PROJECT INITIATION

 

We help owners and contractors realize an increased probability of project success by assisting with key front-end tasks, such as feasibility evaluation; scope and work statement definition; FEED studies and basic engineering; early risk element and stakeholder identification; cost and schedule estimating; and achievement of an authorization to proceed. Our deliverable is a report that will consolidate findings and recommendations for each of the elements examined. 

Our advisory services assist with confirmation of both business and technical viability of a project before major capital expenditures are committed, following an industry standard structured approach to initiation consisting of three consecutive Front-End Loading (FEL) phases, before authorization of a project’s detailed design phase.

FEL I (FEASIBILITY)

FEL I is the conceptual phase of project initiation. It defines the purpose and goals of the project.  Decisions made at this stage have a major impact on the success of the project.  Working with our client we assist with selection and implementation of appropriate parameters from an FEL checklist. Topics may include but are not limited to:

• Product market demand
• Project capacity
• Stakeholder identification
• Preliminary business plan
• Site availability
• Project feasibility
• Project objectives
• Major milestones schedule
• Long lead time identification
• Feedstock availability
• Order of magnitude cost estimate
• Feasibility cost estimate
• Technology selection
• Permit identification

With these parameters established we assist with a go/no-go decision process and help with team composition and contractor selection should a decision be made to proceed with Pre-FEED, or FEL II.

FEL II (PRE-FEED)

In FEL II the project’s design basis is established with key deliverables developed in preliminary form.  We assist the project team with identification, timing and facilitating appropriate Value Improvement Practice (VIP) workshops that may optimize the design during FEL II or extended into FEL III, such as:

• Technology Selection
• Process Simplification
• Constructability Reviews
• Design to Capacity
• Value Engineering

Project and engineering management documents completed in this phase may include:

• Business plan confirmation
• Basic engineering design data
• Risk register
• Master deliverables list
• Preliminary equipment list
• Risk mitigation plan
• Permit & regulation planning
• Site investigation study
• Class 4 budget estimate
• Project execution plan
• Utility requirements
• Process and utility flow diagrams
• Preliminary hazard analysis
• FEED and execution schedule

FEL II Pre-FEED is regarded as the best phase to consider all available options and make changes. As the project moves further into development the ability to influence its direction of the project is progressively lost. At this point we assist our client with establishing the best criteria to make an objective judgment toward continuing into FEL III FEED process.

FEL III (FEED)

Our FEL III advisory services help ensure studies and philosophy documents are completed early in FEED to finalize the scope of the design, all process documents are issued for design (IFD), and major equipment data sheets and specifications are issued for quotation to ensure an accurate cost estimate for the project.  We assist with key decisions such as timing and quality of preliminary modeling of critical piping, mechanical equipment and electrical works to support a good material quantity estimate.

In addition to Issue for Design (IFD) quality design documents such as P&ID’s; plot plans and critical equipment layouts; the equipment list; data sheets; electrical single lines; and area classification, project and engineering management documents completed in this phase may include:

• Business plan finalization
• Detailed EPC project execution plan
• Class 3 CAPEX estimate
• Utility Flow diagrams
• Permits advanced in progress
• Heat & material balances
• Change management plan
• Training, commissioning, & startup
• Preliminary HAZOPs
• VIPs completed
• Readiness to proceed to detail design    

 

At the completion of FEL III FEED approximately 30% of the design budget will be expended.