Design Optimization Challenges During Detailed Engineering: EPC Contractors' Perspective

Abstract The successful completion of Detailed Engineering is influenced by the timely acceptance of design changes proposed by Engineering, Procurement & Construction (EPC) Contractors during design development. EPC Contractors develop the Front End Engineering & Design (FEED) design based on detailed engineering data. A key challenge faced during Detailed Engineering is that Companies tend to be unfavorable towards the design optimization proposals by EPC Contractors. This paper attempts to discuss some of the challenges based on examples from projects executed in the recent past. During Detailed Engineering, multiple design reviews are held by the EPC Contractor, together with the Company. During these reviews, all design changes, i.e. additions and deletions from the FEED design, are discussed. While the approach that Companies have towards design additions is encouraging, the same cannot be said towards design optimization proposals that EPC Contractors attempt to bring out. More often than not, Companies insist that EPC Contractors follow the FEED design, even though the proposed optimizations offer improved design. EPC Contractors develop the design, based on detailed design data, including data from vendors and results from specialized engineering studies etc., which are not available at the FEED stage. Therefore, EPC Contractors are better equipped to analyze the design optimization opportunities. Even though EPC Contractors are responsible for the detailed design and performance guarantees of the project facilities, they are often forced to forego their optimized designs, and use the designs developed at the FEED stage. This raises the fundamental question of defining the basic objective behind "Design Development", i.e. whether EPC Contractors should explore design optimization opportunities, or simply follow the design as received from the FEED stage. NPCC, as a large EPC contracting Company, is involved in many onshore / offshore oil and gas projects, and has experienced a variety of design development challenges during Detailed Engineering. The paper highlights the design optimization challenges faced during the execution of recent projects and consequences thereof. The paper also proposes measures to effectively handle design development issues, which will provide benefit to all stakeholders.