2 replies to this topic

[MurtazaHakim]

Greetings to all the forum members. I have a query regarding the hierarchy of stages in an EPC/EPCM contract and their deliverables. As far as I understand the EPC/EPCM contract consists of the following stages:

1. Feasibility/Conceptual studies

2. Basic design/FEED

3. Detailed design

4. Procurement

5. Construction

6. Commissioning

 

What are the deliverables at every stage mentioned above ? How do process licensors interact with the EPC/EPCM contractor(s) ? Do Lump Sum Turn Key projects involve carrying out all of the above stages by a single organisation ? I am a recent petrochemical engineering graduate and the above concepts were unfortunately not taught in any of the university courses I had at my college. I hope the experienced members would help me in understanding the above concepts in order to get a clearer idea of what are the industrial practices in this regard. 

[Saml]

You are getting into project management. A discipline worth of a career itself. So what I write will be neccesarily brief and incomplete.

 

1. Feasibility/Conceptual studies

Whatever you need to do to determine if a project has a good chance of being successful. Typical information developed:

- Location

- Cost Estimation +/- 30 to 50%

- Sources of Raw Materials/Products

- Logistics

- Key barriers to the project (social, permitting, securing raw material contracts, financing, political risk, etc)

- Mass Balance and preliminary sizing of main equipment.

- Technology selection and/or  alternatives.

 

2. Basic design/FEED

This is more foggy. Sometimes they make a difference between "basic engineering" or "extended basic engineering" On this point, there is usually a detailed contract that stipulates what is to be included in the final work.

 

3. Detailed design

What you need to build.

 

4. Procurement

Purchasing all that is needed to build the plant (materials and services)

 

5. Construction

Well... no much explanation here.

 

6. Commissioning

- Feeding raw material for first time. It is sometimes separated into precommissioning (testing loops, filling with water, cleaining)  and commisioning (feeding raw material)

 

Then you have the forms of contracting. Each stage can be done either in house (a big corporation with resources for doing engineering and project management itsefl) or being contracted. These are done case by case and there is no general rule.

 

LSTK: you pay an ammount, and you get the plant running (at least in theory).

EPC. engineering Procurement and Construction

EPCM: engineering procurement and contruction management (it is less than the previous one, in this case you have another company doing the construction)

 

I am attaching a recommendation in spanish about the typical engineering documents generated in each step.

 

If you want to read more I've found the following two books quite easy to read and free of ramblings and PDCA circles.

 

"Planning, Estimating and Control of Projects" by Navarrete and Cole

"Industrial Megaprojects" by Edward Merrows (Merrows in the founding of IPA, one of the leading institutions in project management)

 

 

 

 

 

Attached Files

•  SC01-01-0-Alcances_de_Ingenieria.pdf   1.33MB   27 downloads

Edited by Saml, 27 June 2018 - 06:22 PM.

[MurtazaHakim]

I appreciate your response sir. Every project be it oil and gas or power or anything else requires an interdisciplinary approach and coordination. Which stage(s) in an EPC contract is/are important from a viewpoint of a Chemical engineer ? Where are (in which stage) the deliverables mainly expected from a Chemical engineer ?

 

I am attaching a recommendation in spanish about the typical engineering documents generated in each step.

Sir, did you intend to attach any document(s) ? In any case there are no attachments found. Please send the attachments if possible.

Edited by MurtazaHakim, 27 June 2018 - 12:23 AM.