ABSTRACT
This chapter provides an introduction to the main concepts associated with good contracting practices for underground construction including contact types, prequalification, method of payment, risk sharing, geotechnical baseline reports, contact management, partnering, dispute resolution and claims management. A consistent and complete set of contract documents is required to be prepared and implemented by all parties with a positive attitude for a successful project outcome. A unit rate and lump sum type of contract represents the most common type of contact for tunnels. The tunnel constructor is responsible for production and includes profit in the unit rates and lump sums of each item. The final price of the project is dependent on the quantities needed to carry out the work. For an all-risks contract with a firm fixed price the form of payment is typically based on milestones related to the construction schedule and completion of the work.
