Engineering Term

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.

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Schedule A is UOP Company ( Universal Oil Products ) trade name for Basic Engineering deliverables. If you order Basic Engineering work from UOP you will receive Schedule A books as a result. If you are interested in general content of a Schedule A books, it can be provided.

Front End Engineering & Design (FEED) has been introduced by DuPont company in order to increase the success rate of major engineering projects, and this practice was recognized and universally accepted by other companies.