FEL 1 (CONCEPTUAL PHASE) DELIVERABLES

Strategic Business Assessment

Key Technology Selected & Risk Identified

Market Assessment For Feed, Products & Capacity

Potential Sites Identified & Under Evaluation

Cost Estimate (+/- 40%)

Preliminary Project Milestone Schedule

Block Flow Diagrams Completed

Process Cases Identified

Critical Long Lead Equipment Identified

VIP Reports
FEL 2 (FEASIBILITY PHASE) DELIVERABLES
Strategic Business Assessment

Project Schedule Level 1

Cost Estimate (+/- 25%)

Overall Project Execution Strategy

Contracting & Purchasing Strategies

Permitting & Regulatory Compliance Plan

Soil Survey & Report

Project Alternatives Analysis

Process Flow Diagrams For Selected Option(s)

Preliminary Utility Flow Diagrams & Balances

Preliminary Equipment List & Equipment Load Sheets

Materials Of Construction

VIP Reports
FEL 3 (DEFINITION PHASE) DELIVERABLES
Strategic Business Assessment

Detailed EPC Project Master Schedule

Completed Environment Permit Submittal

Project Plan / Project Execution Plan

• Cash Flow Plan for EPC Phase

• Training, Commissioning & Startup Plans

• Contracting Plans

• Materials Management Plan

• Safety Process & Quality Management Plan

Cost Estimate (+/-10%)

Finalized Utility Flow Diagrams & Balances

FEL 3 (DEFINITION PHASE) DELIVERABLES (CONT’D)

P&ID’s - Issue IPL

Plot plans & Critical Equipment Layouts
Equipment List & Equipment Datasheets
Single-line Electrical Diagrams
Control System Summary & Control Room Layout
Materials of Construction
VIP Reports
Process Hazards Analysis
FEL BENCHMARKING

METHODOLOGY

• Facilitated Project Definition Rating Index

(PDRI)

COMMERCIALLY AVAILABLE 3rd PARTY

METHODOLOGY

• Independent Project Analysis, Inc. (IPA) - FEL

Index
PROJECT DEFINITION RATING INDEX (PDRI)
Developed By Construction Industry Institute (CII)

Non-proprietary, Facilitated Workshop Performed In-house At The Beginning Of The Job And At The End Of
Each FEL Phase Beginning To Assess The Level Of Project Definition

Lower PDRI Scores Indicate

• A Better Defined Project Because

• The Project Is In Later FEL Phases (Later FEL 2 And FEL 3)

• More Key Elements Of The Project Have Been Adequately Defined

• Higher Probability Of Project Success In Terms Of Cost, Schedule And Change Orders

Higher PDRI Scores Indicate

• A Lesser Defined Project Because

• The Project Is In Earlier FEL Phases (FEL 1 And Early FEL 2)

• Fewer Key Elements Of The Project Have Been Adequately Defined

• Lower Probability Of Project Success In Terms Of Cost, Schedule And Change Orders Without Further Definition
Improvement
WHAT IS PDRI?

A Simple And Easy-to-use Indicator Of The Degree Of Scope Development On Industrial

Projects

It Contains A Comprehensive Checklist Of 70 Scope Definition Elements With 1,000 Total

Possible Points

A Score Of 200 Or Less Indicates A High Probability Of A Successful (Best Practical) Project

No Numerical Correlation Exists Between The PDRI Score And IPA’s FEL Index Score

Developed Based On Data Obtained From 40 Capital Projects

DEVELOPMENT OF PDRI
PERFORMANCE PARAMETERS

PERFORMANCE SCORE < 200 SCORE > 200 Difference

PARAMETER

Cost
- 5% + 14% 19%

Schedule
- 1% + 12% 13%

Change Orders
+ 2% + 8% 6%
IPA’s FEL INDEX

Proprietary Methodology
Assessment Performed by outside Consultant from IPA
Generally a 2-day exercise prior to decision gate
<4.75 at end of FEL 3 = “Best Practical” FEL Index Score
IPA’s Target FEL Index Scores:
• End of CONCEPTUAL PHASE: 7 - 10
• End of FEASIBILITY PHASE: 6-7
• End of DEFINITION PHASE: 4.75 - 5
IPA’S FEL INDEX SUMMARY
BEST
PARAMETER
PRACTICAL
Estimate Basis Detailed equip. list, full
vendor quotes
User Input Operations deeply involved
with plant design and
Layout Well understood.
Environmental Recommendations from
Health And Safety health/safety reviews
implemented.
Reviews
Permits All actions implemented to
achieve issue of permits.
May not yet be available.
Plot Plans Based on equipment
dimensions and access
req.
Detailed plot plans, P&IDs
available.
Project Execution Contracting strategy,
Plan project schedule and
participating roles set.
Detailed schedule
complete.
Soils Data Borings complete and
results known for exact site
locations where equip. will
be placed
GOOD FAIR POOR UNDEFINED
Detailed equip. list Factoring, some Factoring only, no Factoring based on a
some vendor quotes. prelim. Quotes prelim. Quotes. similar plant.
Some plant input to Plant reviews Limited plant input to No input from plant
design and layout. conceptual design. design. operations.
Actions formulated to Preliminary Needs not yet No site-specific
meet health/safety assessment of needs identified. information.
review -reviews pending
recommendations.
Needs well known Most permitting needs Only limited Assumed, permit
and permitting known. information about requirements not yet
process begun. permit requirements. identified.
Primarily based on Preliminary Equipment known but General equipment
equipment assessment of no configuration known but no
dimensions and detailed requirements. established. specifics.
access requirements.
Contracting strategy, No detailed, Only milestones Assume - general
project schedule and coordinated established without milestones only.
participant roles set. schedule. Preliminary detailed achievement
No detailed schedule. assignment of plan.
participant roles.
Sample borings Sample borings Preliminary - sample Assumed from
Initiated at exact site initiated at plant site. borings in general general geotechnical
locations where area but not specific data for the area.
equip. will be placed. site.
CONCLUSIONS

A low FEL Index score from IPA does NOT guarantee highest
profitability – it is an indicator only
Go for better project definition and the PDRI or IPA scores will follow
Focus on the proper level of definition required to support the accuracy
of the project cost estimate
Pay attention to the higher weighted categories that makeup the
definition scores
No direct numerical or statistical correlation exists between PDRI and
IPA scores