front end planning guide

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PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 7, August 30, 2011 Page: 1 FRONT END PLANNING & The Gated Project Delivery System S&B/FB&D Guide to ensure that project scopes of work are well defined prior to the start of project execution PM-FEP-GDLN-001 OBJECTIVE CONSISTENTLY PREDICTABLE PROJECTS

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This is a quick reference guide developed to help S&B and FB&D Project Managers define the Project Scope of work prior to the estimate using the Gate Projoect Delivery System.

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Page 1: FRONT END PLANNING GUIDE

PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 7, August 30, 2011 Page: 1

FRONT END PLANNING & The Gated Project Delivery System

S&B/FB&D Guide to ensure that project scopes of work are well defined prior to the start of project execution

PM-FEP-GDLN-001

OBJECTIVE CONSISTENTLY PREDICTABLE PROJECTS

Page 2: FRONT END PLANNING GUIDE

PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 7, August 30, 2011 Page: 2

TABLE OF CONTENTS Overview of the Front End Planning Process Overview Of The Gated Project Delivery Systems S & B/FB&D Front End Planning Resources: Front End Planning Lessons Learned FEP DELIVERABLES RESPONSIBILITY MATRIX: FEP 1 FEP 2 FEP 3 Estimated TIC Cost to Perform FEP – APPENDIX A Gated Project Delivery Process Key Activities Diagrams for FEP 2 & FEP 3 APPENDIX C1-C4

FRONT END PLANNING & The Gated Project Delivery System

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PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 7, August 30, 2011 Page: 3

25FEP Gated Project Delivery System Small Projects Rev 4, September 2005 J. Fish FB&D

GATED PROJECT DELIVERY SYSTEMGATED PROJECT DELIVERY SYSTEM

FEP 1 FEP 2 FEP 3 EXECUTION OPERATEGATE

2GATE

1GATE

3

Select Projects

with highest potential of

meeting business objectives

Select the preferred

process and technology

options

Business Assessment

Alternatives Selection

Scope Definition

Detailed Engineering & Construction

Start-Up Operate

and Evaluate

Completely Define and Agree on full scope of work

Develop the Plan

Execute the Plan

Detailed Engineering

Procurement

Construction Turnover

Start-Up

Make Adjustments

Achieve name plate capacities

EvaluateFEP 1 Estimate

+50% -50%FEP 2 Estimate

+30% -20%

FEP 3 Estimate

+10% -10%

Deliverables and Business Objective requirements will be reviewed before proceeding to the next gate

Each Gate is a GO/NO GO decision

GATE KEEPER:

Uses business criteria to make go or no-go decision

Decides WHICH potential projects will be executed and priority.

Identify the WRONG project EARLY.

SCOUT‘ING

GATE

0

SCOUTING Estimate

+100% -100%

FRONT END PLANNING (FEP): As a manager at S&B/FB&D you will be expected to fully understand the importance of the Front End Planning process and the associated tools used to ensure that: The scope is defined to ensure predictability in cost, schedule, quality and

business objectives Risks are identified and a risk tolerance is established All high impact risk items have a mitigation plan in place Front End Planning refers to a consistent series of activities used to ensure that a project has a well-defined scope of work. The Construction Industry Institute (CII) and Independent Project Analysis (IPA) have extensive research that proves projects with a high degree of Front End Planning produce projects that are more predictable in the area of cost, schedule, and the ability to achieve the business objectives. Research data illustrates that projects that are not well defined prior to starting detailed engineering experience more change orders that result in cost escalations of up to 50% and an extension in schedule of up to 46%. We cannot afford to skip the proven Front End Planning work processes.

Front End Planning includes putting together the project team, selecting technology, developing project alternatives, selecting project site, and developing project scope.

Other organizations use the following terms as synonymous with Front End Planning: Front End Loading (FEL), feasibility analysis, programming, and conceptual planning. Many of the owner organizations have developed a Gated Process as a mechanism to control the amount of expenditures committed to defining the scope of a project. The Gated Process is a structured series of activities that will help them select the RIGHT PROJECT prior to committing full funding. The owner will review a set of deliverables for each gate to ensure

CII Definition of FRONT END PLANNING (FEP): The process of developing sufficient strategic information with which owners can address risk and decide to commit resources to maximize the chance for a successful project.

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PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 7, August 30, 2011 Page: 4

14FEP Gated Project Delivery System Small Projects Rev 4, September 2005 J. Fish FB&D

Ability to Influence Final CostAbility to Influence Final Cost Over Project LifeOver Project Life

StartDate

NeedDate

Detailed Engineering

Procurement

Construction

Start-Up

1

Ability to

InfluenceCost

High

Low

100%

Time

CostInfluence

CostExpenditureFEP 1,2 & 3 is

the Time to Make a Difference!!!

2

3

EXECUTEDefine

that the project is still of value to the business unit. The Gated Process provides an opportunity for the owner to evaluate a project in the early stages to ensure it is still viable and on track. If it appears that the project will not meet the business requirements, the owner may decide to kill the project at any one of the gates. This ensures that the owner does not commit valuable resources on the WRONG projects. Most owners have more projects in their queue than they can possibly fund or staff. The Gated Project Delivery system is used as a filter to weed out the WRONG projects early. That enables them to focus their resources to identify and execute the RIGHT PROJECTS. The project team must present a defined set of deliverables to a decision maker (or Gate Keeper) at each Gate in the process. If the project is still on track, the owner will approve the team to prepare the next set of deliverables. If the project is approved at Gate 3, then the project will be allowed to proceed with full engineering, procurement, and construction execution. Industry research has proven that the ability to improve a project rapidly diminishes once the scope has been defined and detailed engineering has begun. This is illustrated by the CII Cost-Influence Curve diagram below. Once detailed engineering and procurement have begun it is very difficult to change the fate of a project. Funds are being spent at an accelerating rate based on decisions defined in the Front End Planning Process. Any potential savings or good ideas must be developed in FEP to maximum value and chances of success.

S&B/FB&D has been a leader in the FEP process by participating as team members for a series of CII FEP research teams. We started in the early nineties with what was then call Pre-Project Planning (this term was replaced with FEP in 2004). Mr. Slaughter sponsored the research that developed the Project Definition Rating Index (PDRI) and the Team

Alignment Thermometer. The PDRI is the industry tool of choice to evaluate the completeness of definition of any project. Use of the

PDRI is a S&B/FB&D Best Practice. S&B/FB&D has continued to be active in CII research to assist in the refinement and development of FEP process and tools. Prior to 2000, many owners would execute the Gated Process to develop the scope of work internally. As they downsized, the owners began to outsource some of the FEP to engineering contractors. At first they turned FEP 3 over the contractors. As they continued

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PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 7, August 30, 2011 Page: 5

PDRI 30PDRI Overview & Intro J.Fish Rev 23, March 2007

FEP and the PDRIFEP and the PDRI

0 Feasibility 1 Concept 2 DetailedScope

Design and Construction

3

1 22i

3

Potential PDRI Application PointsAlign team w/Objectives

Communicate drivers between

- Business/Sponsors/Contractor

Identify Stakeholder expectations

Typical Score: 600-800

Align objectives w/stakeholder needs

Identify high priority deliverables

Eliminate late surprises

Facilitate communications across team

Typical Score: 450-600

OPTIONAL: How are we doing?

Alignment check: Objectives vs Needs

Resources deployed for highest benefit

Plan the remaining activities

Typical Score: 300-450

Final review to validate completeness of definition.

Definitely should be done on ALL projects regardless of size or type.

Typical Score: 180-220

to downsize, the owners enlisted contractors to assist in FEP 2 process to investigate and recommend alternatives. Eventually, some owners had to outsource all of the FEP. In most cases, S&B/FB&D will utilize the Owner’s Gated Process. For owners that do not have their own process, FB&D has developed its version of the Gated Process along with a series of Best Practices that help the project team identify potential risk areas and define the scope of work to ensure project success. See Appendix B for the S&B/fB&D GATED PROJECT MANAGEMENT PROCESS. S&B may receive a project in any stage. The important question for any project manager is to determine what stage the project is in once the owner hands it over to us. We can be asked to execute any of the FEP stages, Detailed Engineering, or maybe just the construction phase. Regardless of the stage, it is an S&B/FB&D standard practice to conduct a PDRI evaluation on every project. The client may indicate that the project has just completed a specific phase. That does not automatically mean that the project has been properly defined for that phase. An independent PDRI evaluation will validate the completeness of scope and identify any potential areas of weakness or risk. S&B has a cadre of trained PDRI facilitators who are available to assist with this evaluation.

Use this slide as a guide on when to utilize the PDRI on a specific project. PDRI should be completed as a part of the final deliverable package for each phase along with the Action Items to minimize risks.

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PDRI 41PDRI Overview & Intro J.Fish Rev 23, March 2007

TARGET PDRI SCORES

ScoreCategory

FeasibilityEnd of FEP 2

50% FEP 3

End ofFEP 3

Decision200 95 60

EndDefinition

320 190 100

I. Basis of

II. Front

III. ExecutionApproach

78 65 40

TOTAL 600-500 450-300 220-180

Below is a table of expected scores to be achieved for each phase. Notice that the scores go down as the project becomes more and more defined. A low score is better when using the PDRI. The lower score indicates fewer unkowns and risk factors. CII research validates that projects with a score in the range of 180 to 220 at the end of FEP3 (before the start of detailed design) have a much greater record of being successful. Please note the differentials in cost and schedule. Latest data from Independent Project Analysis (IPA) has demonstrated that predicting and completing projects on schedule is the real challenge even for a well-defined project. Poorly defined projects are as much as 46% behind schedule. There is a PDRI for Industrial Projects and a separate one for Commercial Buildings. It is not uncommon to use BOTH on the same project. S&B has the manuals online. In addition we have developed an S&B specific spreadsheet that can be used by a trained facilitator to capture the team evaluation of the FEP at various points in the planning process. Appendix C1-C4 provides a Graphic that can be used as a guide for Project Managers to assess which activities should be addressed during FEP 2 & FEP 3. The Project Team will decide which items are most important, but the relative steps remain the same from project to project. The latest version of each is available for download at:

http://docushare2.sbec.com/dscgi/ds.py/Get/File-45962

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OVERVIEW OF THE GATED PROJECT DELIVERY SYSTEMS - GATE DEFINITIONS Extracted from the CII FRONT END PLANNING TOOLKIT Note: IPA uses the FEL Acronym for Front End Loading CII uses the FEP Acronym for Front End Planning

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S&B/FB&D FRONT END PLANNING RESOURCES: The S&B Project Management Manual has a great deal of information that is useful and most cases mandated for Front End Planning of a project. PM-107 – Early Planning Guide PM-106 – Contract Review PM-110 – Project Execution Plan PM-115 – Client and S&B Responsibilities PM-116 – Division of Responsibilities Matrix PM-130 – Project Instructions and Procedures Manual PM-135 – General Project questionnaire PM-145 – Basic Construction Questionnaire In addition, the Project Manager should visit the S&B/FB&D Best Practices page on the S&B Portal to review which Best Practices would benefit this project. http://ipims.sbec.com/portal/page?_pageid=313,1&_dad=portal&_schema=PORTAL Go to the Project Phase Chart to see recommendations on which phase can benefit from each Best Practice. The Project Manager can click on each Best Practice to gain access to all the resources required to support the successful implementation of the critical few for that project.

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ADDITIONAL FRONT END PLANNING RESOURCES: We have embedded these two resources into this document. The Project Management Team should extract these guides and use them to monitor the progress of the Front End Planning Effort.

FEP DELIVERABLE RESPONSIBILITY MATRIX

FEL Responsibility Check List I-III Hiram FEP DELIVERABLE & ESTIMATING FORM

HO felestimate Deliverables Based.xl LISTING OF FRONT END PLANNING RESOURCES FROM BEST PRACTICE PAGE

FEL Deliverables Checklist Project Definition Rating Index

PMP Overview FEL Overview Process Information Flow Diagram PM-113 S&B Project Management Process and FEL Guidelines PM-107 Project Early Planning Guideline CII Education Module #39-21, Pre-Project Planning

CII Publication P 039-1, Pre-Project Planning: Beginning a Project the Right Way CII Publication SP 039-2, , Pre-Project Planning Handbook CII Publication RS 113-1, Pre-Project Planning Tools: PDRI and Alignment CII Publication SD-45, Owner's Project Planning: The Process Approach CII Publication SD-94, Modeling Pre-Project Planning for the Construction of Capital Facilities CII Publication SD-105, Analysis of Pre-Project Planning Effort and Success Variables for Capital Facility Projects Front End Planning of Renovation and Revamp Projects Resource 242-2

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FRONT END PLANNING LESSONS LEARNED -

ENGINEERING: P&ID’s: Develop a P&ID Management Plan Define the Issues/Reviewers/Approvers including method & duration of Approval Process Define roles and Responsibilities to ensure the right information is on each Issue. Identify at what point team will start tracking changes As a minimum, perform a Preliminary Hazards Review in FEP Manage the content – firm or not so firm. Establish a formal Change Management System After Approval Issue. ENGINEERED EQUIPMENT MANAGEMENT Define the steps and approval requirements to secure firm bids Identify handoffs, approval requirements and durations for each step Look for ways to streamline the process Define which items require Firm Pricing and which can be historical or Phone Quotes Manage the process for development of Data Sheets Process and Mechanical Process and Instrumentation – Relief Devices Manage the production of the Instrument Index WBS: Develop a Work Breakdown Structure with a focus on producing construction deliverables. WBS to be in alignment with the Contracting Strategy

Construct the estimate to align with the WBS If the Estimate is NOT broken into WBS, it is almost impossible to status progress in

Engineering. Ensure that a construction representative has input and buy-in Engineering to provide deliverable packages in alignment with packages. Prioritize Packages and establish a sequence for construction Align the engineering, procurement, and fabrication to support construction plan INFORMATION MANAGEMENT PLAN: Identify the Client Turnover Requirements at the end of the project. Develop the Distribution Matrix using RACI format for all critical Issues Validate all deliverables and As Built Requirements 3D MODEL in FEP Utilize a 3D Model on significant projects to assist the client with visualization. Establish Model Review points to pin down Equipment Arrangements Accessibility, Maintenance Requirements, Operational Requirements Model all major structures, equipment, major piping systems and control stations. Establish point of Equipment Arrangement Approval – As Basis of Estimate – No Changes PDRI: Minimum – PDRI session at end of FEP2 & FEP3 Use a trained facilitator Project Manager to Listen to team members discuss the project. Very little talking on the part of the PM

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PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 7, August 30, 2011 Page: 11

Objective is to gain an understanding of how and what the team members are doing. PM should assist the facilitator in asking probing questions. PM to use the PDRI as a checklist or guide to identify critical issues. Line List management –

Get Process Data loaded early to support Stress Analysis Identification and Strategy (Stress can be 30% of Mechanical Budget) Identify Insulation Requirements, Sloped Lines, Special Conditions Define Iso Requirements – All or specific line sizes Establish strategy for Rack Run Piping – Fab/Construction Issues Define any Interfaces for lines that are shared by two or more firms. (Who owns the line – Hydraulics, stress, Isos, Materials, etc.)

Tie-In Management Plan Develop listing of Tie-Ins and plan to secure operations location approval Define the Tie-In approval requirements, forms, signatures, responsibilities Define contents of the Tie-In Package Define Tagging Requirements in the field. Stress Analysis Strategy Meeting Conduct meeting with Piping, Stress, and Structural Identify Critical Stress Requirements/Problems that may require action in FEP Define Requirements for Loops and Major Anchor Bents. Specification Management Establish the specifications to be used as a Basis of Estimate. Do NOT upgrade to the latest specification AFTER Bids. Freeze the Specs for THAT PROJECT.

Post or formally issue all specifications on a Document Management System to ensure everyone is using the appropriate version or revision. Ensure these specifications get formally issued to all stakeholders Vendors, Owner Inspection, Owner Specialists, Fabricators, etc. Establish a WAIVER system for items that have been approved to be in noncompliance with the published specifications. The Design or Purchase Documents must reference the appropriate Waiver Number.

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EXECUTION PLANNING: PROCUREMENT AND MATERIALS:

Develop a Procurement Strategy early in FEP 2 – Consider PEpC opportunities Expand to a detailed Procurement Plan in Early to Mid FEP3 Develop a Procurement Responsibilities Matrix – Who will provide what. Determine which entity will Define, Inquire, Bid Tab, Prepare Purchase Requisitions, Place the Order, Expedite, Receive and Manage Vendor Data, Pay Invoices, and Process Recievers.

Source Inspection Plan

Be sure to include Source Inspection Requirements into your Front End Estimate Identify Items that can benefit from a Pre-Fabrication Meeting. Identify the level of Inspection Required Identify the potential costs in time and travel for each item. Include this information into the Commercial Bid Evaluation. Take past performance evaluations into consideration

o Timely Delivery, Timely Vendor Data, Quality, Responsiveness CONTRACTING STRATEGY

Develop the Preferred Contracting Strategy early in FEP 2 Validate the Contracting Strategy via an INTERACTIVE PLANNING SESSION Mid FEP3 Ensure that Engineering understands the deliverables and degree of information required to support a Contract Bid and Award including Fabrication Orders. Avoid lump sum contracts in an operating environment

FINANCIAL: Establish payment schedules Incentives must be in alignment with project objectives and drivers. Incentives must drive the desired behavior Define the Metrics to be used to qualify for incentives.

SUPPORTING PROCESSES: ALIGN, ALGIN, ALIGN, & ALIGN AGAIN Aligning ALL stakeholders and keeping them aligned is a real challenge. Use Team Meetings, Team Building, PDRI Sessions, Risk Identification, etc to

reinforce the importance of alignment and Assess alignment periodically to see you the team require realignment. Focus on Project and Business Objectives, Drivers, and Requirements for a successful

project. Ensure that everyone clearly understands the Driver: Cost, Schedule, Quality or

whatever Kickoff Meeting

Conduct a formal Kick Off Meeting FEP to define expectations, roles, responsibilities Develop a Project Specific Deliverables List to support the level of definition required.

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Constructability:

Bring in a Construction Rep early to help with WBS and major philosophies for each discipline. Use the model for scenario planning Use the model for constructability studies. For Revamp ensure designs are INSTALLABLE in existing confines (i.e. crowded piperack) System Turnover: Identify System Turnover Requirements in FEP Primarily an owner activity Engineering can identify most of the systems to assist the owner Owner will identify the sequence of turnover and required dates to support commissioning. Commissioning Plan needs to be in place. CII IR-122-2 Planning For Startup is a great Reference and Guide. Risk Identification and Mitigation Cost Risk Analysis – what can go bad with negative impact on cost? Schedule Risk Analysis – what can go wrong with negative impact to schedule? Risk or Threat Analysis – What are the events that could negatively impact the project? Use a Risk Register Conduct early in FEP2 Continue to Conduct and Revisit through detailed engineering. Identify new threats Review Mitigation of existing threats

Interactive Planning Use to validate the project execution plan Including Contracting and Procurement Strategy Conduct approximately midway FEP3. Start with the end in mind and work backwards. Do not start with a blank wall – use a milestone schedule as a starter set and modify. Do not schedule in detail until AFTER the Interactive Planning is complete.

Interface Management Plan – Use on Collaborative Engineering/Construction projects Develop a strong interface management plan Clearly denote and define all interface points Identify ownership Define the Rules of Engagement for each interface Define the difference between a TIE-IN Point and an Interface Point Nuclear uses TERMINAL POINTS to define controlling authority Owner Specialist Interface Plan Develop a plan to define the relationship between engineering contractors and owner SME’s.

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PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 7, August 30, 2011 Page: 14

What approval points do they require – Data Sheets, P&ID’s, Vendor Data, Drawing Reviews Project Communications Plan:

Identify how all communications will be documented, distributed and stored for easy access and retrieval. Things to consider: Actions Items Decision Log Reporting Requirements – Content, Degree, Timing, etc. How to manage Owner Approvals

Management of Change Plan Define how the team will manage Requests for Changes Define the work flow for approvals Define, Agree, and Align on what constitutes a Change to the Scope of work. Contingency Management Plan – Buckets and drawdown plan.

NAGATIVE LESSONS LEARNED GATED PROCESS: DELAYS: Often the delay to get approval to proceed to the next phase – especially detailed engineering – can result in havoc on the contractor side.

Bid pricing expires resulting in the need to REBID or as a minimum REFRESH Have to reassign critical design team members to other projects to keep them billable. Purchasing Plan starts to fall apart – delays receipt of vendor data – resulting in work

arounds. PAPER CHASE: Some Approval Boards demand a tabbed book with all the detailed information from FEP in formal written format. Once a format is established and accepted, the teams to tend to copy from one project to another changing a few details. Projects are approved on the massive paper rather than a well defined execution plan. This is especially true of Project Execution Plans. Teams tend to take an Existing Plan, modify a few words, and expect to get it approved since the last one was approved. NUMBERS GAME: Some management teams mandate that a project of more than a certain score will not be approved. That leads to playing the score game.

Management should focus on the important issues, concerns, and action items. The score is not nearly as critical as the teams understanding of the issues that are well

defined, risks identified, and mitigation plans are in place.

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SPECIAL SITUATIONS:

Revamp Projects: Safety issues need to be identified in FEP Kick off Meeting Mitigation plans formulated early in FEP and incorporated into all design efforts. Existing site conditions (including utilities) need to be fully defined. Coordination with Operations and Maintenance Teams is Paramount. Projects that will executed as a part of a Maintenance Turn Around Owner and Contractor PM to Coordinate with other projects and the Turnaround Planning Team. Move as much work into PRE and POST turnaround as possible. All deliverables to the Turn Around Team a minimum of 3 months prior to Turn Around. All Materials for the Turn Around to be on site 60 days prior to Turn Around. COLLABORATIVE ENGINEERING PROJECTS – Multiple Engineering contractors Interface Management System must be in place Roles, Responsibilities, and Division of Work Matrix must agreed upon. Communications and Information Exchanges identified. Establish ONE COMMON Document and Data System if possible for Owner access. Agree on Versions of software to be used that must be combined. Conduct an Expectations workshop in the Teambuilding. Check Alignment on critical issues frequently Shared Specifications

Establish the specifications to be used on the project. One Company will manage/control the publication of all specifications Any revisions/changes must be issued to all contractors and stakeholders. Change management must be very careful. One company to provide the 3D CAD Specifications to others to ensure alignment

PROJECTS TO BE EXECUTED DURING A TURN AROUND OR SHUT DOWN Must coordinate with Owner Turn Around Planning Group as much as possible. Move as much work in PRE and POST Turn Around Clearly identify the work to be performed in each phase: Pre, Turn Around, Post Clearly Identify the Demo work for each phase also. Identify any other projects by anyone who will be going in the same time. Use Lasers to verify critical piping fabrication in the shop BEFORE it gets to the jobsite. All pipe must fit – no time to modify during the Turn Around Use Lasers to verify piping connection points in the COLD position to ensure pipe will fit. Use Lasers to verify anchor bolt locations for equipment setting.

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Front-End Loading Reponsibility MatrixProject E-1234 Project TitleBusiness Assessment Phase (FEL-1)

The below activities and deliverable are the major item, each project will vary in requirments

Owner S&B Others

BUSINESS MANAGEMENT1 Project Premise Document

Develop Project Goals & ObjectivesDevelop Project PremisesIdentify and Evaluate Alternative Projects

2 Strategic Business AssessmentEconomic and Risk AnalysisFinancial StrategyFEL Funding Strategy

PROJECT MANAGEMENT1 Order of Magnitude Estimate(s) (Class V)

Estimate Premise, Assumptions and Checklist

2 Phase II Scope of WorkIdentify Deliverables for Phase II

3 List of Best Practices for ProjectIdentify Best Practices for Phase II

4 Strategic Schedule (milestones)Critical Long lead Equipment ListKey Unit Turnaround DatesBusiness Schedule requirements

5 Project Execution StrategyIdentify technology licensing plan / strategyIdentify Permitting & Regulatory RequirementsFormulate Ideas for Contracting StrategyOutline Safety and Industrial Hygiene Requirements

6 Phase II Budget Request and ScheduleResource Plan (owner and FEL contractor)Resource requirements from location/plant

OVERALL DESIGN AND TECHNICAL BASIS1 Technology Basis

Technology Survey / EvaluationProcess Block Flow Diagram(s)Preliminary CapacityHazards Evaluation

2 Site SelectionEstablish Site Selection CriteriaSite VisitsRemediation Requirements

3 Offsite RequirementsAvailability of Utilities

Activity / DeliverableReq'd (Y/N)

ResponsibilityComments

LEGENDP = Provide or Prepare R = Review A = Approve S = Support 2/16/2009 FEL Responsibility Matrix, Page 1 of 7

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Front-End Loading Reponsibility MatrixProject E-1234 Project TitleProject Selection Phase (FEL-2)

The below activities and deliverable are the major item, each project will vary in requirments

Owner S&B Others

BUSINESS MANAGEMENT1 Project Premise Document

Updated Project Goals & ObjectivesUpdated Project PremisesAlternative Approaches Cost / Risk/ Benefit Tradeoff Analysis"Preferred" Alternative(s) Selected

2 Strategic Business AssessmentUpdated Economic and Risk AnalysisUpdated Financial StrategyUpdated FEL Funding Strategy

3 Basic Engineering Contract AwardPreliminary Engineering Contract LanguagePerformance Guarantees, Warrantees, Test and Standards

PROJECT MANAGEMENT1 Class III Estimate(s) (+25% / -15%)

Estimate Premise, Assumptions and ChecklistRisk / Contingency Analysis

2 Phase III Scope of Work DocumentIdentify Deliverables for Phase IIISummary Level Scope DefinitionPreliminary Licensing PlanControl System / Control Room StrategyPower StrategyBuilding RequirementsOperations and Maintenance InputConstructability Input

3 List of Best Practices for ProjectList of Best Practices implemented for Phase IIPhase III Best Practices Selection

4 Level I Milestone ScheduleIdentify Long Lead Equipment ItemsPermitting and Regulatory Compliance DatesKey Unit Turnaround DatesBusiness Schedule requirements

5 Preliminary Project Execution PlanIdentify Technology Licensing Plan / StrategyIdentify Permitting & Regulatory RequirementsUpdated Owner Contracting StrategyOutline Safety and Industrial Hygiene RequirementsTechnical Assurance and QA/QC Strategy

6 Phase III Budget Request and ScheduleResource Plan (owner and FEL contractor)Resource requirements from location/plant

7 Project Coordination Procedures

8 Permit ApplicationsDetermine Permitting and Regulatory Compliance RequirementsPrepare Permit Applications

9 Scope Definition Benchmarking (PDRI)Phase II PDRI Assessment

OVERALL DESIGN AND TECHNICAL BASIS1 Process Description

Review Capacity / Yields / Purities / Product SpecPilot Plant Data (if required)

Activity / DeliverableReq'd (Y/N)

ResponsibilityComments

LEGENDP = Provide or Prepare R = Review A = Approve S = Support 2/16/2009 FEL Responsibility Matrix, Page 2 of 7

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Owner S&B OthersActivity / Deliverable

Req'd (Y/N)

ResponsibilityComments

Plant Design PhilosophyPreliminary Process & Equipment Design ParametersProcess SimulationsConceptual StudiesRaw Material Requirements / CompositionFeed and Raw Material Suppliers VerifiedSpecial Considerations IdentifiedProcess Technology Selection/EvaluationProcess Licenser(s) Package(s) - (if required)

2 Preliminary PFD’sPreliminary Heat & Material BalancePhysical Properties (Process)

3 Preliminary P&IDsPreliminary Material Requirements (Metallurgy, etc.)Preliminary Equipment List (with approximate sizing)

4 Conceptual Plot Plan

5 Conceptual Arrangement Drawing(s)

6 Preliminary Hazards Evaluation

7 Site InformationGeneral Location and Site ConditionsEnvironmental RequirementsWaste Disposal / Treatment Viability ConfirmedUtility & OSBL RequirementsSite Development/Infrastructure RequirementsTraffic Studies

9 Offsite RequirementsAvailability of Utilities

LEGENDP = Provide or Prepare R = Review A = Approve S = Support 2/16/2009 FEL Responsibility Matrix, Page 3 of 7

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Front-End Loading Reponsibility MatrixProject E-1234 Project TitleScope Definition Phase (FEL-3)

The below activities and deliverable are the major item, each project will vary in requirments

Owner S&B Others

BUSINESS MANAGEMENT1 Final Project Premise

Final Project Goals and Business Objectives

2 Updated Strategic Business AssessmentUpdated Economics and Risk AnalysisFinal Financial Strategy

3 Detailed Engineering/EPC Contract Document(s)Preliminary Contract LanguagePerformance Guarantees, Warrantees, Test and StandardsScope Documents

PROJECT MANAGEMENT1 Class II Estimate (+15% / -10%)

Estimate Premise, Assumptions, and ChecklistRisk / Contingency Analysis

2 Scope of Work DocumentOperations & Maintenance RequirementsProject Specifications, Codes, & Practices IdentifiedTraining, Commissioning, Startup and Performance Testing Requirements

Activity / DeliverableReq'd (Y/N)

ResponsibilityComments

Plant Site conditions

3 Best PracticesDocument and List Phase III Best PracticesEPC Best Practices SelectionConstructability

4 Detailed EPC ScheduleWork Breakdown StructuresSystem Identification and Preliminary Turnover PlanUpdated Long-Lead Delivery ListResource Load ScheduleEngineering and Construction Progress Curves

5 Project Execution PlanFinal Owner Contracting StrategyShutdown PlanDetailed Subcontracting StrategyRemediation RequirementsFacility Siting Plan (Overpressure)

6 EPC Phase Budget Request

7 Project Instructions & Procedures ManualDivision of Responsibilities Matrix

8 Permit Applications Submitted

9 Scope Definition Benchmarking (e.g. – IPA/PDRI)

PROCUREMENT DEFINITION1 Approved Manufacturers & Suppliers List

2 Subcontracting Plan

3 Materials Management Plan

LEGENDP = Provide or Prepare R = Review A = Approve S = Support 2/16/2009 FEL Responsibility Matrix, Page 4 of 7

Page 20: FRONT END PLANNING GUIDE

Owner S&B OthersActivity / Deliverable

Req'd (Y/N)

ResponsibilityComments

4 Procurement Plan

5 Early Release Purchase Orders

6 Source Inspection Plan

PROCESS DEFINITION1 Process Flow Diagrams

Heat & Material BalanceRaw Material Requirements / CompositionDefined Capacities / Yields / Purities, etc.Startup, S/D, Upset and Transitional ConditionsPhysical PropertiesPreliminary Line SizingProcess Studies (as required)

2 P&ID's / UFD’s Issued for DesignUtility Sources with Supply ConditionsSpecial Design RequirementsP&ID Review with Operations & MaintenanceUtility Consumption Table (if required)Heat Tracing & Insulation RequirementsFire Protection & Safety System RequirementsProcess Conditions on Line ListSafety Interlock System DescriptionSpecialty Items Identified

3 Process Specifications for New and/or Modified Equipment

4 Process Specifications for Instruments

5 Battery Limits Interface Tabley

6 Demolition RequirementsDemo P & I D's

7 Environmental RequirementsWaste Disposal/Treatment RequirementsDispersion Analysis (if required)

8 Flare and Relief System RequirementsRelief Valve SizingFlare System Sizing

9 Process Hazards Review (PHA)

MECHANICAL DEFINITION1 Pipe Specifications Issued For Design

2 Valve Specifications Issued For Design

3 Mechanical Data Sheets and Specifications Issue for DesignMetallurgy Requirements Finalized Oil Mist SystemsDeluge Systems

4 Equipment List Issued for DesignEquipment SizedProtective Coatings Specified

5 Specialty Item List Issued for Design

6 Paint / Insulation / Fireproofing Matrix Issued for DesignProtective Coating Requirements (Paint, Insulation, Fireproofing) DefinedMechanical Input to Line List

7 Quotes for Major Equipment

8 Pipe Stress Requirements

LEGENDP = Provide or Prepare R = Review A = Approve S = Support 2/16/2009 FEL Responsibility Matrix, Page 5 of 7

Page 21: FRONT END PLANNING GUIDE

Owner S&B OthersActivity / Deliverable

Req'd (Y/N)

ResponsibilityComments

Pipe Stress Kick-Off Meeting

PIPING DEFINITION 1 Plot Plan Issued for Design

Verify Plant coordinate SystemIdentify Fire Protection Requirements

2 Equipment Arrangement Plans & Elevations Issued for DesignPreliminary Piping StudiesPlant spacing requirementsGas / LEL Monitoring

3 Line List Issued for DesignClearly show heat tracing information

4 Tie-in List Issued for DesignTie-in types DefinedTie-in Locations SelectedTie-in Tags Hung

5 Steam Tracing DefinitionDefine manifold requirements

7 Scope of WorkInterface Definition

8 Interconnecting/Logistics Piping Plan

CIVIL / STRUCTURAL / ARCHITECTURAL DEFINITION1 Obtain Geotechnical Survey

2 Conduct Test TrenchingIdentify Underground InterferencesIdentify Underground Interferences Test trenching methodology (hydraulic, probe, backhoe)Survey inverts and document

3 Grading and Paving PlanDevelop Disposal Plan for Excavated MaterialDefine Tank Diking Requirements

4 Sewer PlanStorm Sewer RequirementsOily Water Sewer RequirementsChemical Sewer Requirements

5 Road Layout

6 Foundation SketchesDefine Location, Sizes, and Types of FoundationsDefine Piling Sizes and Depths

7 Structural Steel SketchesDefine Limits of Fireproofing

8 Building/Shelters Size and DescriptionMaterials RequirementsHVAC Requirements

9 Scope of WorkInterface Definition

INSTRUMENT DEFINITION 1 Instrument Index

Preliminary Control Valve Sizing

2 Demolition Scope Identified

3 Number and Location of New Junction Boxes Preliminary Junction Box Location Plan

4 Instrument Specifications for Special Instruments (Analyzers,

LEGENDP = Provide or Prepare R = Review A = Approve S = Support 2/16/2009 FEL Responsibility Matrix, Page 6 of 7

Page 22: FRONT END PLANNING GUIDE

Owner S&B OthersActivity / Deliverable

Req'd (Y/N)

ResponsibilityComments

Flow Meters, etc.)H/C and/or Toxic Vapors Detection Systems

5 Protective Instrument System Definition (if required)

6 Control System SummaryControl System Philosophy and Key ComponentsPricing for Controls SystemPricing for Programming / Configuration DCS Block DiagramControl Room Layout

7 Scope of WorkInterface DefinitionInstrumentation Execution Plan

Subcontracting StrategyDivision of Responsibility Matrix (EPC)

ELECTRICAL DEFINITION1 Load List

2 Electrical Equipment Data Sheets / Specifications

3 Electrical Equipment List

4 Electrical One-Line Diagrams

5 Area Classification Drawing

6 Cathodic Protection System Description

7 Conduit and Cable ScheduleType and Length of Cables, Conduit, Etc.Type and Length of Cables, Conduit, Etc. Cable Routing Sketches

8 Description of Lighting Requirements

9 Description of Grounding Requirements

10 Preliminary Control Room and Substation Layout(s) Pre-Engineered Electrical Buildings Definition

11 Special Systems DefinitionPA Systems (Gaitronics)Alarm SystemsClosed Circuit Television System

12 Electric Tracing DefinitionEngineering, Materials and Installation Pricing (S/C)

13 Scope of WorkInterface Definition

LEGENDP = Provide or Prepare R = Review A = Approve S = Support 2/16/2009 FEL Responsibility Matrix, Page 7 of 7

Page 23: FRONT END PLANNING GUIDE

PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 1 11-29-08 Page: 16

Front End Planning Phase Cost TIC >$5MM

Industrial projects: 4.2 %Building projects: 1.9 %

Expect DOUBLE for projects <$5 million

2 – 6% TIC >$5MM4 – 9% for < $5MM

APPENDIX A

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PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 1 11-29-08 Page: 17

APP

APPENDIX B

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PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 1 11-29-08 Page: 18

SCOPE DEFINITION PHASE FEP 3FEP 2 PROCESS Alternative Selection

Decision

15%10%Engineering

25-30%of Engineering

John Fish PM-FEP-WFD-005 Single Slide.PPT Rev 20 FEB 2010

26

PFD's PLOTPLAN

EQUIPMENTLIST

FEP 2CLASS II

ESTIMATE-15%, 25%

FEP Modules originally Adapted from Strategic Project Planner, by Westney Consultants International, Inc. Additions from CII & Others by J. Fish S&B/FB&D

DEVELOPP&ID'S

P&ID'SISSUED

FORCOMMENT

P&ID'sISSUEFOR

APPROVAL

CONDUCTHAZARDSREVIEW

P&ID'sISSUEFOR

DESIGN

CLASS IIIESTIMATE-10%, +10%

FEP 3

[email protected]

Initiate PERMITTING PROCESS

DesignManagement

Plan

PDRILessonsLearned

PreliminaryHazardsReview

PROCESS SIMPLIFICATION

DEVELOP PERMITTING PLAN

Cost & Schedule Risk Analysis to

establish Contingencies

Early RISK Identification & Mitigation Plan

PDRI

To Align Team & Identify Critical Tasks/Elements INFO MGMT

PLAN (PIMS)

FRONT END PLANNING (FEP) WORK FLOW PROCESS

SCOPE DEFINITION PHASE FEP 3FEP 2 PROCESS Alternative Selection

Decision

15%10%Engineering

25-30%of Engineering

John Fish PM-FEP-WFD-005 Single Slide.PPT Rev 20 FEB 2010

FRONT END PLANNING (FEP) WORK FLOW PROCESS

25

PFD's PLOTPLAN

EQUIPMENTLIST

FEP 2CLASS II

ESTIMATE-15%, 25%

FEP Modules originally Adapted from Strategic Project Planner, by Westney Consultants International, Inc. Additions from CII & Others by J. Fish S&B/FB&D

DEVELOPP&ID'S

P&ID'SISSUED

FORCOMMENT

P&ID'sISSUEFOR

APPROVAL

CONDUCTHAZARDSREVIEW

P&ID'sISSUEFOR

DESIGN

CLASS IIIESTIMATE-10%, +10%

FEP 3

[email protected]

POTENTIAL ITEMS TO ADDRESS DURING FRONT END PLANNING

APPENDIX C1

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PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 1 11-29-08 Page: 19

SCOPE DEFINITION PHASE FEP 3FEP 2 PROCESS Alternative Selection

Decision

15%10%Engineering

25-30%of Engineering

John Fish PM-FEP-WFD-005 Single Slide.PPT Rev 20 FEB 2010

27

PFD's PLOTPLAN

EQUIPMENTLIST

FEP 2CLASS II

ESTIMATE-15%, 25%

FEP Modules originally Adapted from Strategic Project Planner, by Westney Consultants International, Inc. Additions from CII & Others by J. Fish S&B/FB&D

DEVELOPP&ID'S

P&ID'SISSUED

FORCOMMENT

P&ID'sISSUEFOR

APPROVAL

CONDUCTHAZARDSREVIEW

P&ID'sISSUEFOR

DESIGN

CLASS IIIESTIMATE-10%, +10%

FEP 3

[email protected]

Initiate PERMITTING PROCESS

DesignManagement

Plan

PDRILessonsLearned

PreliminaryHazardsReview

PROCESS SIMPLIFICATION

DEVELOP PERMITTING PLAN

Cost & Schedule Risk Analysis to

establish Contingencies

Early RISK Identification & Mitigation Plan

PDRI

To Align Team & Identify Critical Tasks/Elements INFO MGMT

PLAN (PIMS)

John Fish PM-FEP-WFD-005 Single Slide.PPT Rev 20 FEB 2010

27FEP Modules originally Adapted from Strategic Project Planner, by Westney Consultants International, Inc. Additions from CII & Others by J. Fish S&B/FB&D

[email protected] DESIGN FOR SAFETY & CONSTRUCTABILITY: Establish Program & conduct Ongoing Constructability/Safety Design Sessions

ENGINEERED EQUIPMENT - INQUIRY & BID EVALUATION EFFORT

ENGINEERED EQUIPMENT - DEVELOP EQUIPMENT DATA SHEETS

SPECIALISTSParticipation Plan

DEVELOP MATERIALS MANAGEMENT PLANNING FOR ENGINEERED EQUIP , FABRICATED PIPE/STEEL, THEN BULKS

CONTRACT &PROCUREMENT

STRATEGY

Team IntegrationSession 1

FEL 2Deliverable

Listing

ResponsibilityMatrix

Construction Management

Plan

Process Simplification

FRONT END PLANNING (FEP) WORK FLOW PROCESS

FEP 2 ACTIVITIES

APPENDIX C2

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PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 1 11-29-08 Page: 20

SCOPE DEFINITION PHASE FEP 3FEP 2 PROCESS Alternative Selection

Decision

15%10%Engineering

25-30%of Engineering

John Fish PM-FEP-WFD-005 Single Slide.PPT Rev 20 FEB 2010

28

PFD's PLOTPLAN

EQUIPMENTLIST

FEP 2CLASS II

ESTIMATE-15%, 25%

DEVELOPP&ID'S

P&ID'SISSUED

FORCOMMENT

P&ID'sISSUEFOR

APPROVAL

CONDUCTHAZARDSREVIEW

P&ID'sISSUEFOR

DESIGN

CLASS IIIESTIMATE-10%, +10%

FEP 3

[email protected]

Initiate PERMITTING PROCESS

DesignManagement

Plan

PDRILessonsLearned

PreliminaryHazardsReview

PROCESS SIMPLIFICATION

DEVELOP PERMITTING PLAN

Cost & Schedule Risk Analysis to

establish Contingencies

Early RISK Identification & Mitigation Plan

PDRI

To Align Team & Identify Critical Tasks/Elements INFO MGMT

PLAN (PIMS)

John Fish PM-FEP-WFD-005 Single Slide.PPT Rev 20 FEB 2010

28

[email protected] DESIGN FOR SAFETY & CONSTRUCTABILITY: Establish Program & conduct Ongoing Constructability/Safety Design Sessions

ENGINEERED EQUIPMENT - INQUIRY & BID EVALUATION EFFORT

ENGINEERED EQUIPMENT - DEVELOP EQUIPMENT DATA SHEETS

SPECIALISTSParticipation Plan

DEVELOP MATERIALS MANAGEMENT PLANNING FOR ENGINEERED EQUIP , FABRICATED PIPE/STEEL, THEN BULKS

CONTRACT &PROCUREMENT

STRATEGY

Team IntegrationSession 1

FEL 2Deliverable

Listing

ResponsibilityMatrix

Construction Management

Plan

Process Simplification

LINE LIST

Tie-InList

InstrumentIndexInitiate PERMITTING PROCESS

Materials Mgmt PLAN

QA/QCMgmt Plan

Cost & Schedule Management Plan

LessonsLearned PDRI

Constructability Check List

PDRIOptional

VALUEENGINEERING

SPLIST PERMITTING PROCESS

RISK/THREAT Identification & Mitigation Plan

Cost & Schedule Risk Analysis to

establish Contingencies

P&ID Changes must be

managed via formal MOC

FREEZE P&ID’s & scope as basis of

Estimate

Piping/MechPipe Stress

Strategy Mtg

One Line Pipe Routings

(Rack Loading)

INTERACTIVE

PLANNING SESSION

Update RISK/THREAT Identification & Mitigation Plan

FRONT END PLANNING (FEP) WORK FLOW PROCESS

FEP 3 TASKS

APPENDIX C3

Page 28: FRONT END PLANNING GUIDE

PM-FEP-GDLN-001 FRONT END PLANNING J. Fish Rev 1 11-29-08 Page: 21

SCOPE DEFINITION PHASE FEP 3FEP 2 PROCESS Alternative Selection

Decision

15%10%Engineering

25-30%of Engineering

John Fish PM-FEP-WFD-005 Single Slide.PPT Rev 20 FEB 2010

FRONT END PLANNING (FEP) WORK FLOW PROCESS

29

PFD's PLOTPLAN

EQUIPMENTLIST

FEP 2CLASS II

ESTIMATE-15%, 25%

DEVELOPP&ID'S

P&ID'SISSUED

FORCOMMENT

P&ID'sISSUEFOR

APPROVAL

CONDUCTHAZARDSREVIEW

P&ID'sISSUEFOR

DESIGN

CLASS IIIESTIMATE-10%, +10%

FEP 3

[email protected]

Initiate PERMITTING PROCESS

DesignManagement

Plan

PDRILessonsLearned

PreliminaryHazardsReview

PROCESS SIMPLIFICATION

DEVELOP PERMITTING PLAN

Cost & Schedule Risk Analysis to

establish Contingencies

Early RISK Identification & Mitigation Plan

PDRI

To Align Team & Identify Critical Tasks/Elements INFO MGMT

PLAN (PIMS)

John Fish PM-FEP-WFD-005 Single Slide.PPT Rev 20 FEB 2010

29

[email protected] DESIGN FOR SAFETY & CONSTRUCTABILITY: Establish Program & conduct Ongoing Constructability/Safety Design Sessions

ENGINEERED EQUIPMENT - INQUIRY & BID EVALUATION EFFORT

ENGINEERED EQUIPMENT - DEVELOP EQUIPMENT DATA SHEETS

SPECIALISTSParticipation Plan

DEVELOP MATERIALS MANAGEMENT PLANNING FOR ENGINEERED EQUIP , FABRICATED PIPE/STEEL, THEN BULKS

CONTRACT &PROCUREMENT

STRATEGY

Team IntegrationSession 1

FEL 2Deliverable

Listing

ResponsibilityMatrix

Construction Management

Plan

Process Simplification

LINE LIST

Tie-InList

InstrumentIndexInitiate PERMITTING PROCESS

Materials Mgmt PLAN

QA/QCMgmt Plan

Cost & Schedule Management Plan

LessonsLearned PDRI

Constructability Check List

PDRIOptional

VALUEENGINEERING

SPLIST PERMITTING PROCESS

RISK/THREAT Identification & Mitigation Plan

Cost & Schedule Risk Analysis to

establish Contingencies

P&ID Changes must be

managed via formal MOC

FREEZE P&ID’s & scope as basis of

Estimate

Piping/MechPipe Stress

Strategy Mtg

One Line Pipe Routings

(Rack Loading)

INTERACTIVE

PLANNING SESSION

Update RISK/THREAT Identification & Mitigation Plan

OPERABILITY, RELIABILITY, & MAINTAINABILITY PLANNING & REVIEWS

EQUIPMENTLOCATIONDRAWINGS

EstablishAREAS

CBS/WBS

CONTRACT &PROCUREMENTDetailed PLAN

Owner Turnover Plan for Commissioning & Start-Up

Develop Conceptual 3D Model to support Constructability, Operability & Maintainability reviews

SAFETY Mgmt Plan

Change Mgmt & Contingency

Management PlanValidate Existing Site Conditions

SOURCE INSPECTION

PLAN

FEP 3 TASKS

APPENDIX C4