Piping Training - Typical Project Types

TRAINING PROGRAM FOR YOUNG ENGINEERS - PIPING ENGINEERING - 2013
PROJECT (CONTRACT) TYPES

TYPICAL PROJECT LIFE CYCLE
PROJECT EXECUTION PHILOSOPHY
and
ENGINEERING DELIVERABLES
by
Dinesh Hande
2013 Aug 26
1 Techint India Ltd. – Training Program for Young Engineers

Project Contract Types, Life Cycle, Engineering Execution Philosophy, Engineering Deliverables.
Dinesh Hande
PREFACE – As part of the Training Program for the Young Engineers, this write-up and the Class-
room Session shall try and take a bird’s eye view of the above mentioned Important topics – which,
broad in nature as those are, albeit more relevant to Project Management; are equally important to be
well-understood by a Piping Engineer in order to clearly understand a few basics of the Project
Engineering Management. The intention is to help the young engineers identify his/ her role – as a
Piping Engineer and appreciate the immense importance, and the responsibilities it bring along - as one
of the integral links of the Project Cycle.
Since these topics are pretty vast, only the key and fundamental points are discussed over here.
Depending on the number of variables such as the complexity of the Project/ Client Preferences etc.
one could see several variations and combinations of these in actual Scenario.
BROAD PROJECT (CONTRACT) TYPES IN OUR INDUSTRY….
Feasibility Study
Basic Engineering/ FEED (Front End Engineering Design)
Detailed Engineering
EPCC - LSTK
EPC
Engineering & Procurement
PMC (Project Management Consultant)
We shall talk about how these contracts are different than one another.
TENTATIVE LIFE CYCLE OF A NEW PROCESS PLANT…
From Concept to Commissioning….
1. Feasibility Study (Determination of Techno- Economic Feasibility)
Economic Feasibility…
… why the Proposed Plant?

… what Product / Product Specification?
… what is the Demand – Present & Projected (Market Analysis)?
… what is the Target Clientele? What Volume?
… what is the Cost to Produce/ Transport and Sale?
… what is the Availability of Raw Material/ Catalysts/ Utilities/ Labour?
… what Location? (Site Selection)
… what are the Government Taxation/ Regulations/ Promotions and Concessions?
… what is the Revenue expected?
… what are the Alternatives currently available/ expected (Competition)?
… what Edge can we have over the Competition?
… would it be a Profitable?
… at what Scale?
… Is it Eco- Sustainable?

Dinesh Hande
…what are its pros and cons (Advantages and Risks – to the Promoters/ Organization and
Society/ Nation/ Planet as a whole e.g. pollution, impact on environment etc)
Technical Feasibility…
Process Feasibility
Choice of Process
BFDs (Block Flow Diagrams) --- PFDs (Process Flow Diagrams)
Scale and Method of Process etc.
Choice of Equipment (Major Process Equipment Selection)
Cost Analysis/ Cost Estimate/ Cost Optimization (Plant Cost + Operating Cost)
Engineering Feasibility (Assessing the Practicability of the Proposed Process Concept to
Operating Plant en-route’ various Mechanical Design Stages within the confines of the
International Codes & Standards, Safety Requirements etc)
Construction Feasibility (Assessing the Practicability of the Mechanical Design to a
Constructible and Operable Entity, within the confines of the Local Conditions)
2. Basic Engineering
Development of Process Design

BFDs (Block Flow Diagrams) --- PFDs (Process Flow Diagrams) --- Heat & Material Balance/
Material Selection Diagrams --- P&IDs (Piping & Instrumentation Diagrams) ---- Process Data
Sheets --- Utility P&IDs --- Line List --- Tie-In List (if applicable) --- Conceptual Layout (in
conjunction with Layout Dept) --- Design Basis.
Development of Mechanical & Layout Design

Design Basis - Overall Plot Plan --- Unit Plot Plans --- Equipment Layouts with Sections ---
Piping Study Layouts (for all the Process Critical Lines and Lines 4”/6” and above – or as
defined in the Contract --- Tie-In List (if applicable) (addition of layout data i.e. type of tie-in/
location etc.) --- Piping Material Specification --- Preliminary Loading Information --- any further
Deliverables as defined in the Contract.
Preliminary Equipment Mechanical Datasheets/ Setting Plans --- Preliminary Civil and Structural
Design --- Electrical Load List --- E&I Cable Layout
For some specific Patented Processes, the know-how may be development and legally owned
by only some specific company/ a few companies. Such Companies are called Process
Licensors who supply the Basic Engineering Package – as its part of their Technology. Some of
the major Process licensors are UOP, KBR, Fluor, Worley-Parsons, Lummus, Aker Solutions
etc.
The Basic Engineering Package usually make the ITB documents in order to invite the bids for
the Project Execution by means of Detailed Engineering Bid/ EPC/ EPCC bid etc.

Dinesh Hande
3. Bid for Engineering/ EPC Project
Bid Stage (based on the Tender Documents made available to the bidders)
The EPC/ Engineering Contractors prepare Techno-Commercial Bid Offers on the basis of
Basic Engineering Documents. The bid offers comprise of the following (depending upon the
type of bid, i.e. only Engineering or a LSTK EPC Bid)
Engineering Man-hours Estimate for all Engineering Disciplines
Technical Queries, Pre-qualifications and Assumptions for the ambiguities in the Bid Documents
Estimate for Software Requirement and cost associated
Engineering and Procurement Schedule
Project Execution Plans
Quality Plan
Purchase Requisitions for Equipment
Piping Material Take-off and Material Requisition
Painting & Insulation BOQ and Requisition
Piping Speciality Item Datasheets and Purchase Requisitions
Civil & Structural BOQ and Material Requisition
Electrical Load List/ Electrical- Instruments BOQ and Requisitions
Work Requisitions for Construction
Work Requisitions for Pre-commissioning and Commissioning and Start-up
Construction/ Mechanical Completion / Pre-commissioning and Commissioning Schedule
The Requisitions generated help the EPC contractor to get the Cost Estimate for Equipment/
Bulk Material/ Valves etc from the approved Vendors/ Fabricators/ Construction Sub-
Contractors.
Based Consolidated cost thus arrived (Engineering cost + Procurement of Equipment/ Bulk
Material and Other Items + Fabrication + Civil & Structural Construction cost etc. etc.) the EPC
contractors quote their LSTK bid, on evaluation of which (Technical & Commercial), the Client
awards the project though a EPC contract signed by the either party. The EPC contract is an
extremely elaborate Legal and Technical Document that comprises of several volumes, that
contain many a Technical Nitty-gritty, permissible time limit for raising and approving FEED
verification/ Deviations and Change Notes, to be mutually agreed, requirements for Review and
Approval of various Engineering Deliverable/ Testing & Inspection requirements etc. and legally
binding schedule for Project Completion in a Quality and Time-bound manner. The commercial
impacts/ penalties on various possible non-compliances of any of the contractual obligation from
either side are elaborated and signed.
(The above are only fundamental and basic stages/ requirements but do not contain all. There
may be many more details and vastly varied stages/ requirements, depending upon the
complexity of the Project)
4. Detailed Engineering
The first thing that follows a formal project award is the ‘Project Kick-Off’ Meeting, wherein some
of the above parameters are discussed at depth and agreed upon. Some of the immediate
stages next are..
FEED Endorsement
Finalization and Approval of Project Execution Plan and Schedule

Dinesh Hande
Feed Endorsement
Feed Endorsement that contain…

Verification and Finalization of Process Design --- Issue of Change Notes where applicable
Verification and Finalization of Plot Plan/ Equipment Layouts --- Issue of Change Notes where
applicable.
Based on the Feed Verification and Change Notes Approved, the basic documents such as
PFDs, P&IDs, PDSs, Plot Plan, PMS, Equipment Layouts etc are finalized and issued for
Design.
A time-bound schedule – like 8 to 12 weeks from the KOM - is agreed upon for Feed
Endorsement. This stipulated time period is an opportunity for the EPC contractor to verify in
detail the Basic Engineering, discover any discrepancies/ non-compliances (against the Process
requirements and the client standards, International Codes and Safety requirements etc) and
propose the remedial modifications in the basic design. Many an instances, such modifications
have effects on the overall cost of the Engineering and the Plant Cost – thus having potential to
alter the original LSTK quote earlier agreed upon by the Contract.
The client also has a time bound schedule to review the Feed Verification Report by the
Contractor and approve/ reject the modifications (Change Notes) proposed by the Contractor.
For the approved modifications and deviations from the Basic Design, appropriate alterations
are agreed in the LSTK cost. Obviously, this is an extremely important activity, because if the
EPC contractor fails to discover the FEED flaws at right time, then chances are that the cost
variations required for the corrective measures detected later during the Project – have to be
absorbed by the EPC contractor, thus directly affecting the Profitability of the EPC contract.
Besides, the later detection of FEED flaws will inversely affect the Engineering and Overall
Schedule.
In Techint, we have a Standard Checklist for the Feed Endorsement Activity. It’s attached as
Annexure “A” to this document. The checklist provides the basic guideline for the verification
however due to very nature of the activity many more parameters require to be taken in
consideration depending the type/ size of the Project.
Taking into account the criticality of this phase – often ignored during the formal Institutional
Piping Trainings, we shall have a separate session dedicated to Feed Endorsement – along
with a real case study to illustrate its significance and magnitude of the changes it may bring in
to the Detailed Design.
Deliverable List
A detailed List of Deliverables is prepared – in line with the FEED documents and the SOW
(Scope of Work) as per the Contract. The numbering of the deliverables is done as per the
numbering procedure of the Contractor or the Client – as agreed by the Contract. The
deliverables list shall also have type, format, size, quantity and planned man-hours for the
deliverable as well as the relative weightage assigned to the respective deliverable. It shall also
have the proposed stages of the respective deliverable (i.e. IFI, IFD, IFC etc.)

Dinesh Hande
The IDC/ Squad Checks that the different Deliverables are to be subjected to, depend on the
Contractor’s Procedures. Also, the intention of issues of various deliverables to different
disciplines and client are pre-determined in the Engineering Execution Plan (for example,
certain deliverables are issued to client for Approval, while some other are issued for
Information only)
Project (Engineering) Execution Plan and Schedule
The Project Engineering Execution Plan (also called Project Execution Philosophy) details out
the Philosophy that the Contractor intents to execute the Project with. Beginning with the Project
Introduction, Definitions etc. the PEP then chalks out Set-up of the Engineering team, the matrix
of flow of information within the Engineering Disciplines, Organization Charts, Responsibilities
and authority levels of various roles such as PEM, QM and the Discipline Lead Engineers etc.,
Procedures for Deliverables Issue, Co-ordination and QMS Procedures, Software to be used
etc/
The Project Engineering Manager (PEM) prepares a Detailed Execution Schedule for the
Engineering Activities and Deliverables, wherein important Project Milestones - such as - IFD
issue of the Process Design, IFD issue of the Plot Plan/ Eqpt Layouts, the dates for 30%, 60%
and 90% Design and 3D Model Reviews, Issue of the IFC P&IDs and other Drawings,
Beginning and Completion of the IFC Isometrics etc; to name a few - are determined. Discipline-
wise, Unit-wise and Deliverable-wise detailed bar charts are prepared to determine the start and
completion dates for different deliverables, having given careful attention to the inter-
dependency of the deliverables of the different disciplines. (for example, the civil/ structural
design can not commence until the upstream deliverables, such as plot plans/ eqpt layouts/
loading info are issued).
The planning/ Project Engineers make use of the software such as MS Project/ Primavera for
preparation of the Project Schedule. The schedule allows extraction of different reports/ various
outputs, such as bar charts/ graphs etc. and have provision to display the actual progress
against the Planned, during later stages of the Engineering.
Detailed Engineering
Starting from the Design Basis/ Schematics until the Final Drawings to be issued for
Construction, various Engineering Disciplines churn out numerous Drawings/ Documents/ Lists
and perform activities that act as Input to downstream Disciplines. While some of these may be
independent, most deliverables are inter-dependent in nature and often require extensive input
and co-ordination to complete it from the disciplines other than its very creator. A simple
example, while the Mechanical Data Sheet (Setting Plan) of Equipment such as Tanks/ Vessels/
Columns are created by the Static Eqpt group, it remains incomplete until the Piping Group
contributes an important input – Nozzle Orientation.
Therefore, widespread collaboration and flaw-less multi-disciplinary synchronization is the key

to the timely and quality Engineering Execution – especially in order to minimize the last minute
surprises getting apparent not in drawing office but right out there in the field!

Dinesh Hande
Interface between different disciplines is a vast subject and a topic covered separately. So I
refrain from going to farther depth on it. Nonetheless, should you be interested, I would be
pleased to explain in details with live examples.
The Key Deliverables and Activities of various Detailed Engineering Disciplines are listed under
Annexure “B”
5. PROCUREMENT
Based on the approved drawings, the BOQs required for different bulk and speciailty/ package
items of various Engineering Disciplines are arrived at. These – coupled with the respective
Requisitions – form the basis for the Procurement Activity. The Techno-Commercial bids are
invited by the Procurement Department from the list of Suppliers approved by the Contractor
and if required, by the Client. The Technical Bids received are subjected to TBE (Technical Bid
Evaluation) by the originating Engineering Discipline, while the Commercial Negotiations are
handled by the Procurement Department. Specialized procedures such as ‘Supply Chain
Management’ are employed by the Procurement Department in order to zero on the supplier
that would actually bag the order. The Client Preference/ Geo------Political Conditions/ Capacity
of the Supplier/ Delivery Commitment/ Proximity to the Project Site etc. also play important
roles while finalizing the successful bidders. Purchase orders are then issued, of which technical
requisitions as well as commercial and legal aspects form integral parts of.
Certain key process package units need procuring from a specialized company/ies, having the
respective know-how (called ‘Process Licensors’).
The Project Procurement Manager, is also responsible for the timely delivery of the equipment
and materials, fully in compliance with project designs, specifications, quality requirements, and
at the construction site fully protected and properly documented to fully support the construction
schedule, as well as the timely delivery of all Vendor Documentation to allow detailed
engineering to proceed in accordance with the project schedule.
6. CONSTRUCTION
After the IFC deliverables are issued from an Engineering Office, those are routed to the
Construction Sub-Contractor(s) selected. Construction is actual placement (erection) of
equipment, buildings and structures, Fabrication and laying of Pipework/ valves, Installation of
cable trays/ cables/ Electrical Equipment/ Control Systems etc. There would be an array of
Selected Construction sub-contractors, responsible for different jobs such as Tank Fabricators,
Pipe Fabricators, Civil Contractors, Structural Fabricators, Electrical & Instruments sub-
contractors etc. etc. One can imagine how difficult and critical the harmonization between these
different parties having their own different interests in the project would be. It’s all handled by
the EPC Contractor’s Resident Construction Manager. The schedule of Construction and
interfaces between different sub-contractors are handled by the Construction Manager’s office.
Construction Manager is assisted by the resident representatives from all the engineering
disciplines (usually from the same team that has worked in the Engineering office) for offering
the ‘Engineering Support’ whenever needed.

Dinesh Hande
As far as Piping is concerned the Construction Activities mainly include the fabrication of Piping
Spools at the fabrication yard, pre-fabricated spools being transported to the site, placed in-situ
and joined to complete the systems. While the sub-contractors use the Piping Isometrics as
their input, they have to prepare what’s called as ‘Spool-Drawings’, considering the facility of
pre-fabrication and transport available with them and tolerance required for the field welds. They
also have to prepare the ‘test-packs’ in order to hydro-test the closed systems once fabricated
and put in place. The role of a Piping Engineer deputed to Site to assist Construction activities
is, to give quick solutions for the problems identified during construction such as interference
between Piping/ Valve with other Piping, Equipment or Structure, requirement of additional
support, requirement of having to re-route certain Piping etc. and responding to various queries
the construction sub-contractor may come up with while comprehending the isometrics and
support drawings.
7. PRE-COMISSIONING AND COMISSIONING
Simply put, Commissioning is taking the cold-assemble (Mechanically complete) plant to go on

stream and commence producing the desired product at desired Specification. These require
specific skills and expertise, as the start-up conditions are significantly different than the Steady
State Plant Operating Conditions.
After the plant is commissioned and test runs are carried, usually the contract requires the
EPCC contractor to have successfully run the plant for a stipulated time periods.
Preparation of the final dossiers for hand-over of the Engineering Deliverables, Vendor
Documentation, Operating Manuals, As-building of the drawings also form the important
contractual obligation that require to be fulfilled at this stage.
8. SIGNIFICANCE OF PIPING ENGINEER IN OVERALL PROJECT CYCLE
Considering the fact that the Plant Layout and Piping Discipline form an important and integral
link of the Project Life Cycle, it’s imperative that the Piping Engineers require – apart from the
expertise of their own - wide Knowledge of all the Engineering Disciplines.
This is because the Piping (Plant Layout and Piping, actually) is the Discipline that acts as Link
between different Engineering Disciplines. It has involvement in almost every stage of Project
Execution and always remains on the Critical Path of the Project Execution. It absorbs data from
some disciplines, processes it and pass on the further data to the next disciplines.
Also Piping Engineering is responsible for a substantial part of Project Cost. Any errors created
by Piping in the initial Design may trigger a domino effect that adversely affects all the
downstream activities/ Disciplines. Piping Activities and Deliverables play very important role in
the Project Schedule as several other activities of other disciplines directly depend on the
quality and timing of that of the Piping. Piping provides considerable amount of information and
Design continuity in the Project Design Structure. In an overall Project Cycle, the Criticality of
the role of the Piping Engineer necessitates the following demands.
Adequacy, Economy, Clarity, Accuracy and Strict Adherence to the Schedule.

Dinesh Hande
ANNEXURE “B”
THE KEY ACTIVITIES PERFORMED BY THE ENGINEERING DISCIPLINES.
Process engineering
• Prepare and issue of PFDs

• Prepare and issue, in collaboration with the other involved disciplines, the
P&IDs.
• Issue data for Classification of Hazardous Locations.
• Issue the Preliminary Electric Load List
• Prepare and issue the fire protection drawings.
• Cooperate with the other involved disciplines to define and prepare the
technical specifications and data sheets for equipment, packages,
instrumentation, electrical and DCS.
• Complete the HAZOP study as required.
• Prepare and issue the cause and effect diagrams.
• Support the Technical Departments for Bids Technical Evaluation.
• Revise technical documents according to ordered material.
• Issue the preliminary edition of the following documents relevant to the scope
of work:
- PRECOMMISSIONING GENERAL SPECIFICATIONS

- COMMISSIONING PROCEDURES
- PROJECT RECORD BOOKS
• Resolve any NON CONFORMITY during construction.
• Organize and carryout all the activities relevant to the pre-
commissioning/commissioning (Auxiliary systems only).
• Assure technical assistance during pre-commissioning/commissioning.
• Issue the “AS BUILT” Documentation.
Machinery and packages
• Cooperate with Process Department to finalize the P&ID’s.

• Cooperate with involved Departments to finalize mechanical specifications.
• Define the items and packages specifications.
• Issue the Material Purchasing Specifications, General Specifications, etc.
• Define the layout of Machinery and Packages.
• Issue Requisition for Quotation and Technical Evaluation of material to be
purchased.
• Check and approve the supplier’s Construction Drawings and support
Inspection Department for Workshop tests.
• Revise technical documentation to fully comply with purchased equipment.
• Carry out the Detailed Engineering according to the Vendor’s engineering.

Dinesh Hande
• Provide the Construction Department with quantities, drawings, etc.
• Cooperate to the following documents:
- FIELD QUALITY CONTROL PLAN
• Assure the technical assistance during the construction activities.
• Assure technical assistance during pre-commissioning/commissioning.
Piping and mechanical equipment engineering
• Cooperate with Process Department to define the P&ID’s.

• Cooperate with involved Departments to define the mechanical Specifications.
• Issue project piping specifications.
• Issue technical specification for Painting, insulation and anti-corrosive
coatings.
• Issue the General Plot Plan, prospective views, sections, overall dimensions of
structures.
• Define the piping system layout.
• Perform the Stress Analysis.
• Issue the data for the design of foundations.
• Issue Requisition for Quotation, and Technical Evaluation of material to be
purchased.
• Check and approve the Supplier’s Construction Drawings.
• Carry out the Detailed Engineering to fully comply with the purchased
materials.
• Define and issue the technical documentation required for construction activity
(Piping Layouts, DWG’s required for piping prefabrication and erection, piping
isometric drawings etc.).
• Provide the Construction Department with quantities, drawings, particular
specifications, etc.”
• Assure technical assistance during the Construction activities.
• Assure technical assistance during pre-commissioning/ commissioning.
Electrical Engineering

Dinesh Hande
• Cooperate with involved Departments to define mechanical specifications.
• Finalize and confirm ETAP Studies (Load Flow, Short Circuit current,
Grounding System)
• Define cable runs, protection coordination studies and diagrams, relay
protection and one line diagrams.
• Cooperate with Process to issue Hazardous Area classification.
• Carry out the Detailed Engineering for Electrical Substation.
• Issue Electrical Load List.
• Define in detail the cathodic protection system and the Anode Groundbed
Locations.
• Issue Requisition for Quotation, and Technical Evaluation of material to be
purchased.
• Revise technical documentation to fully comply with purchased materials.
• Carry out the Detailed Engineering according to the purchased material.
(Cable run and road crossing details, lighting systems, cable interconnection
diagram).
• Provide the “Construction Department” with quantities, drawings, etc.
• Assure the technical assistance during the construction activities.
• Issue the “AS-BUILT” Documentation.
Instrumentation and automation engineering
• Cooperate with Process Department to define P&ID’s.

• Cooperate with involved departments to define mechanical specifications.
• Define cable runs.
• Issue technical specification and data sheets of instruments.
• Carry out the Detailed Engineering for DCS and ESD.
• Issue Requisition for Quotation and Technical Evaluation of material to be
purchased.
• Revise technical documentation to fully comply with purchased materials.
• Carry out the Detailed Engineering according to the purchased material.
(Cable run and road crossing details, instrumentation and RTUs, cable
Dinesh Hande
interconnecting diagram, instrument primary and secondary connection
sketches).
• Provide the Construction Department with quantities, drawings, etc.

• Assure the technical assistance during the Construction activities.
Civil Engineering
• Issue technical documentation to subcontract soil investigation survey, if

necessary.
• Issue grading plan and sections or plant area.
• Detail design of the general civil works and the steel structures.
• Issue civil works general layouts including roads etc.
• Carry out the Detailed Engineering regarding the reinforced concrete works.
• Define and issue the technical documentation required for construction
activity, foundation layout, construction details etc.
• Provide the “Construction Department” with quantities, drawings, etc.
• Assure the technical assistance during the Construction activities.
• Issue the “AS-BUILT” Documentation.

Dinesh Hande

Piping Training - Typical Project Types

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TRAINING PROGRAM FOR YOUNG ENGINEERS - PIPING ENGINEERING - 2013

PROJECT (CONTRACT) TYPES

1 Techint India Ltd. – Training Program for Young Engineers

BROAD PROJECT (CONTRACT) TYPES IN OUR INDUSTRY….

TENTATIVE LIFE CYCLE OF A NEW PROCESS PLANT…

From Concept to Commissioning….

1. Feasibility Study (Determination of Techno- Economic Feasibility)

… why the Proposed Plant?

2 Techint India Ltd. – Training Program for Young Engineers

Development of Process Design

Development of Mechanical & Layout Design

3 Techint India Ltd. – Training Program for Young Engineers

4 Techint India Ltd. – Training Program for Young Engineers

Feed Endorsement that contain…

5 Techint India Ltd. – Training Program for Young Engineers

Project (Engineering) Execution Plan and Schedule

Therefore, widespread collaboration and flaw-less multi-disciplinary synchronization is the key

6 Techint India Ltd. – Training Program for Young Engineers

7 Techint India Ltd. – Training Program for Young Engineers

7. PRE-COMISSIONING AND COMISSIONING

Simply put, Commissioning is taking the cold-assemble (Mechanically complete) plant to go on

8. SIGNIFICANCE OF PIPING ENGINEER IN OVERALL PROJECT CYCLE

8 Techint India Ltd. – Training Program for Young Engineers

THE KEY ACTIVITIES PERFORMED BY THE ENGINEERING DISCIPLINES.

• Prepare and issue of PFDs

- PRECOMMISSIONING GENERAL SPECIFICATIONS

Machinery and packages

• Cooperate with Process Department to finalize the P&ID’s.

9 Techint India Ltd. – Training Program for Young Engineers

Piping and mechanical equipment engineering

• Cooperate with Process Department to define the P&ID’s.

10 Techint India Ltd. – Training Program for Young Engineers

Instrumentation and automation engineering

• Cooperate with Process Department to define P&ID’s.

• Provide the Construction Department with quantities, drawings, etc.

• Issue technical documentation to subcontract soil investigation survey, if

12 Techint India Ltd. – Training Program for Young Engineers

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