Discrete element models are being increasingly applied to model rock failure processes. Bonded-particle models, based on circular or spherical particle systems, have been successfully used for two decades. More recently, bonded-block models, using polygonal or polyhedral elements, have proven to be a powerful alternative. This paper describes the basis of the application of these models in the numerical simulation of failure in rock materials. The critical governing parameters are identified, and their influence is discussed. The model calibration procedure based on the analysis of laboratory tests is discussed. An application example of an underground excavation problem is presented using a simple bonded-block model employing rigid blocks and a bilinear softening contact model. The results show the capability of this approach to reproduce observed failure modes involving block fractures.