F.E.E.D

From: COMOS Industry Solutions
Around 80% of the entire costs are defined in the early planning phase of an industrial plant construction project, the so-called Front End Engineering & Design (FEED) phase. Decisions that are made at the start of this FEED phase influence subsequent design tasks and largely determine the usability, performance and cost-effectiveness of a plant or unit. These in turn have a direct effect on the safety and environmental compatibility of the plant or unit in subsequent operation.

The FEED phase is divided into three task areas when setting up a new plant or unit:

• Provisional decision on investment by the owner or investor for the construction of a unit or plant
• Production of quotations by an EPC contractor
• Early phase of the Basic Engineering after the order has been awarded.

The provisional decision on investment is based on a process and conceptional technical draft that is controlled as a rule by the operator of the plant or unit or the licensor of the technology or process. Here the procedure is designed and simulated. The aim is a first cost estimate (± 25 %) and the description of the plant or unit in the form of process specifications, including the process flowcharts and installation planning as applicable so as to estimate the amount of space required for the unit or plant. The estimate of costs in this phase is often based on data from existing plants or units from which the corresponding estimates can be made. If this is relevant in business terms, the quotation phase now starts for the project. The conceptional draft in elaborated in the quotation and a search is made for a solution that is determined by the requirements and limitations of the process, the overall constructional conditions and other project specifications.

The most important things to be done in this phase consist of a calculation of costs (± 10 %)‚ determined by the provisional design of all the supply items. These form the basis for the binding cost proposal of the EPC contractor and serve as a template for the Basic Engineering.

Once the final decision on investment has been made in the early Basic Engineering phase, the concepts and details in the quotation are investigated and stipulated in detail by an EPC contractor and all the main supply items are specified and stated. In addition, the calculation of costs that has been made is checked continuously and modified if necessary.