ABSTRACT
Fair cost reimbursement is a critical factor in successfully managing TBM tunneling projects. Indirect costs, which are significantly time-related, are influenced by geological conditions and TBM utilization. While direct costs like labor, materials, and equipment are straightforward, indirect costs, though less visible, are vital to the project’s financial health. Up to 90 % of tunneling costs are time-related, depending on the performance and utilization. Geological conditions in the client’s sphere affect the tunneling rate and the occurrence of geological challenges, potentially causing delays and requiring additional measures like ground stabilization and water control. TBM utilization, managed by the contractor but influenced by geological conditions, impacts operational efficiency and continuity. Optimal utilization minimizes time-related indirect costs by ensuring consistent progress and reducing downtime, whereas underutilization can increase these costs. A collaborative compensation and reimbursement approach based on comprehensive facts is essential, determined collaboratively by both parties. Contracts should clearly outline client and contractor responsibilities, including mechanisms to address and mitigate time-related indirect costs. This includes compensating contractors for geological conditions and incentivizing efficient TBM utilization.
