Decision Analysis of Alternative Contracting Strategies for Tunnel Projects - Contracting Strategy Can Make or Break a Project Where the Success Is Measured With Key Performance Indicators

"Key project participants, including owners, engineers, and contractors continually seek for sound and structured decision analysis on how to select the best contracting method for successful project delivery. In addition to being burdened with technical challenges, lack of resources, budget shortcomings, regulatory requirements, and bureaucratic and politically mandated obstacles, the project participants need a reliable decision analysis model on the best project delivery method. The pendulum of choice for contracting continually swings back and forth between traditional design-bid-build and alternative delivery options such as design-build, progressive design-build, construction manager at risk, and public-private-partnership. For large tunnel projects, the decision process is further complicated due to contract packaging options as well as risks in underground construction. Contracting strategies for large tunnels require thorough consideration of performance, risk, quality, operability, cost and schedule. This paper compiles an array of decision making criteria and tools for an unbiased and balanced evaluation and ranking system in the procurement of large tunneling projects. INTRODUCTION Successful project delivery hinges upon meeting the owners’ expectations and key performance indicators. Large tunneling programs benefit from a thorough understanding and successful implementation of project delivery options by key project participants including the owners, engineers and contractors. The key to success is a collaborative advancement of project as the key project participants knowledgably address the applicable management, performance, risk, quality, cost, operability and schedule considerations throughout a project realization cycle. PROJECT REALIZATION CYCLE All projects have customary planning, design, construction, commissioning and operation phases that may seem to be sequential but in reality that are well integrated and dependent on one another. A glitch in any phase of a project realization cycle could hinder a successful outcome and none of the project partners are immune to consequences whenever and wherever they may surface."