An Improved Approach to a Trenchless Latent Condition Claim

Abstract

This paper describes an alternative approach to the way a latent condition claim was assessed for the trenchless component of a new gravity sewer installation project. The section of the project in question involved the new installation of a 700mm diameter GRP gravity sewer pipe employing the Axis Microtunnelling methodology in Donnybrook, Victoria. The tunnelling medium was highly variable ranging from soft group to hard rock in the form of the newer volcanics: Basalt. The trenchless contractor ran into problems where the initial head and tooling was getting jammed in what was thought to be unexpected voids and variability in the strata. There was uncertainty as to whether the voids were a latent condition or contributed to by tunnelling. Rather than enacting the laborious legal dispute the project stakeholders enacted a unique process whereby they executed a tripartite agreement binding the Client, the Principal Contractor and a trusted independent Consultant. This Expert Determination Agreement governed a process whereby the independent consultant reviewed the project situation and provided a professional independent determination as to whether there was entitlement for a latent condition claim. The agreement went on to bind the parties to the determination of the Consultant whatever was concluded. This mature contracting approach concluded an efficient and effective way to determine a latent condition claim’s validity and extent, which enabled the parties to move forward with finalizing the quantum in a fair and reasonable manner without significant legal involvement.