What is FEED?

Following the Conceptual Study or pre-FEED stage (also known as the "Select") is the “Define” which
is often referred to as Basic Engineering. Basic Engineering will be finished with the FEED Package as
a result, and it will be based on the pre-FEED deliverables (mostly the Basis of Design and FEED
Scope of Work). The Detailed Engineering, Procurement and Construction (EPC) package, which is
frequently handled by a single EPC contractor, are the three phases of the "Execution" phase that are
the basis for contract bidding.

Even though the FEED stage typically only accounts for 2% of the total project execution costs, it can,
when done well, save up to 30% on subsequent design and execution costs. It's a good idea to add
the operations and construction teams early on.

The FEED stage cost estimate accuracy ranges from +/- 15 to 20% (CAPEX). Depending on the type of
EPC contract and the quantity of detailing required to deem the project ready for Detailed Design,
engineering is typically 12 to 20% complete by the end of this stage.

A final investment decision (FID) must be reached for the engineering project by the end of the FEED
stage. There is still a chance to terminate the project at this phase if it turns out to not be
economically feasible or cost-effective after all, even if the project's scope and cost are clearly
understood, and only a small portion of the overall budget has been spent.

This contains a wide variety of deliverables and forms the basis for EPC contract bidding. Typical FEED
stage deliverables include;

- Operating philosophy

- Process safety studies

- Specifications and standards

- Final Plot Plan

- P&ID drawings

- Equipment Lists & Specifications

- Line Lists

- Mechanical Data Sheet

- Instrument Data Sheet

- Electrical Data Sheets

- Instrument Index
- Cause & Effect Diagrams

- Material Selection Diagram

- Start of BOM list (Bill of Materials)

Generally FEED verification is performed during the start of Detailed Engineering