TECHNICAL | ITA/RISK MANAGEMENT
UPDATED CODE ON RISK MANAGEMENT
Earlier this year, the ITA and IMIA published the updated, 3rd edition of their Code of Practice for Risk Management in Tunnel Works
Intended to describe what is judged to be best practice or guidance, the 3rd edition of the Code of Practice for Risk Management in Tunnel Works was jointly published earlier this year by the International Tunnelling and Underground Space Association (ITA) and the insurance industry, represented in the International Association of Engineering Insurers (IMIA). As they say in the Preface to the 28-page report,
the Code is not legal or a legally binding document in itself – but, they add, “It may, however, be contractually binding if referred to as such in, for example a construction contract or an insurance policy.” The intent of the Code is strategic with advisory
tactics. It was prepared jointly by the insurance and tunnelling industries to help reduce the frequency and severity of serious incidents, that result in insurance claims, “to within sustainable boundaries.” The organisations add that if the best practice is followed in management of construction risks then not only should the significant insured losses be reduced but so, too, should uninsured losses be lessened across the industry. To get there, the organisations surveyed for opinions
on how the prior edition of the Code had been applied, and key areas of revision in the update, which the chapter structure follows, include primarily: listing principal attributes expected in the Code; considering competence and culture; differentiating between what is risk management and what is the management of risk; and, clarifying the importance of managing high consequence events. Language improvements have been pursued in
emergency response plans, and also for activities in instrumentation and monitoring. The Code has been used for 20 years and, in the new
era of digital work in construction, the updated includes a section of digital modelling. Widespread adoption of the Code, built upon the first
two editions, “has succeeded in reducing incidents and losses to tolerable levels,” the authors say. They add that, for the tunnelling industry, the Code
“represents a robust framework on which projects can be modelled” while the insurance industry “uses the Code as a benchmark against which projects can be assessed” – and compliance may be needed to get cover during the construction phase, focused on Construction All Risks insurance.
24 | September 2023 For tunnel projects, the guidance is intended to sit
alongside local laws, regulations and standards – but, on the latter, will lead where its provisions “are more extensive and/or more onerous”. The Code’s 3rd edition has 11 chapters (all are
succinct with discussion of the ‘Construction Stage’ the longest), two appendices (definitions & terms; and, a clause-based schedule of deliverables), and its format is solely text and tables.
Objectives & Scope In outlining the objectives of the Code, the guide states it covers both design and construction of tunnel projects, that it requires risks to be identified, allocated and managed (using assessments, registers and treatment). With regard to ‘principal attributes’, tunnel projects
need to be arranged such that they have, as advocated by the guide, sufficient competence and resources to match all aspects of the endeavour – project complexity, contract mechanisms, management structures (role, responsibilities); and also suitable culture (collaborative, risk-aware, information sharing – including with digital models). Further, risks need to be identified, classed in
likelihood and weighed in consequence, and mitigated against, for the construction stage of an infrastructure development but also through the design life of the asset. However, while noting the latter, the authors say the scope of the Code is only applicable to the operational term of tunnels up to the end of the stipulated defects liability or notification period, and impacts of such assets to third parties. Otherwise, operational performance of tunnels and underground assets is excluded. Explicit acknowledgment is needed, the guide
says, that insurance is not a risk allocation, control or treatment measure. Sufficient site and ground investment is called for in all these regards – ahead of procurement completion and contract award. Before the contract is signed, the related
documentation needs to detail all these factors related to risk – assessment and allocation as well as including ground reference conditions, method statements, and change procedures. And, before all that, the bidders need to be given “adequate time” to assess the risk before submitting their tenders.
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