Basic design and FEED (Front End Engineering Design) are the steps of the process in which concepts are defined and the relevant technical specifications are issued. This will allow overcoming any critical item or potential showstopper.
The output of the design is normally used to run an EPC (Engineering Procurement and Construction) and/or a BOOT (Build Own Operate Transfer) tender. It is therefore very important that the documents issued are detailed enough to ensure that the solutions offered by EPC bidders are technically consistent (aligned) and fully satisfy your needs.
Nonetheless, FEED will not be detailed to the point that proprietary solutions are recommended where not strictly necessary. This will ensure that an open and successful bidding phase can be implemented, maximizing the value captured by the company and the competition among bidders.
FEEDs are typically carried out by a multi-disciplinary team, in order to ensure that all project aspects refer to the FEED. The purpose is to make the resulting solution relevant to good commercial performance, smooth operations, and is characterized by cost-to-benefit efficiency and the satisfaction of customers’ requirements and expectations.
FEED typically develops the option selected during previous design stages (concept selection & feasibility study) and allows carrying out a more accurate cost estimation, which is necessary to allocate the budget for the EPC phase and to come to a final investment decision (FID).
Project schedule and vendor lists are refined during FEED.
Once the FEED phase is accomplished, we can recommend contractual strategy for the subsequent project implementation phases