steve Kramer, COWI; Moussa Wone | DC Water
The risks of underground construction are similar worldwide but working overseas in developing countries brings additional risks and changes in emphasis on others. The presentation will give a flavor of risk management while working in India.
In Latin America, the EPC contract form is widely used for infrastructure projects such as hydroelectric power projects or industrial plant sites. Although this contract form intends to give a clear indication on the allocation of ground risk, alterations and omissions of contract clauses are common and can cause ambiguous shifts in the allocation of ground risk. Crucial for the development of a project in the EPC environment is the tender phase when the data on ground conditions have to be analyzed and interpreted by the bidders. In addition, the bidders can decide upon complementary ground investigation, which may be necessary in order to prepare the required engineering and design for contract execution. During this stage of bid preparation, access to the site, climatic conditions and environmental permits are often critical factors which may limit further ground investigation. These factors are often overlooked. High altitudes, such as the Andean Cordillera, deserts and rain forests can pose challenges for ground investigation to be performed in a short period of time of bid preparation. This is even more challenging, if a bidder intends to prepare a geological-geotechnical model for an alternative design.
The Istanbul Strait Road Tube Crossing was one of the most challenging underwater tunnel projects in the world. The 43 ft diameter, doubled decked tunnel is subjected to 11 bars of hydrostatic pressure, variable geology, and is located in a very active seismic area. Execution of the project required innovative solutions, sophisticated construction techniques, and a prudent risk management approach. The project was delivered in a Build-Operate-Transfer (BOT) contract in a public-private partnership. The technical challenges, coupled with financial and commercial risks required the implementation of sophisticated risk management tactics including the provision of Independent Design Verification.
Moderator: Steve Kramer | COWI
Panelists: Dawn Dobson-Markman | Barnard Construction Company, Inc., James Grayson, Quality Group Manager | Kenny Construction