Subsurface Risk Management Tools for Alternative Project Delivery: Fid-Bau Portal

Subsurface Risk Management Tools for Alternative Project Delivery

Gransberg, Douglas D. / Cetin, Bora

Managing the risk of differing subsurface conditions is never simple; however, when a design-build (DB) or public private partnership (P3) contract is awarded before a full subsurface investigation is completed, it becomes more complex. This paper reports a synthesis of the results of two projects that evaluated risk management approaches for subsurface issues related to geotechnical conditions and utility coordination. The projects identified effective practices for managing geotechnical and utility risk in construction manager/general contractor (CMGC), DB, and P3 projects. A toolset to expedite subsurface risk reduction is proposed. Effective practices are identified in the areas of enhancing pre-award communications on subsurface issues; the use of differing site conditions clauses; and aligning owner and contractor perceptions of subsurface risks as early as practical. The paper finds that contract language is not sufficient to transfer the risk of changed subsurface conditions. The owner actively must communicate all available subsurface information during procurement and pursue a strategy to reduce/retire subsurface risk expeditiously after award.