Boulder detection methods and its compensation is discussed with consideration of boulder conditions in soft ground tunneling by shielded TBM. For analysis of proper compensation methods for boulder obstruction, its removal costs and cases on eight projects are presented. Compensation for boulder obstruction removal by volume or weight is not practical for most tunneling situation, but compensation by crew time is probably the most equitable method. If boulders are anticipated on project, boulder removal plan must be considered with proper equipment selection.