Owner Procured Tunnel Boring Machines––A Discussion

The Owner Procurement Process or OPP is a proven, viable alternative contract delivery method that is potentially applicable to many tunnel projects. Using the OPP, the owner specifies and procures major tunnel construction items such as tunnel boring machines and tunnel linings and provides them to a tunnel excavation contractor in order to manage risk and accelerate project schedule. However, due to industry perceptions regarding potential owner risk, it is seldom considered or is rejected out of hand. In fact, past performance demonstrates that the process significantly minimizes owner, contractor and over-all project risk and mitigates the impact of any claims and differing site conditions. The paper outlines how the process should be structured to achieve schedule, cost, quality and risk management benefits. Potential and perceived disadvantages are discussed and how the process can be structured to mitigate or avoid them. The planned implementation of this process on the tunnels for the Silicon Valley Rapid Transit Project in San Jose, California is discussed.