Procurement of microtunnelling projects

Microtunnelling involves the construction of pipelines using remotely controlled tunnel boring machines, controlled from the surface. It is employed for the construction of pipelines with internal diameters up to 1500mm. The technique was introduced in 1986, and the size of its market has grown steadily over the intervening period. However, this growth has not been at the rate hoped for by promoters of the technique.This thesis addresses a UK water company's desire to increase its use of microtunnelling technology. The improved performance of the mechanisms utilised to procure microtunnelling projects is shown to be the principal means of achieving this increased use. The purpose of this improved performance is to increase the cost competitiveness of microtunnelling techniques in comparison with existing pipeline construction techniques. This thesis shows that the cost of constructing an ongoing workload of microtunnelling projects can be reduced by up to 5% by the use of improved procurement mechanisms.A risk allocation strategy in which the client accepts a far greater responsibility for risk and a payment mechanism aligning the aims and goals of the contracting parties are identified. Procurement mechanisms that differentiate contractors on the basis of their ability to manage construction risks and provide guaranteed workloads to able contractors are proposed.