A Pumps & System s eb o o k

How to Create a
Comprehensive
General Scope Document
By William Livoti

Sp o nso re d by
2 How to Create a Comprehensive General Scope Document

Contents

Introduction

GENERAL SCOPE DOCUMENT STEPS

1 PURPOSE AND JUSTIFICATION OF THE PROJECT

2 PROJECT SCOPE DESCRIPTION

3 HIGH LEVEL PROJECT REQUIREMENTS

4 PROJECT BOUNDARIES

5 PROJECT STRATEGY

6 PROJECT DELIVERABLES

7 OWNERS ACCEPTANCE CRITERIA

8 PROJECT CONSTRAINTS

9 PROJECT ASSUMPTIONS

10 COST ESTIMATES

11 COST BENEFIT ANALYSIS

Case Study
In Conclusion

William Livoti

Introduction

Popular Pumps & Systems columnist William Livoti
devoted an entire year to explaining the importance of
the general scope document (GSD). As Livoti says, “It is
important to understand why the end user or equipment
owner must take the responsibility of preparing a GSD
for a given project.” From examining project boundaries
and deliverables, to spelling out the cost estimates,
Livoti leads you through the process of creating a GSD
that will making planning a pumping system project
more efficient, more thorough and, hopefully, more
cost-effective.
Livoti is now retired after more than 40 years of working
in the pump industry. He is a member of the Pumps &
Systems Editorial Advisory Board, and he can be reached
at wlivoti@outlook.com.

e-b o ok | Pumps & System s


3 How to Create a Comprehensive General Scope Document
Purpose and Justification of the Project
A
s a columnist for Pumps & Systems
magazine, I often write about the
General Scope Document (GSD),
addressing various items that should be
addressed in said document when planning
a pumping system project. It is important to
understand why an end user or equipment
owner must take the responsibility of
preparing a GSD for a given project.
The following ebook will review each
individual component of the scope
document in detail. The GSD consists of 11
components or tasks. Here they are in order
of priority:
1. Purpose And Justification Of
The Project
2. Scope Description
3. High Level Project Requirements
4. Project Boundaries
5. Project Strategy
6. Project Deliverables
7. Acceptance Criteria (Owner)
8. Project Constraints
9. Project Assumptions
10. Cost Estimates
11. Cost Benefit Analysis
The process as defined above should be
followed when preparing a scope document
for any project. Do not restrict this process to
just pumping systems.
The first step in preparing a GSD for
any project, not just a pumping system, is
establishing the purpose and justification for
the project. This may sound like a no-brainer,
but this critical piece of information is often
left out by the end user when submitting
their request to the engineering design firm.
What information should be included in
the purpose and justification portion of the
scope document? As the category states,
why are we initiating this project and what is
the justification? Justification should include
downtime, lost production and the financial
impact to the facility. As an example, let us
e-b o ok | Pumps & System s
1
use a pump system upgrade project. This
example is a combined cycle power plant
that requires a condensate system redesign.
PURPOSE
This project is being initiated due to the
unacceptable frequency of failures of our
condensate pumps resulting in forced
outages and lost revenue as well as excessive
maintenance cost and lost production. The
failure or repair rate of condensate pumps
has increased from two failures per year to
nine failures over a four-year period. The
industry standard for mean time between
repair (MTBR) is 15 years.
Therefore, the purpose is to eliminate
failures and bring the reliability and MTBR
of the condensate pumps within the “Detailed
industry standard. maintenance
JUSTIFICATION
records can
The condensate pumps have experienced a
be a huge
total of 21 failures over the past four years, advantage
and this failure rate is well above industry when
standard. According to plant maintenance developing
records, condensate pumps failures have project
cost the plant $1.5 million dollars in repairs. justification.”
This cost includes motor and pump repair
as well as removal and installation cost. Lost
production and downtime over the past four
years has totaled $11.5 million dollars.
One can see from the maintenance and
operations history that this project’s purpose
and justification was well documented
and easily justified primarily due to good
maintenance records. Detailed maintenance
records can be a huge advantage when
developing project justification.
In conclusion, preparing the purpose and
justification is the first step in developing the
scope document and requires participation
of all parties with a vested interest in the
system under evaluation.
Teamwork is key to developing a successful
scope document.
 2
4 How to Create a Comprehensive General Scope Document

Project Scope Description

T
he second portion of the general SERVICES
scope document is the project As with the pump system description,
scope description. What should be provide a list of the services/support required
included in this portion of the general scope for the project.
document and how detailed should it be? Example of services as follows:
In a previous article, I addressed the pump • installation
selection criteria as a portion of the project • alignment
scope description. • start-up
However, the pump selection criteria can • commissioning/performance test
be in other portions of the general scope • baseline vibration
document as necessary to provide the clarity • stray current test
needed to allow the engineering firm and
contractor to estimate costs. RESULTS
The project scope description should The results portion of the project scope
include the characteristics of the products, description should not be confused with the
services, and/or results the project will owners’ acceptance criteria. Results should
produce (not to be confused with owners simply address/state the expected outcome “The project
acceptance criteria). of the project upon completion. Example of scope
What does this look like? results as follows: description
For a pumping system we would provide a • required head/flow should
clear description of: • system efficiency include the
• vibration characteristics
PRODUCTS / COMPONENTS • reliability of the products,
• type/configuration of the pumps. This • flow velocity services, and/
is where you may want to include the Depending on the project and input from or results the
pump selection criteria from my earlier the team, the results portion of the project
article or at least a portion of the said scope description may vary.
project will
document Remember, clarity is power. If you do
produce.”
• variable speed control (type) not clearly define the project expectations,
• driver (induction motor, steam, you will more than likely end up with a less
combustion engine, synchronous) than acceptable system. In other words,
• coupling an unreliable, inefficient, problematic
• controls system that will eat up your operations and
• base plate design maintenance budget.
• grouting (type)
• valves (type)
• piping

e-b o ok | Pumps & System s

Reliability
Operations managers maximize pump station

to decrease maintenance costs.

EcoStruxure™ for Water & Wastewater improves

pump station performance for optimal efficiency.

• Reduce operational expenditures up to 15%.*

• Extend asset lifespan.
• Continuously improve operations through KPI monitoring. EcoStruxure Pumping
Performance Advisor
#WhatsYourBoldIdea

se.com/water

* Based on previous data, 2018. This is not a guarantee of future performance or performance
in your particular circumstances.
©2020 Schneider Electric. All Rights Reserved. Schneider Electric | Life Is On and EcoStruxure are
trademarks and the property of Schneider Electric SE, its subsidiaries, and affiliated companies.
998_20811863_GMA-US
 3
6 How to Create a Comprehensive General Scope Document

High Level Project Requirements

T
he third portion of the general scope As a result of the circulating water pump
document (GSD) is the high level upgrade, with the increased flow of 40,000
project requirements. gallons per minute (gpm), the net megawatt
This section should clearly describe (MW) output would be increased by 10
the capabilities to be met by successful percent. Vibration and pump mean time
completion of the project. Let me emphasize, between repairs (MTBR) would be within
capabilities to be met by successful Hydraulic Institute standards.
completion. You may recall in my previous As noted above, the high level
articles I will often state, “clarity is power.” requirements have been addressed in two
We could perhaps rephrase the statement to well worded sentences. Keep in mind this
read, “clarity avoids confusion, conflict and section addresses “high level” requirements.
less than satisfactory results.” Additional details will be addressed further
Regardless of the precise wording, the fact into the scope document.
remains that you should clearly define and It should also be noted that the criteria
state your expectations. stated in this segment will also be used in the
For the high level project requirement owners acceptance criteria (OAC) portion of
portion of the GSD, the “scope team,” the general scope document.
consisting of all parties that have a vested
interest in the project, you would include
what is expected as a result of successful
completion. The various members of the “Engineering,
team would each have specific concerns maintenance,
relative to their duties and responsibilities. operations,
Engineering, maintenance, operations, production,
production, purchasing and reliability all purchasing and
have different interests and concerns relative
to the project, and they are all valid.
reliability all
Use a power plant circulating water pump
have different
upgrade as an example of a high level project
interests and
requirement statement. concerns
relative to the
project, and
they are all
valid.”

e-b o ok | Pumps & System s


7 How to Create a Comprehensive General Scope Document
Project Boundaries
T
he fourth portion of the general
scope document (GSD) is the project
boundaries.
Now, we are getting into a bit more detail.
In this section, you should clearly define the
equipment and services included as well as
those not included.
Project boundaries represent one of the
components of the scope statement. This
component is also referred to as “The Project
Boundaries Identification.” This section
should clearly define the extent of the
project scope (the scope baseline) and serves
as an effective method for making decisions
on the content of project work.
PROJECT BOUNDARIES STATEMENT
“In terms of project implementation, the
boundaries of a project are the reasonable
limits of project work to determine what
is included in the project and what’s not.
The boundaries are defined as measurable
and auditable characteristics and closely
linked to project objectives. They create a
holistic project perception, determine limits
and exclusions of the project, and form
the content of project scope in terms of
expected results.”
SOURCE - mymanagementguide.com
As stated early on in this series of articles
on GSD, it is a team effort. This section is
no exception as several factors must be
addressed that require the input from
various disciplines within the stake holder
facility/operation.
The factors are:
• Project goals – Extent of project work
and overall duration
• Project phases – There are five phases
defined by the project phasing process
including measure, plan, produce,
introduce and manage
e-b o ok | Pumps & System s
4
• Product scope – Address function and
features of the equipment (pump, motor,
variable speed drive, piping, valves, etc).
This is a team effort.
• Group accountability – This is bears
repeating: it requires a team effort.
All parties with a vested interest in
the project should be involved in the
development of the GSD and especially
in this section.
The benefits to identifying and clarifying
project boundaries include:
• Define where the project starts and
stops
• Plan human resources, job requirements,
vendor surveillance and site visits, to
name a few
• Roles and responsibilities, accountability
of team members and work force
At the conclusion of this General Scope
Document series in Pumps & Systems, I
will provide a detailed case study where a
extensive root cause failure analysis was
performed on three vertical turbine pumps
in a water filtration plant.
Spoiler Alert: The root cause is that the end
user failed to develop a GSD.
The case study will demonstrate the
importance of developing a solid, well-
developed GSD as well as the financial
impact on various vendors involved in
the project.

8 How to Create a Comprehensive General Scope Document
Project Strategy
T
he fifth component of the general
scope document is the project
strategy.
As we move through each portion of the
general scope document, specific details
begin to emerge. Project strategy outlines
in detail how the project team (remember
this is a team effort) will execute the project.
Obviously, strategy may vary depending on
the size of the project. For example, a simple
pump upgrade will require significantly less
detail than a major plant expansion. You still
need to do your homework, and all parties
with vested interest in the project must
be involved.
What does a typical project strategy
statement look like? Let us use a simple
pump upgrade project as an example.
SAMPLE PROJECT
STRATEGY STATEMENT
The project team will use a pumping system
specialist from XYZ engineering. XYZ
consulting will support the project leader
and team in developing a flow model (using
state of the art flow modeling software) of
the system in question to determine the
most efficient, reliable pump package that
will insure the upgraded system will meet
current and future requirements as defined
by the project leader and team members.
e-b o ok | Pumps & System s
5
DETAILS
The project team has also determined that
they do not have the inhouse resources
to perform this work and (as a team) have
identified and agreed upon a specific
engineering firm with the necessary skill
sets that the team members feel is necessary
to insure the success of the pump/system
upgrade. The team also clearly stated that
the flow model must be performed using
“state of the art” flow modeling software
and that the pump upgrade must meet
current and future requirements (as defined
by the team).
As you can see, details begin to emerge
in the general scope document—details
that may or may not have been identified “Project
had the project leader not had the input of strategy
those with a vested interest in the system
in question.
outlines in
detail how the
project team
will execute the
project.”
 WE CAN HELP
Our high performance solutions make us your source for everything
sealing, including mechanical seals, pump and valve packing,
air seals and bearing isolators.

GFO is a registered trademark of WL Gore and Assoc.

800-633-4770 www.sepco.com

10 How to Create a Comprehensive General Scope Document
Project Deliverables
T
he sixth component of the general
scope document is the project
deliverables.
Developing a general scope of work
document is an important part of doing
business. Your statement of work not only
spells out specific phases and details for a
project, but it also helps tell the story of the
work you plan to do. The scope of work your
business plans to do will be spelled out in the
project deliverables section.
The project deliverables is yet another
critical portion of the general scope
document. Simply stated, project
deliverables are the products or outputs that
the successful completion of the project is
intended to produce.
A deliverable is a product or service
created to achieve a project objective. Seems
straight forward, right?
When you embark on a project, it should
be obvious what you are going to create,
right? Unfortunately, that is not always
the case. That is why it is important to
define and capture the description of the
intended deliverable(s). The team needs
enough details (from each stakeholder with
vested interest in the project) to know what
it is producing or developing, and how
to measure the outcome during testing
and review. Perhaps most important of
all, the team needs to be sure of what the
stakeholders want and that they will approve
the final result.
Project deliverables is where many projects
fail to achieve the desired results. Why?
Because many general scope documents
fail to clearly define the project deliverables.
This one critical step can spell disaster during
the owner’s acceptance process and most
certainly when you are validating the cost
benefits of said project.
What should be included in the project
deliverables statement? This is somewhat
e-b o ok | Pumps & System s
6
redundant but bears repeating: A
clear definition of the result of the
successful completion of the project.
Among project management
deliverables, there is a distinction
between project and process
deliverables. As stated earlier, a
project deliverable is a result, while
a process deliverable is the path you
take to achieve that result. Process
deliverables include things such as
the scope of work and a statement
of work. A scope of work sets the
intentions for the project at the start
and includes such things as the project
stakeholders, project goals and objectives,
and intended deliverables.
Like the objectives they serve to
achieve, deliverables must be specific and
measurable. If a deliverable is not specific or
does not directly serve the objective, it has
no place in the project plan. The measurable
aspect of deliverables means they must meet
defined acceptance criteria (the owner’s
acceptance criteria).
Listed below are a few examples of project
deliverables. Each item is specific and
measurable.
• vibration (reference standard)
• system efficiency (over operating
envelope)
• type of pump or configuration
• speed (range or limitation)
• head (process)
• flow (process)
• mean time between repair
(reference standard)
• horsepower (limits)
• voltage (limits)
This is not a comprehensive list of all
project deliverables. However, it gives a
general idea of what should be included in
this portion of the GSD.
 7
11 How to Create a Comprehensive General Scope Document

Owners Acceptance Criteria

A
cceptance criteria are important. CLARITY IS POWER
Unfortunately, we often overlook During my 45-plus year career, I have worked
or undervalue it as an aspect of the for several pump and motor OEMs. I have
iterative planning process. It is extremely lost count as to the number of times I have
important because projects succeed or fail been called to a site during commissioning
based on the ability of the team to develop due to issues with my company’s product. As
comprehensive, all-inclusive acceptance a side note, I have come to realize that when
criteria that provide the expected results as addressing a pumping system, it is always a
outlined in the project justification of the motor or pump problem (more on this later).
general scope document (GSD). By the time I am called, the client is typically
When we clearly define the criteria up at the end of his patience. My first action is to
front, we avoid surprises at the end and calm everyone down and to assure them that
ensure a higher level of satisfaction. In we will get the issues resolved.
other words, we are able to answer these When addressing a commissioning issue,
two important questions: Did we achieve I always ask for the engineering data and
the desired system requirements? And, specifications, as well as (ready for this) the
“The OAC
did we meet or exceed the justification of GSD that includes among other critical items
should contain
the project? the owners acceptance criteria. step-by-step
The acceptance criteria, also known as Why do I ask for this information up criteria for
owners acceptance criteria (OAC), is perhaps front? If the end user did not ask for certain the selection,
the most comprehensive segment of the criteria to be met, why would you expect installation
GSD and, therefore, requires a fair amount of the engineering, procurement and and operation
effort from the team members and attention construction (EPC) firm or contractor to of the pumping
to detail. provide said deliverable? system.”
You cannot expect the EPC or contractor
WHAT ARE ACCEPTANCE CRITERIA? to read your mind, nor can you expect them
They are the conditions that a product or system to go the extra mile, as this costs money.
must satisfy to be accepted by the end user or That being said, I cannot count the number
equipment owner or, in the case of system-level of times I heard the following comment from
functionality, the consuming system. an unhappy end user, “I thought that was
Acceptance criteria are a set of statements, a given” or “I expected the EPC to do that.”
each with a clear pass or fail result (no Sorry folks, it does not work that way. You
gray area), that specify both functional need to state your criteria up front in your
and nonfunctional requirements and are GSD for all the potential “bidders” to see.
applicable throughout the operating range You can look at the OAC as your “get out
of the system. Acceptance criteria constitute of jail free card.” If you clearl—let me say it
the end user’s or equipment owner’s again: clearly—state your acceptance criteria
definition of “done,” and by done, I mean in the GSD, the EPC or contractor does not
well done. have a leg to stand on. They must meet your
Let me be very clear: There is no partial OAC. Make sense?
acceptance. Either the acceptance criteria are
met, or they are not.

e-b o ok | Pumps & System s

12 How to Create a Comprehensive General Scope Document
continued
Owners Acceptance Criteria
WHAT SHOULD BE
INCLUDED IN THE OAC?
I am sure you heard the expression “the devil in
the details.” Well the OAC portion of the GSD is
no exception. As a team, make sure everyone—all
stakeholders in the project—provide input as to their
expectations of a successful product or outcome (both
functional and nonfunctional requirements).
EXAMPLE OF AN OAC
The best strategy for OAC is to develop a spreadsheet
containing said criteria. Depending on the criticality
of each component, you may want to include a
witness or sign off by management (remember to
trust, but verify).
The OAC should contain step-by-step criteria for
the selection, installation and operation of the
pumping system.
This can be compiled in a spreadsheet that contains
specific criteria, witness check points and standards (if
applicable), as well as acceptable limits if standards do
not apply.
This would include, but is not limited to:
• pump selection
• system requirements (over-operating envelope)
• head
• flow
• mean time between repairs (MTBR)
• pump efficiency
• base plate (grouted type with Epoxy)
• installation (you may want to reference API 686)
• vibration criteria
• system efficiency (over-operating envelope)
• pump or system performance (above and beyond
system efficiency)
Image 1.
e-b o ok | Pumps & System s
There is much more to the story than listed in the
criteria above. For additional information, please
contact me at wlivoti@outlook.com for additional
details and input specific to the GSD and OAC.
FINAL THOUGHT
Implementation of the OAC is an ongoing process
throughout the entire project as the process kicks
off in the design phase and ends during the
commissioning process.
MAXIMIZING RELIABILITY
Many of you may be familiar with the “bathtub curve.”
This is used in reliability, engineering and maintenance
industries to describe failure rates over time. The curve
consists of three periods: an infant mortality period
with a decreasing failure rate; followed by a normal life
period (also known as “useful life”) with a low, relatively
constant failure rate; and concluding with a wear-out
period that exhibits an increasing failure rate as noted
in Image 1.
What does a reliability curve have to do with the
GSD and OAC? Quite a bit. By clearly stating the
requirements and deliverables up front in the GSD and
drilling down to the details in the OAC segment, the
end user can minimize (ideally eliminate) the startup
commissioning issues and extend the useful life period
(Image 2), thus maximizing the overall reliability of the
pump system.
Image 2.
 8
13 How to Create a Comprehensive General Scope Document

Project Constraints

P
roject constraints are the next step in as incremental timelines throughout the
the scope development process. project. Be specific when developing
What do we mean by project the timeline taking into consideration
constraints? Project constraints are equipment/component deliveries as well as
limitations that the project may be faced resources, activity performance and logistics.
with due to funding, scheduling/time, Resources: Identify and state the type,
technology or resources. These constraints amount and availability of resources
may also be physical, such as logistics or to perform the project. Resources may
perhaps equipment availability. include people (in-house personnel),
funds, equipment (cranes, compressors,
WHY IS IT IMPORTANT TO power sources, etc.), facilities (office
IDENTIFY PROJECT CONSTRAINTS space, workshop, machine shop, etc.), and
(LIMITATIONS)? information (drawings, location of piping and
Prior to developing the GSD, identifying power lines, testing, etc.).
project constraints may influence how Activity Performance: Activity
you manage your project and may even performance identifies strategies for
determine whether you decide to proceed performing the different tasks. An example
with your project. would be scheduling overhead crane
Relative to the GSD, constraints/limitations availability so as not to interrupt plant
may include: production. Other examples include
• Results: project may be cost prohibitive power disruption, compressor usage and
• Time Frames: limited amount of time to blocking thoroughfare/plant access. These
complete project (outage or turnaround) strategies must be carefully thought out and
• Resources: limited resources, people, documented in the scope document.
funding, materials etc. Logistics: Logistics is covered to some
• Activity Performance: may need to use extent in the activity segment; however,
site personnel it does require a bit more detail and,
• Logistics: equipment placement, therefore, warrants a line item. Logistics
movement within the site would include—but are not limited to—the
placement of contractor equipment, power
Once the team has determined that the availability staging of project materials,
project is viable, the constraints must be warehouse availability for equipment (such
identified in more detail. Look at each of the as a crane, forklift) that must be undercover,
items listed individually. and third party construction equipment
Results: Identify the anticipated results movement within the plant. Logistical
of the completed project. This may seem planning and identification of constraints
redundant relative to the owners’ acceptance may sound like a no brainer, but I have seen
criteria (OAC), but it is clearly stating the on several occasions where this fell through
absolute minimum that you would expect as the cracks and wound up creating havoc
a result. This would include input from within the plant and ultimately creating
all team members with a vested interest in significant delays in the completion of
the project. the project.
Time Frames: Define start dates and Project constraints/limitations are another
completion dates of the project as well important step in preparation of the GSD.

e-b o ok | Pumps & System s


14 How to Create a Comprehensive General Scope Document
Project Assumptions
W
e are nearing the end of the
general scope document (GSD)
series with three topics remaining:
project assumptions, cost estimates and cost
benefits analysis.
The conclusion of the GSD series will be a
comprehensive case study showcasing what
happens when the end user fails to develop a
general scope document.
PROJECT ASSUMPTIONS
A project assumption is a documented
fact, statement or interpretation that is
not expected to change during a project.
Assumptions are among the statements
that a project can make to clearly set
expectations. Project assumptions are factors
affecting the project that we believe to be
true, but that we have not verified to be true.
It is important to document our assumptions
because there is a level of uncertainty
associated with them, which introduces risk
to a project.
TIME ASSUMPTIONS
Time is the most significant cost-related
assumption and one that is the most
difficult to get right. Its significance lies in
that most every other assumption relies, in
part, on time. The difficulty lies in accurately
determining the time a project will take
from its inception to the final project
deliverable. An inaccurate assumption has
the potential to make almost every other
assumption incorrect. For this reason, time
assumptions are most often completed for
each activity and totaled at the end. A time
delay assumption of about 20 percent is
then added to account for unexpected or
unavoidable delays.
LABOR COSTS
Labor cost assumptions include direct
and indirect labor costs. Direct labor cost
assumptions are based on the total number
of hours each project team member is
e-b o ok | Pumps & System s
9
expected to work multiplied by his or her
hourly wage. Indirect labor cost assumptions
are based on time assumptions and wage
expectations for administrative personnel
who, while not responsible for a specific
deliverable, support the project indirectly.
Labor cost for contractors/vendors must
also be considered. In the case of third-party,
labor cost estimates can be obtained by
pre-bid inquiries to the respective vendors.
A word of caution: to avoid underestimating
the labor, add a safety margin.
INDIRECT COSTS
Indirect costs are most often considered
as a group rather than as individual items.
This group commonly includes utilities,
equipment rental, vendor surveillance and,
if appropriate, legal and audit assistance.
Miscellaneous expenses such as telephone
and computer usage, parking for contractors,
security, freight charges/permits must also
be addressed.
RETURN ON INVESTMENT
ROI is an expectation of the average
annual return as a percentage of a project’s
total cost. ROI is crucial for large system
expansions. Cost assumptions in an
ROI calculation include the total capital
investment, average after-tax cost savings
and average return on investment over a
specific period. The total capital investment
includes the total cost of ownership over
the asset’s useful life. Average after-tax
cost savings are savings in time, labor and
increased productivity. Average ROI is
average cost savings multiplied by the total
capital investment.
Depending on your specific project you
may have additional variables to consider
and include in your assumptions. Again, be
cautions when calculating the ROI, as that is
what upper management will be looking at
and the reason they are “holding your feet to
the fire” down the road.

15 How to Create a Comprehensive General Scope Document
Cost Estimates
A
ccurately estimating project costs is
crucial to the success (and subsequent
approval and completion) of a project.
Therefore, any under or overestimates of
the project can result in an undesirable
outcome. This would be especially true when
underestimating a project.
WHAT IS PROJECT COST
ESTIMATION?
Project cost estimations, the 10th part of a
general scope document (GSD) forecast the
resources and financial investment needed to
execute a project successfully. The objective
of a realistic estimation is to identify all the
costs associated with the project in order
to create an accurate budget and timeline
allowing the Engineering Procurement
Construction (EPC) bidders to prepare a
viable specification/proposal.
As one would expect, cost estimation and
ultimately budget management are two
of the most difficult challenges for project
managers. I have witnessed many heated
discussions when in the process of preparing
cost estimates as well as midway through a
project when cost ran over budget.
The better the estimation, the better you
will be able to plan your project.
As I have stated throughout this GSD
series, it is a team effort. Developing an
accurate cost estimate is no exception. Each
team member would provide estimates
(budgetary pricing) for their area/scope
of responsibility. Remember, each team
member has specific concerns. Make sure
each member provides feedback/estimates.
WALKING A FINE LINE
The greatest challenge to any project cost
estimation is to find the balance between
over- and underestimating. Because project
managers have the responsibility to deliver
projects on time and on budget, it can be
tempting to play it safe and overestimate
the costs of the project. That way, you are
e-b o ok | Pumps & System s
10
more likely to come in under budget and
exceed expectations. Unfortunately, there
is a downside, as that project may not be
approved. But, come in too low and you risk
blowing the budget. EPC bidders will be
using this document to develop the project
specification and subsequent proposal
based on your team’s input. Be as accurate as
possible with your estimates.
COST ESTIMATION METHODS
There are two methods for developing
cost estimates that I have found effective
for pumping system projects: analogous
and analytic.
ANALOGOUS
This method makes cost projections based
on historical costs for similar projects. In
other words, if your team repeats similar
projects (such as specific equipment repairs
or other regular initiatives), you can compare
those past projects and their associated costs
to your current project specs.
This method is most effective for projects
that have a high degree of similarity in
deliverables, scope and context. The more
variations or complexity between projects,
the more difficult it will be to make accurate
estimations. Make sure you update the costs
based on your historical cost. Costs do not
often go down over time.
ANALYTIC
An analytic estimate (also called bottom-up
estimating) is one of the most accurate
cost estimation techniques—but it can also
be time-intensive. Bottom-up estimating
breaks the project down into smaller parts
and then creates cost estimates for those
variables. This involves participation by each
team member analyzing what resources/
components need to be purchased and what
tasks need to be completed, then enlisting
subject-matter experts to estimate costs for
each item and task.

16 How to Create a Comprehensive General Scope Document
Cost Benefit Analysis
T
he 11th step in a GSD is the cost
benefit analysis (CBA). A CBA is a
strategy for evaluating the potential
for a project within the confines of a
company. Essentially, the purpose of a CBA
is to ascertain if executing the project or
operation is feasible, given the current
circumstances of the company/operation.
CBA in project management is an
important tool in your GSD toolbox. This
one has been devised to evaluate the cost
versus the benefits in your project proposal.
It begins with a list.
There is a list of every project “estimated”
expense and what the benefits will be after
successfully executing the project. From that,
you can calculate the return on investment
(ROI), internal rate of return (IRR), net present
value (NPV) and the payback period.
The difference between the cost and the
benefits will determine whether action is
warranted or not.
The primary purpose for using a CBA is to
determine if the project is sound, justifiable
and feasible by figuring out if its benefits
outweigh costs.
However, it can also be used to offer
a baseline for comparing projects by
determining which project’s benefits are
greater than its costs.
e-b o ok | Pumps & System s
11
HOW ACCURATE IS
COST BENEFIT ANALYSIS?
That is the million-dollar question.
Throughout my career, I’ve been asked
on many occasions upon completion of a
system assessment, failure analysis, energy
study etc.: What is your level of confidence
in your findings? My standard answer “it is
as accurate as the data provided by plant
personnel, DCS and historical data. For the
purposes of a CBA, it is as accurate as the
data you put into the process.”
Word of caution: it is wise to be
conservative with your estimates. I would not
want to be the team leader sitting in front of
management explaining why the project fell
short on ROI.
So, there you have it: the 11 steps of a GSD.
You can see how each step complements
another step in the process and the
importance of each step in the development
of the GSD. A solid GSD takes much of the
uncertainty/guesswork out of the bidding
process once the project is released to the
EPC or engineering design firms.
“The primary
purpose for
using a CBA is
to determine if
the project is
sound, justifiable
and feasible
by figuring out
if its benefits
outweigh costs.”
17 How to Create a Comprehensive General Scope Document

THE COST BENEFIT ANALYSIS PROCESS

The CBA process dates to 1848. French engineer Jules Dupuit
outlined the 10-step process in an article as follows:

1. What are the goals and objectives of the project? The first
step is perhaps the most important because before you can
decide if a project is worth the effort, you need a clear and
definite idea of what it is set to accomplish.
2. What are the alternatives? Before you can know if the
project is right, you need to compare it to other projects and
see which is the best path forward.
3. Who are the stakeholders? List all stakeholders in the
project (team members).
4. What measurements are you using? You need to decide on
the metrics you’ll use to measure all costs and benefits. Also,
how will you be reporting on those metrics?
5. What is the outcome of costs and benefits? Look over what
the costs and benefits of the project are and map them over
a relevant time period.
6. What is the common currency? Take all the costs and
benefits you have collected and convert them to the same
currency to make an apples-to-apples comparison.
7. What is the discount rate? This will express the amount
of interest as a percentage of the balance at the end of a
certain period.
8. What is the net present value of the project options? This is
a measurement of profit that is calculated by subtracting the
present values of cash outflows from the present values of
cash inflows over a period.
9. What is the sensitivity analysis? This is a study of how the
uncertainty in the output can be apportioned to different
sources of uncertainty in its inputs.
10. What do you do? The final step after collecting all this data
is to make the choice that is recommended by the analysis.
The entire team should be part of the decision-making.

e-b o ok | Pumps & System s

18 How to Create a Comprehensive General Scope Document
Case Study
O
ver the last 11 months, we have
covered in some detail the contents
of the general scope document
(GSD). For the final segment of the series, we
will report a GSD-related a case study.
The following abbreviated version of an
in-depth case study was chosen from the
hundreds of root cause failure analysis (RCFA)
studies that I have performed throughout
my career.
It should be noted, while this study does
not address every segment of the GSD, it
does make a good case for the importance
of a GSD.
OVERVIEW
I was contracted to perform an RCFA by a
motor OEM after multiple motor failures
were reported. All reference to dates, end
user, engineering firms, distributors, motor
shops as well as motor, pump and drive
OEMs have been removed.
Placing blame on any specific party is
not the intention of the case study. The
purpose is to emphasize the importance of
developing a comprehensive GSD to mitigate specifically including:
or minimize the issues identified.
HISTORY
The pumping system was a new installation
and consisted of three vertical turbine-
type pumps and was controlled by variable
frequency drives (VFDs). The pumps were
direct coupled to 500-horsepower (hp), 460-
volt (V), 1,785-rpm motors.
Upon commissioning the system, three
pumps’ motors operated 14 hours each.
During initial commercial operation, two
motors failed during ramp up.
The third motor ran for an additional two
hours, then failed. At that point, the motors
were hipped to an OEM-approved motor
shop and repaired under OEM warranty.
Rate of change (dV/dt) filters were installed component is typically focused on as the
after the three initial motor failures.
e-b o ok | Pumps & System s
The motor OEM secured a third party to
perform testing, measuring and calculating
the dV/dt, harmonics and showing the
waveforms.
This was performed after installation of
said filters.
Aforementioned testing indicated, per the
National Electrical Manufacturers Association
(NEMA), both voltage spikes less than
1,600 V and dV/dt less than 5,200 volts per
microsecond (V/µs).
All measurements were found to be
within the specification of the motor
manufacturer as defined on the OEM
engineering data sheet.
Rewound motors were reinstalled and
functioned trouble-free throughout the
summer. During late summer, the third motor
failed for a second time. The failed motor
was then removed and shipped to the same
motor shop for disassembly and inspection.
At this point, I was contracted by the motor
OEM to determine the root cause of failure.
A site visit was arranged to meet with
all parties involved with the project,
• end user engineering staff
• engineering firm for project
• engineering firm contracted by end user
• installation contractor
• pump distributor that supplied pumps,
motors, drives, etc.
• motor OEM
The purpose of the site visit was to gain a
clear understanding of the overall situation,
as well as to identify the expectations and
deliverables of the end user.
The meeting was tense, to say the least,
with finger-pointing and blame being
directed at the motor OEM.
Based on my experience, this was to be
expected. With equipment failures, the failed
root cause.
19 How to Create a Comprehensive General Scope Document
continued
case study
I requested and received the following
information from said parties:
• system specifications from the
engineering firm
• pump engineering data
• general arrangement (GA) drawings
• drive specifications
• dV/dt filter data
• motor engineering data sheets
• copy of bid submittals from distributor
to the motor OEM
ANALYSIS
The customer did not provide a GSD to
the engineering firms or installation/
construction company.
MOTOR NO. 3 SECOND FAILURE
The motor was subcontracted by the shop
that performed three repairs/rewinds to a
local shop (without the knowledge of the
motor OEM that was covering the warranty).
At my recommendation, the failed motor was load reactors (same as line), dV/dt or output
removed from the local shop and shipped
to an OEM-approved facility for thorough
inspection and repair.
Findings: The motor was not rewound to
OEM specification and did not meet NEMA
MG1 part 31 standards.
PROJECT SPECIFICATION
(ENGINEERING FIRM)
Findings:
• did not specify in bid package the
distance between motors and the VFD
(420 feet)
• did not require dV/dt testing or suggest (OAC)—a section of the GSD—alone would
filter (due to distance motors to drives) have prevented all the issues as identified in
• did not specify stray current protection this case study.
3 ORIGINAL MOTOR FAILURES
Findings: The motors failed due to
reflective wave (excessive cable length
without filters). The motor OEM was not
e-b o ok | Pumps & System s
informed of service (VFD) or output cable
length (420 feet).
VARIABLE FREQUENCY DRIVES
The drive OEM told the distributor
(equipment supplier) that filters were
not required with their drives. Therefore,
the distributor did not quote the
necessary filters.
Findings: The maximum output cable
length between the VFD and the motor
is dependent on the VFD and motor
manufacturers. The VFD manual should be
checked for recommendations. As a rule of
thumb for unfiltered outputs, lead lengths
of over 30 meters (100 feet) may present
concerns to be addressed with the VFD and/
“A successful
or motor manual and/or manufacturers.
project
Longer lead lengths can also be achieved begins with a
with the proper output filter (check the VFD well-prepared,
and/or motor manual). Output filters can be detailed GSD
developed
sine filters. as a team.”
CASE STUDY SUMMARY
I’m sure you’re wondering at this point how
the project played out. Well, the motor
OEM took the hit and paid for the repair
of all three motors twice since the rewinds
were not performed to OEM specification.
Everyone else involved got off scot-free. The
end user lost some production as a result of
the failures.
Had the end user prepared a GSD, all
issues would have been avoided. A detailed,
well-prepared owners’ acceptance criteria
A successful project begins with a well-
prepared, detailed GSD developed as a
team—the team being comprised of all
parties with a vested interest in the project.