Article No : b04_477

Chemical Plant Design and Construction

ERICH MOSBERGER, Lurgi AG, Frankfurt, Federal Republic of Germany

1. Introduction. . . . . . . . . . . . . . . . . . . . . . 250 4.1.4. Know-How Contracts via Engineering

2. Feasibility Study . . . . . . . . . . . . . . . . . . 250 Contractors . . . . . . . . . . . . . . . . . . . . . . . 287
2.1. Initial Work. . . . . . . . . . . . . . . . . . . . . . 251 4.2. Design and Supply Contracts with
2.2. Cost Estimation . . . . . . . . . . . . . . . . . . . 252 Engineering Contractors . . . . . . . . . . . . 288
2.2.1. Investment Costs . . . . . . . . . . . . . . . . . . . 252 4.2.1. Selection of Engineering Contractors . . . . 288
2.2.1.2. Global Methods of Investment Cost 4.2.1.1. Importance of Risk in the Plant Business . . 288
Estimation. . . . . . . . . . . . . . . . . . . . . . . . 253 4.2.1.2. Selection and Award Criteria . . . . . . . . . . 288
2.2.1.3. Detailed Methods of Investment Cost 4.2.2. Form and Content of Contracts . . . . . . . . 289
Estimation. . . . . . . . . . . . . . . . . . . . . . . . 254
4.2.2.1. Basic Concerns in Contract Writing . . . . . 289
2.2.1.4. Item-by-Item Calculation . . . . . . . . . . . . . 255
4.2.2.2. Contract Types and Provisions . . . . . . . . . 290
2.2.1.5. Cost Indexes . . . . . . . . . . . . . . . . . . . . . . 256
4.2.2.3. Essential Elements of a Contract . . . . . . . 291
2.2.2. Operating Costs. . . . . . . . . . . . . . . . . . . . 256
5. Execution of the Project . . . . . . . . . . . . 293
2.2.3. EDP Support . . . . . . . . . . . . . . . . . . . . . . 257
5.1. Scope of Work . . . . . . . . . . . . . . . . . . . . 293
2.3. Profitability Analysis . . . . . . . . . . . . . . . 257
5.2. Project Organization and Management . . 294
2.3.1. Profitability Analysis as an Engineering Task 257
5.2.1. Matrix Project Management . . . . . . . . . . 294
2.3.2. Methods of Profitability Analysis . . . . . . . 258
5.2.2. The Project Manager . . . . . . . . . . . . . . . . 295
2.4. Site Selection . . . . . . . . . . . . . . . . . . . . . 259
5.2.3. The Project Team . . . . . . . . . . . . . . . . . . 296
2.5. Decision between Alternative Investments 259
5.2.4. The Start Phase of a Project . . . . . . . . . . . 296
3. Preliminary Design . . . . . . . . . . . . . . . . 260
5.3. Project Control (Schedules, Progress,
3.1. Preliminary Design Costs. . . . . . . . . . . . 260
Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . 297
3.2. Final Selection of Site Locations . . . . . . 261
5.3.1. Time Scheduling . . . . . . . . . . . . . . . . . . . 297
3.3. Process Design . . . . . . . . . . . . . . . . . . . 263
5.3.2. Progress Planning and Control . . . . . . . . . 299
3.3.2. Optimization . . . . . . . . . . . . . . . . . . . . . . 267
5.3.3. Cost Planning and Control . . . . . . . . . . . . 300
3.3.3. Safety Aspects and Environmental Control 269
5.3.4. Project Report . . . . . . . . . . . . . . . . . . . . . 302
3.3.3.1. Protection Against Emissions . . . . . . . . . . 270
5.4. Detail Engineering . . . . . . . . . . . . . . . . . 303
3.3.3.2. Noise Control . . . . . . . . . . . . . . . . . . . . . 270
5.4.1. Process Engineering. . . . . . . . . . . . . . . . . 303
3.3.3.3. Occupational Safety and Health . . . . . . . . 272
5.4.2. Plant Layout . . . . . . . . . . . . . . . . . . . . . . 303
3.3.3.4. Plant Availability . . . . . . . . . . . . . . . . . . 272
5.4.3. Apparatus and Machinery . . . . . . . . . . . . 305
3.3.3.5. Authority Engineering . . . . . . . . . . . . . . . 273
5.4.4. Piping . . . . . . . . . . . . . . . . . . . . . . . . . . . 308
3.4. Basic Engineering . . . . . . . . . . . . . . . . . 275
5.4.5. Control Systems . . . . . . . . . . . . . . . . . . . 312
3.4.1. Equipment Specification from the Process
5.4.6. Electrical Design . . . . . . . . . . . . . . . . . . . 315
Engineering Standpoint . . . . . . . . . . . . . . 275
5.5. Procurement . . . . . . . . . . . . . . . . . . . . . 316
3.4.2. Materials of Construction. . . . . . . . . . . . . 275
5.5.1. Purchase of Equipment and Services . . . . 316
3.4.3. Plant Layout . . . . . . . . . . . . . . . . . . . . . . 279
5.5.2. Expediting. . . . . . . . . . . . . . . . . . . . . . . . 317
3.4.4. Preliminary Piping and Instrumentation
5.5.3. Shipping . . . . . . . . . . . . . . . . . . . . . . . . . 317
Diagram . . . . . . . . . . . . . . . . . . . . . . . . . 281
5.6. Planning and Execution of Civil Work and
3.5. Calculation of Plant Costs . . . . . . . . . . . 281
Erection . . . . . . . . . . . . . . . . . . . . . . . . . . 317
3.5.2. Equipment. . . . . . . . . . . . . . . . . . . . . . . . 282
5.6.1. Planning of Civil Work and Erection . . . . 318
3.5.3. Bulk Materials. . . . . . . . . . . . . . . . . . . . . 283 5.6.1.1. Planning of Civil Work (Including Structural
3.5.4. Other Costs . . . . . . . . . . . . . . . . . . . . . . . 284 Steel Work). . . . . . . . . . . . . . . . . . . . . . . . 318
3.6. Conclusion of Preliminary Design Phase 285 5.6.1.2. Erection Planning . . . . . . . . . . . . . . . . . . 319
4. Contract Writing and Forms of Contracts 286 5.6.2. Execution of Construction . . . . . . . . . . . . 319
4.1. Licensing Agreements . . . . . . . . . . . . . . 286 5.6.2.1. Construction-Site Organization and
4.1.1. Patent Licenses . . . . . . . . . . . . . . . . . . . . 286 Management . . . . . . . . . . . . . . . . . . . . . . 319
4.1.2. Process Licenses . . . . . . . . . . . . . . . . . . . 286 5.6.2.2. Time Scheduling and Progress Control . . . 320
4.1.3. Process Licenses via Engineering Contractors 287 5.6.2.3. Construction Work . . . . . . . . . . . . . . . . . 321

2012 Wiley-VCH Verlag GmbH & Co. KGaA, Weinheim

DOI: 10.1002/14356007.b04_477
250 Chemical Plant Design and Construction
5.7. Commissioning. . . . . . . . . . . . . . . . . . . .
5.7.1. Plant Design and Commissioning . . . . . . .
5.7.2. Operating Manual . . . . . . . . . . . . . . . . . .
5.7.3. Responsibility and Organization . . . . . . . .
5.7.4. Preparation for Commissioning . . . . . . . .
5.7.5. Plant Startup . . . . . . . . . . . . . . . . . . . . . .
6. Computer Support. . . . . . . . . . . . . . . . .
6.1. Role of Computers in Project Execution
1. Introduction
Since the 1930s, the design and construction of
chemical plants have become increasingly spe-
cialized. Chemists and engineers collaborate to
develop process and engineering concepts,
which engineers and designers then transform
into detailed plans and specifications for all the
components of a chemical plant. Purchasing
agents procure equipment from specialist man-
ufacturers. Construction and installation firms
are put under contract to build the plant.
Plant design and construction starts as an idea
of the potential owner. Increasingly complex
markets and the interrelations of the world eco-
nomic and political systems require critical ex-
amination of every project for feasibility, eco-
nomic relevance, and environmental impact. As a
rule, this is done with the aid of a feasibility study
that includes preliminary design work. Market
analyses are carried out to determine potential
sales, future demand dynamics, availability of
raw materials, and the competitive situation. The
plant capacity and location are specified. Partic-
ular attention must be paid to environmental
protection. Studies are supplemented by suffi-
ciently accurate estimates of capital require-
ments and profitability.
Once the decision has been made to go ahead
with the construction project, whereby the owner
may have opted not to carry it out himself, the
owner will prepare an accurate, comprehensive
definition of the plant which is used as the basis
for inviting bids from competent engineering
contractors. This approach is increasingly em-
ployed, especially for large projects. (If the own-
er has an adequate pool of experienced design
engineers, construction specialists, and procure-
ment staff, he may plan and construct the plant
himself.) The conceptual phase of the project
ends when an appropriate engineering firm is
chosen and the contract signed.
Vol. 8
322 6.2. EDP Infrastructure and Systems . . .... 327
322 6.3. Coordination and Interfaces . . . . . .... 328
323 7. Quality Assurance . . . . . . . . . . . . . .... 328
325 8. Training of Plant Personnel. . . . . . .... 329
325 References . . . . . . . . . . . . . . . . . . . .... 330
325
326
326
The implementation phase consists of the
engineering of the chemical plant, procurement
of plant equipment and material, construction,
and commissioning. The engineering contractor
either performs all of these tasks or brings in
subcontractors or personnel employed by the
owner to carry out a portion of the work.
Plant equipment is fabricated by specialized
manufacturers. Only in rare cases does the engi-
neering contractor or the plant owner have pro-
duction facilities.
After a successful test run, the plant is handed
over to the owner. (Fig. 1 shows a schematic
diagram of the development of a chemical plant
project.)
This article does not discuss the design and
construction of small, simple plants that special-
ized firms can supply ‘‘off the rack.’’ It deals with
larger, more complicated projects in the field of
chemical plant construction. The term chemical
plant design and construction is used in a very
broad sense. It also relates to allied technologies,
such as metallurgy, environmental protection,
fiber and food production, and petroleum and
natural gas processing. Some of these basic
project development and execution principles
can also be applied to general industrial plant
construction.
2. Feasibility Study
At the start of a project, the bases used for
planning are still very inexact. No major costs
should be incurred until it is known whether the
project is feasible or not. Nevertheless, all alter-
natives must be considered. A great deal of
experience is needed if uneconomic variants are
to be discarded without generating high design
costs. The first steps toward accurate definition of
the project are carried out by the company that
wishes to erect the plant. A small working group
Vol. 8
Figure 1. Development of a project
is formed, consisting of process engineers, sales
engineers, and other engineering personnel. It is
useful to appoint a project leader to coordinate
the team. Normally, the same person will later
become responsible for implementing the project
if the decision is taken to proceed.
Preliminary studies aimed at defining the
objective partly depend on initial economic es-
timates and generally include:
1. Market analysis and trend analysis
2. Fixing of production capacity
3. Examination of competing processes and of
the patent and license situation
4. Legal aspects
5. Estimation of investment costs
6. Estimation of production costs
7. Estimation of profitability
8. Selection of an appropriate plant location
2.1. Initial Work
Market Analysis and Production Capa-
city. Before the economically optimum plant
capacity is set, a careful market analysis must be
carried out. This analysis must be performed by
Chemical Plant Design and Construction 251
experienced market analysts, even if the product
has a comprehensive international sales history.
These specialists evaluate literature on the de-
velopment of similar products, determine the
capacity of existing production facilities, carry
out representative surveys, obtain suitable con-
ditions from downstream processors in the case
of intermediate products, and forecast the future
market for the product. They must also provide a
realistic evaluation of the competition and the
world economic situation. Forecasts of costs for
raw materials and working capital play an im-
portant role in the economic analysis.
A new chemical product usually experiences
slow early growth with a relatively high price and
low output. The market then expands; production
climbs faster and prices drop. Finally, prices
stabilize at a low level, and older, smaller plants
are shut down (see Fig. 2). If market analysis
shows that world output of the product is still
increasing rapidly, expansion of capacity
through erection of a new plant may have a good
outlook if other conditions are favorable. The
future price decline must, however, be allowed
for in the calculations.
In the upper part of the trend curve, invest-
ment only makes sense if a clear demand is
252 Chemical Plant Design and Construction
Figure 2. Development of a new product
perceptible in the market. The production curve
for the old process may fall off if a new, more
economical production process appears. (Exam-
ple: low-pressure process for methanol produc-
tion forces shutdown of older high-pressure pro-
cess.) The new process may open up new markets
and lend new impetus to development [1–4].
Competing Processes, Patent and License
Situation. The patent and license situation
must be investigated at the beginning of the
study. Foreign patents may block the construc-
tion project if the owner of the patent is not
prepared to grant a license (see also Chap. 4).
Legal Aspects. Extensive, far-reaching en-
vironmental regulations mean that it is essential
to make an early approach to authorities that will
later have to approve the operation of the plant
(see Section 3.3.3.5).
2.2. Cost Estimation
If initial planning work has shown that invest-
ment is desirable and the market analysis has led
to a tentative capacity figure, a first estimate of
investment costs and subsequent operating costs
is performed.
Simply calculating and analyzing the invest-
ment costs is not sufficient because, over the
service life of a plant, operating costs make up
a much greater proportion of life- cycle costs than
investment costs do. The goal of cost estimation
in the conceptual phase is to optimize the life-
cycle costs of a chemical plant. This often means
increasing investment costs so as to lower oper-
Vol. 8
ating costs. Operating costs are favorably influ-
enced by long component and equipment life-
times, improvements in maintenance and con-
sumption, and other factors. Cost prediction as
the basis for profitability analysis should there-
fore include the determination of investment
costs as well as subsequent production and oper-
ating costs.
The following sections discuss methods of
determining investment and operating costs.
2.2.1. Investment Costs
A proven technique in investment cost estima-
tion is to subdivide the project into onsite and
offsite items.
Onsite Items. The term onsites denotes all
facilities required to make the desired product.
Offsite Items. Offsites are all facilities that
are normally not located within the process plant.
They include facilities for the delivery of steam,
electric power, gas, solid or fluid fuels, water,
compressed air, and instrument air. Furthermore,
this group includes stockpiles and warehouses
for raw materials and semifinished and finished
products; service facilities (administrative build-
ings, canteens, workshops, stores, laboratories,
parking, fire protection, roads, tracks, and harbor
facilities); and, finally, power plants; loading
docks; facilities for treating raw materials, off-
gas, wastewater; and waste disposal facilities.
In the United States, offsites are usually di-
vided into storage and handling (stocks of raw
materials and finished products), utilities (gener-
ation or delivery of energy as steam, electricity,
and water), and service facilities (e.g., offices,
recreation rooms, laboratories, workshops,
warehouses).
On grounds of cost, an attempt must be made
to carry out an ‘‘order-of-magnitude’’ estimate at
minimal cost. This estimate is of course inexact,
but later it makes it easier to decide whether to
bear the costs for an accurate analysis. The
approximate determination of investment costs
is subdivided into simple ‘‘global’’ methods and
‘‘detailed’’ methods. Methods for estimating in-
vestment costs are now well-established; those
now in use are described in publications mainly
dating from 1960 – 1984.
Vol. 8
2.2.1.2. Global Methods of Investment Cost
Estimation
Global methods permit investment costs to be
estimated relatively easily and with an accuracy
between
30 % and
50 %. Several methods
are outlined below [5].
Single Complexity Factor. In the single-
complexity-factor method [6] processes are clas-
sified as having a low, medium, or high com-
plexity factor.
Low Complexity Factor. This class includes
all batch processing plants and all processes
involving simple syntheses (e.g., production of
sulfuric acid).
Medium Complexity Factor. This class
comprises processes with gas and fluid phases
that run at ordinary pressures and temperatures.
High Complexity Factor. This class covers
processes with high pressures and/or tempera-
tures, as well as polymerization processes.
Investment costs depend on the complexity
factor and the required plant capacity, and are
determined from empirical data obtained in other
processing plants. Auxiliary and utility units are
taken into account by adding 45 %.
This method has the advantage that it permits
estimation of investment costs in the orientation
phase when little information about the process is
available.
Turnover Ratios. The turnover-ratio meth-
od allows costs to be estimated without process
information by using market information such as
product sale price and sales volume [7].
On the basis of plants already on-stream, a
capital turnover ratio is obtained by dividing the
annual return on sales by the investment costs. A
statistically determined turnover ratio and an
expected annual return on sales are then used to
estimate the investment costs of new plants.
Turnover ratios in the chemical industry lie
between 1.2 and 1.5.
Statistical turnover ratios can be found for the
analysis of individual plants, companies (based
on balance sheets and profit-and-loss statements
of typical firms), or a whole industrial sector.
Degression Exponents. The use of degres-
sion exponents (cost-versus- capacity exponents)
per-mits relatively accurate cost estimation. The
Chemical Plant Design and Construction 253
technique is based on costs for plants already on-
stream. The exponents are used to estimate in-
vestment costs for the planned facility as a func-
tion of plant capacity.
Investment costs for proces plants are pub-
lished from time to time and can be used for
initial cost estimation. The costs of identical or
similar plants within the same company can be
used in a similar way. In 1967, J. E. HASSELBARTH
[8] published the costs of process plants for 60
chemical products, including investment costs
per tonne of annual capacity. His figures referred
to costs within battery limits (i.e., within the plant
boundary), exclusive of land and offsite facili-
ties. In 1970, K. M. GUTHRIE [9] compiled the
investment and operating costs for 54 chemical
and refinery processes covering a wider capacity
range. The degression exponents cited in both
publications allow the calculation to be applied to
other capacities. (Example: Given a degression
coefficient of 0.7, doubling the capacity leads to
an increase in investment costs by a factor of
20.7 ¼ 1.65.)
When specific degression exponents are used
it should be noted that the error range grows with
the capacity scaling factor. This type of calcula-
tion generally gives acceptable results only for
scaling factors of up to 1: 3. Furthermore, the use
of the method depends on the state of the art
because changes in processes, apparatus, and
mechanical technique can change the exponents.
Comparative Methods. When adequate
data are available from an existing plant similar
to that being planned, the investment costs of the
old plant can obviously be used to calculate the
costs of the new one.
The following information is needed [5]:
1. Production capacity
2. Construction time
3. Investment costs (inside and outside battery
limits)
4. Location
Costs inside and outside battery limits are both
determined with degression exponents. Cost es-
timation outside battery limits must, however, be
preceded by a critical analysis of the auxiliary
and utility units needed. The figures are adapted
to the location by the use of indexes to adjust for
the following [5]:
254 Chemical Plant Design and Construction
1. Construction location
2. Economic situation of the industry
3. Taxes
4. Labor market
5. Qualifications of available labor
2.2.1.3. Detailed Methods of Investment Cost
Estimation
If the preliminary planning as embodied in
technical documents has reached an advanced
stage, it can form the basis for investment
cost estimation that takes into account specific
details of the project. Methods used for this
are mainly based on analogies with plants that
are already on-stream. Detailed methods of
plant matching [10] and multiplication-factor
techniques of cost determination are emp-
loyed.
Lang Factor Method. If the process is well
characterized, the required capacities of fur-
naces, apparatus, and machinery can be specified
in preliminary flow sheets [11]. These specifica-
tions cover main plant items such as furnaces,
columns, filters, reactors, heat exchangers, ves-
sels, and machinery. The estimator can determine
the costs ‘‘free-on-site’’ for such items or obtain
the costs from suppliers.
LANG used cost analyses of existing plants to
derive multiplication factors that allow determi-
nation of the investment costs for process units
within battery limits if the costs of the main
equipment items are known [12]. The factors
depend on the type of plant. LANG distinguishes
three types according to the state of aggregation
of the raw material and product: ‘‘solid’’ (e.g., ore
sintering), ‘‘solid – fluid’’ (e.g., oil – shale re-
torting with shale – tar recovery), and ‘‘fluid’’
(e.g., petroleum refineries, petrochemical plants).
If the costs for the main plant items are taken
as 100, total processing-plant costs are found by
multiplying by 3.10 (solid-processing plant),
3.63 (solid – fluid-processing plant), or 4.74
(fluid-processing plant).
CHILTON [13] and HAND [14] have improved
these approximate Lang factors by introducing
supplements to the costs of main equipment
items. Estimates of the total costs of a ‘‘grass-
roots’’ plant can then be made. Figure 3 outlines
the procedure for preliminary calculations by the
Lang – Chilton method.
Vol. 8
Other authors have extended and refined the
Lang method. For example, BURGERT in 1979
published an analysis of investment- cost struc-
tures for more than 100 projects [15].
In 1965, MILLER [16] devised another system
based on modified Lang factors. MILLER assumed
that the factors are influenced by three other
parameters besides those used by LANG (solid,
solid – fluid, fluid):
1. Size of main equipment items
2. Material from which the plant is constructed
3. Pressure for which the plant is built
Increasing size, more refined materials, and
higher operating pressure increase the relative
costs of the main equipment items in relation to
storage, utilities, and service facilities, thus di-
minishing the factors. According to MILLER, all
factors can be referred to the mean per-piece
costs of plant parts and depend on these.
Guthrie’s Modular Technique. The mod-
ular technique published by GUTHRIE [17] in 1968
is also based on LANG’s method and is the best of
the multiplication-factor approaches. The project
is first broken down into six modules [10]:
Five direct modules
Chemical processes
Solids handling
Site development
Industrial structures (civil work)
Auxiliary and service facilities outside battery
limits (offsites)
One indirect module
Indirect project costs
The key costs of the direct modules are deter-
mined first. For the ‘‘chemical process’’ module,
these might be costs for machinery and equip-
ment. As shown in Figure 4, the key costs of the
direct modules are multiplied by the gross mod-
ule factors. The sum of the individual ‘‘gross
module costs’’ gives the investment costs for on-
and off-battery facilities.
GUTHRIE proposes a variety of methods for
calculating the equipment costs of a module. The
multiplication factors required for this include
not only size of the component (magnitude fac-
tor) and the alloy factor, but also indirect effects.
Vol. 8
Figure 3. Preliminary cost estimate using factors (Lang – Chilton method)
This relatively accurate modular technique has
not found wide acceptance, however, because it
is relatively difficult to perform the calculation
and maintain the statistical data base.
2.2.1.4. Item-by-Item Calculation
When detailed methods of investment- cost esti-
mation do not give sufficient accuracy, the only
Chemical Plant Design and Construction 255
alternative is to calculate investment costs item
by item. The plant equipment and the engineer-
ing work must be specified. The procedure and
amount of work required for such a cost estima-
tion are the same as those described for calculat-
ing plant costs (see Section 3.5). Close coopera-
tion between the subsequent operator of the plant
and an engineering firm has proved advantageous
for this approach.
256 Chemical Plant Design and Construction Vol. 8

Figure 4. Simplified modular concept for estimating investment costs

F ¼ net module factor; F2 ¼ gross module factor

2.2.1.5. Cost Indexes 2.2.2. Operating Costs

The methods of investment-cost estimation dis- Along with the investment costs, the operat-
cussed above are generally based on historical ing costs incurred in the production of a given
statistics derived from existing plants. The cost product also play an important part in deciding
figures obtained by these methods are therefore
referred to given periods, such as 1985. If invest-
ment costs are to be estimated for the year 1990,
the estimates must be adjusted to current prices.
Every industrial country publishes one or more
indexes for this purpose. Some widely used
indexes for the United States and Germany
follow:

1. Bureau of Labor Statistics cost index for

equipment, machinery, and materials in the
U.S. market
2. Chemical Engineering Plant cost index
[18–20]
3. K€olbel – Schulze index for chemical plants
(K€olbel – Schulze Index f€ ur Chemieanlagen)
[21]
4. Producer price index for commercial products
(Index der Erzeugerpreise gewerblicher Pro-
dukte) compiled by the German Federal Sta-
tistical Service (Statistische Bundesamt)

These indexes are based both on chemical-
plant cost structures and on national primary
price indexes. Figure 5 compares important cost
indexes over time.
Figure 5. Development of cost indexes
a) CE Plant cost index, 1959 ¼ 100, successively published
in [18] (1982 revision of productivity factor from 2.50 to
1.75); b) K€olbel – Schulze index, 1976 ¼ 100, successively
published in [19]
Vol. 8
whether to erect a plant. The technical and eco-
nomic literature, however, contains little infor-
mation on the preliminary calculation of operat-
ing costs. Possible reasons are the complexity of
the problem and the company’s possible loss of
maneuvering room if internal operating data
were published [22].
The methods of estimating operating costs
discussed below are based on data from compa-
rable plants or empirical data from plants belong-
ing to the same company [22].
They are related, but differ as regards starting
information: published data, empirical data,
business information, physical data, correlations,
and information from comparable plants. In or-
der to check the reliability of the results, operat-
ing costs should be estimated by several methods
so that the calculations can be verified and error
ranges given.
Graphical Method. The graphical method
is based on statistical evaluation of operating
costs in existing plants. Operating costs per unit
of product are plotted versus plant capacity. It is
important to be aware of the scope of the plotted
costs. The graph usually includes only the
manufacturing costs of a product: raw materials,
power, catalysts, chemicals, wages, depreciation,
and maintenance. Plant overheads, fixed costs,
and indirect production costs should also be
taken care of by multiplication factors.
Business Analysis. The analysis of bal-
ance sheets and profit-and-loss statements
from companies that manufacture the product
in question as their main commodity may also
be helpful.
Energy-Based Methods. Chemical produc-
tion processes involve large amounts of energy.
The chemical reactions themselves often contrib-
ute very little to energy requirements but up-
stream and downstream operations do. This fact
provides the basis for several methods used to
estimate operating costs [13], [23–25].
Key Cost Categories. If it is assumed that
chemical plants show relatively constant operat-
ing- cost structures for a given product, operating
costs can be calculated with multiplication fac-
tors if a single cost category is known accurately
[22].
Chemical Plant Design and Construction 257
Scaleup Methods. When operating costs for
similar plants are known,specific data can be
used to derive scaling coefficients for propor-
tional, personnel-dependent, and investment-
dependent costs. The operating costs can then
be estimated.
2.2.3. EDP Support
A number of manufacturers and operators have
established electronic data processing (EDP)
programs for estimating investment and operat-
ing costs. Examples are Factest (ICI) [26] and the
ASPEN package [27]. The ASPEN PLUS soft-
ware, a flow sheet simulation program, is sup-
plemented with a costing module.
The program sizes the most important
equipment and machinery from the process
simulation. Investment costs are estimated by
the use of multiplication factors and cost
indexes to adjust to current price levels.
ASPEN PLUS allows the calculation not only
of fixed costs for an investment, but also
operating costs.
To determine operating costs, the program
calculates fixed and variable components sepa-
rately. Variable costs include raw materials,
fuels, catalysts, disposal, and ‘‘running royal-
ties’’. Fixed costs comprise personnel costs for
maintenance and operation, overheads, insur-
ance, and taxes. The program generates summa-
ries and details of annual operating costs. Finally,
the software can evaluate a variety of profitability
measures (Section 2.3).
2.3. Profitability Analysis
2.3.1. Profitability Analysis as an
Engineering Task
In profitability calculations, it is necessary to
keep in mind that a plant erected without reserves
(standby units) for unavoidable shutdowns and
repairs will produce for only 330 days (or
8000 h) a year; that is, it will attain only ca.
90 % of rated capacity on a long-term basis.
Manufacturers generally rate their equipment for
operation at 10 % over capacity. However, this
figure only applies to intermittent overloads and
is not guaranteed.
258 Chemical Plant Design and Construction
If full-load operation is required all year, the
plant must not be designed as a single-train
(single processing line) facility, unless it is set
up for 110 % capacity and adequate storage is
provided for the finished product. Large storage
areas are needed if sales are seasonal (e.g.,
fertilizers).
Because the feasibility study includes com-
parisons between alternative processes, two pro-
cesses with equal profitability need not be ranked
equally. For example, both may have equal
production costs but different fixed costs.
Fixed costs usually comprise interest pay-
ments and operator wages. Nearly all other costs
depend on output and are therefore variable (e.g.,
costs of raw materials, power, and fuel). If
market conditions make it necessary to reduce
the output to, say, 80 % of rated capacity, the
plant with high fixed costs will become unprofit-
able more quickly. Thus, in the case of two
equally profitable plants, the plant with the lower
fixed-cost contribution will be preferred. High
fixed costs often have to be accepted, if the need
for reliable operation dictates that critical parts of
the plant must be designed with 100 % standby
capacity or the plant must be subdivided into
parallel trains.
The profitability calculations must take into
account that 2 – 2.5 years usually elapse be-
tween the start of planning and the commission-
ing of the plant. Interest therefore has to be paid
on design and construction costs. Working capi-
tal is also needed for storage of raw materials and
product. Finally, for technical or market-related
reasons, a period of 6 – 12 months generally
elapses after commissioning before the utiliza-
tion of the plant is sufficient to cover the costs
(break-even point). Only then does the return
flow of capital begin.
The history of an investment is illustrated
schematically in Figure 6.
2.3.2. Methods of Profitability Analysis
Methods for assessing the profitability of a proj-
ect [1, pp. 285 – 401], [28–33] differ in the way
investment, revenue, and risk are associated. The
three most important techniques are described
briefly below.
These profitability calculations are combined
and linked with operations research techniques
Vol. 8
Figure 6. Schematic showing the course of capital
investment
a) Accumulated profits; b) Return on investment; c) Total
production costs (fixed and variable); d) Fixed costs; e) Ac-
cumulated cash flow
[34], [35], so that alternative proposals can be
obtained with a justifiable amount of effort.
Payout (Payback) Period. If alternatives
are only to be compared, it may be adequate to
divide invested capital by gross excess revenues
(proceeds from sales minus operating costs).
This method gives a quick indication as to
whether the investment is attractive. If, for
example, a value of 3 (payout period 3 years)
or less is obtained, the investment should be
profitable. This does not mean, however, that the
plant will be completely written off after three
years on stream.
A more realistic figure can be obtained by
including taxes and interest under expenses and
listing revenues by year after commissioning
(higher operating costs in the first year when full
capacity has not been reached, future decline in
earnings).
Return on Investment (ROI). In large
chemical companies, investments depend not so
much on the payout period but on whether the
investment will increase total profits, i.e., divi-
dends to the stockholders. Thus a large company
will only invest if a certain return on invested
capital is ensured. The ROI method is employed
in such cases. The annual profit before taxes and
interest, but after depreciation, is divided by the
invested capital. In contrast to the preceding
method, startup losses are neglected and data
for design- capacity operation are used in the
Vol. 8
calculation. The result is a pretax rate of return on
invested capital.
Dynamic Calculations are based on the
discounted cash flow (DCF) method. The DCF
method is an advance over ROI. It allows for the
fact that investment costs precede revenues.
Since only funds existing at the same time can
be compared, all revenues and expenses that are
directly or indirectly related to the project from
the start of planning onwards are discounted to a
fixed time, usually the start of production. A rate
of return is then sought that makes the sum of the
discounted annual excess revenues equal to the
cash value of the total investment at the start of
production. Since excess revenues are spread
throughout the entire year, they are all recalcu-
lated to the middle of the year and discounted
from then on. The calculation runs over the
economic life of the project, but usually only
10 years, since the longer-term market position
can scarcely be foreseen. Furthermore, the equiv-
alent value of revenues after more than 10 years is
so small that it has little effect on the result
(internal rate of return).
2.4. Site Selection
The selection of an optimal site is a high-priority
item in the feasibility study. Every economic
region has its advantages and disadvantages. The
present and future importance of correct site
selection can scarcely be overstated. Wrong site
choices cannot be corrected later and have led to
the downfall of many companies.
The development of world trade and the de-
cline of tariffs have changed the environment of
many existing plants for the worse. Formerly, for
example, the steel mill was located near the coke
plant and iron ore transported to it. Today, the
most important Japanese steel mills are located
on the coast and import coal and ore from over-
seas. Petroleum refineries used to be sited at
petroleum sources. Now that giant tankers and
pipelines have come into wide use, refineries are
often located in consumption centers.
Many large chemical companies are now in-
vesting in coastal and foreign property. Good
surveys of publications important in site selection
can be found in [1, p. 439], [36–38]. STOBOUGH
has devised a selection system, based on a point
Chemical Plant Design and Construction 259
ranking, which allows unsuitable sites to be elim-
inated quickly. The short list of remaining sites
should then be examined as described below.
Site Quality, Topography, Soil Conditions,
Climate, Flood Risk. The short list should in-
clude only locations that appear suitable for the
plant and possible subsequent expansions from
the standpoint of size, price, transportation facil-
ities, and buildability.
If the terrain is not flat, it should be established
whether grading or filling is necessary and
whether piles must be driven for foundations. If
transportation facilities (roads, railroad tracks,
water routes) are lacking, the expense of devel-
oping them must be ascertained. Only costs for
developed sites can be compared.
Raw-Material Availability Including
Power, Fuels, and Water. Raw materials of good
quality must be available at a favorable price
throughout the service life of the plant. Other
prerequisites are availability of sufficient fresh
water, electric power, and fuels. Obtaining power
and steam on a grass-roots site can be expensive.
Environmental Conditions, Environmental
Legislation, and Infrastructure of the Con-
struction Site. Improved roads, rail connections,
and location on harbors or year-round navigable
rivers are important criteria.
Long-Term Availability of Qualified
Labor. In developing countries, leading person-
nel – from foremen to management – must meet
very stringent requirements. Only after years of
schooling will local personnel have the required
standard of education.
Raw-material costs, wages, and maintenance
costs are also crucial in site selection. Finally, it
must be taken into account that the phase of
startup losses will be longer if an industrial site
has to be developed from scratch.
2.5. Decision between Alternative
Investments
Preparation for Decisionmaking. Large
investment projects involve exploration of wide-
ly varying options. In addition to straight profit-
ability analysis, qualitative factors should also be
considered (e.g., special site problems, political
environment, market development). These
qualitative factors involve risks, which must
also be assessed. The preparation phase for
260 Chemical Plant Design and Construction
decisionmaking therefore includes not only cal-
culation of investment and operating costs, but
also risk and sensitivity analysis [39].
Risk Analysis. In risk analysis, all constraints
that can have an adverse effect on life- cycle costs
and earnings must be identified, documented, and
assessed. These include:
1. Estimation of sales market
2. Energy cost development
3. Availability of raw materials
4. Plant construction risks
5. Management-related risks (e.g., site-depen-
dent problems, reliability of vendors and
subcontractors)
6. Organizational risks
The financial effects of the identified risks are
quantified by experts in risk-assessment proce-
dures and the results then evaluated in a Monte
Carlo simulation [39].
Sensitivity Analysis. Sensitivity analysis
should be carried out to find out how the profit-
ability and risk situation changes when certain
assumptions and constraints are varied. For ex-
ample, it might be asked how much the invest-
ment costs would have to be reduced to allow the
desired profit and an acceptable amortization.
A calculation of annual revenues based on the
quantity of product that can be sold in the market
and its price allows a variational calculation of this
type to be made. The expected profit is deducted
from the sum over the project life. The remainder
represents the maximum available investment and
operating costs that have to be optimized in several
steps. This approach is called ‘‘design to cost.’’
Investment costs are often minimized in this ap-
proach by designing low- cost plants (usually
open-air plants with simple equipment and no
storage capacity for intermediate products).
Several iterations are usually required to reach
an optimum between investment costs and oper-
ating costs.
Decisionmaking. Profitability, sensitivity,
and risk analyses may lead to the conclusion that
execution of the project is not desirable. Recent
publications may have already shown that similar
projects undertaken by third parties will oversat-
urate the market. Other companies may have
Vol. 8
access to such good raw-material sources that
the company considering the project cannot com-
pete. It may be that environmental regulations
have a prohibitive effect on costs. The planning
work should then be stopped until new informa-
tion or analyses suggest a different conclusion.
The avoidance of huge losses on a badly planned
facility far outweighs the costs incurred up to this
point. If, however, the feasibility study reveals a
positive situation, the next step is to incorporate
the capital requirement into the company’s in-
vestment program and give the go-ahead to start
preliminary design.
3. Preliminary Design
The following results from the feasibility study
provide the basis for deciding to proceed to the
preliminary design phase:
1. Plant capacity has been set on the basis of
market research
2. The choice between expansion of an existing
facility and construction of a new one has
been made
3. The list of potential sites has been shortened to
two or three alternatives
4. The projected capital outlay has been
determined
5. The projected production costs for the product
have been determined
6. The payout time and profitability have been
estimated
The main task in preliminary design is to
obtain a more exact calculation that takes into
consideration all costs up until commissioning.
The first step toward this objective is to work out
the engineering details.
A qualified project leader directs the prelimi-
nary design. Specialist engineering teams (e.g.,
for process calculations, equipment design, plant
layout, and estimations) provide advisory sup-
port [40].
3.1. Preliminary Design Costs
The funds and time spent on preliminary design
can be considerable, depending on how pre-cise
planning and budget are to be. Although highly
Vol. 8
accurate results are always sought, technical
documentation and calculations should be re-
fined only to the degree necessary for subse-
quently deciding whether to implement the proj-
ect. Events during the preliminary design period
may force the abandonment of the project.
If the feasibility study predicts very favor-
able profitability, less accurate calculations (say

20 %) may be acceptable; if the project is
expected to be marginally profitable, better
accuracy (e.g.,
10 %) is needed. Figure 7
[41] shows the basic information required for
given accuracy levels. Even if the upper and
lower limits of the percentage ranges in Figure 7
are made equal, the probability of exceeding the
projected costs is greater than that of falling
short of them. This is primarily due to subse-
quent additions that are not known at the time
when the calculation is performed. A ‘‘contin-
gencies’’ item is therefore commonly included
in the calculation.
Design costs for preliminary calculations at
various accuracy levels, according to the Ameri-
can Association of Cost Engineers [42], are pre-
sented in Table 1. Specific empirical figures are
given in [43].
Preliminary design requires a special project
team consisting of persons with the necessary
expertise. A chemical company whose engineer-
ing staff is oriented mainly toward maintenance
and the occasional addition of new pieces of
equipment should not attempt to perform the
preliminary design of a large plant or a branch
plant in-house. Such a department lacks appro-
priate experience and is also short of capacity.
The need to hold down design costs and maintain
the performance level of in-house engineering
staff on their specific tasks, forces even large
chemical firms to collaborate closely with exter-
nal engineering contractors who will later be in
charge of executing the project. External engi-
neering firms usually offer cost advantages be-
cause they have so much experience in their
routine fields that they can quickly estimate
reliable cost figures for projects based on well-
known processes.
The client’s role is limited – at least as far as
established processes are concerned – to making
process knowhow available, purchasing li-
censes, and cooperating with the engineering
contractor in customizing the plant to relevant
requirements.
Chemical Plant Design and Construction 261
Contract forms have been developed for the
collaboration between the customer and the en-
gineering firm in the basic-design and/or detai-
lengineering phases, as well as for procurement,
supply, construction, construction supervision,
and commissioning (Section 4.2.2).
Another option for cutting design costs is for
the chemical firm to obtain a process license, with
the licenser providing the complete ‘‘basic
design.’’
3.2. Final Selection of Site Locations
After the feasibility study two or three suitable
sites are often available for the new plant. A
final decision can be made only after detailed
study.
If the potential sites are close to the client’s
parent plant, similar fringe conditions can be
assumed to apply for the purpose of site compar-
ison. If, however, a branch plant is to be erected in
a foreign country, conditions are usually differ-
ent which means that each of the alternatives has
to be carefully analyzed.
Important constraints besides those already
listed in Section 2.4 include:
1. Medium- and long-term capacity of the local
(national) market to absorb the product
2. Export to nearby countries
3. Availability, quality, and price of raw
materials
4. Political situation and risks (e.g., risk of
nationalization)
5. Tax laws, tariffs, possibility of repatriating
profits
If, for example, one country has cheap raw
materials but a limited capacity to absorb the
product, partial upgrading of the raw material and
fabrication of intermediate products should be
considered. Manufacture of the end product
would then take place where there is adequate
long-term demand and a suitable distribution
network.
A team of the client’s experts should perform
a thorough on-site examination of each alterna-
tive before the final decision is made; close
contact with national and local government agen-
cies is important. The recommendations of this
team should weigh heavily in the choice of site.
262 Chemical Plant Design and Construction Vol. 8

Figure 7. Accuracy of cost assessment based on available information [41]

Vol. 8 Chemical Plant Design and Construction 263

Table 1. Design costs for cost estimates [43]

Type of estimate Synonymous terms Accuracy, % Costs as percentage

of project value

Order of magnitude estimate ratio estimate
30 –
50 0 – 0.1

seat of the pants estimate
ballpark estimate
guesstimate
Study estimate evaluation estimate
20 –
30 0.1 – 0.2
predesign estimate
factored estimate
Preliminary estimate sanction estimate
10 –
25 0.4 – 0.8
funding estimate
authorization estimate
budget estimate
Definitive estimate project control estimate
5 –
15 1–3
Detailed estimate tender estimate
2–
5 5 – 10
contractor’s final
cost estimate

Partnership with qualified domestic enter-
prises is becoming increasingly popular (e.g.,
joint ventures).
3.3. Process Design See also ! Process
Development, 1. Fundamentals and
Standard Course
The feasibility study defines the process objec-
tive, i.e., it specifies products (type and quantity),
feedstocks and auxiliaries (type and quantity),
and local conditions (environmental situation,
elevation, climate, energy situation). This objec-
tive, together with the overall state of the art and
the experience of the operater, licenser, or plant
design and construction contractor, provide the
basis for process selection.
Process selection can be done most simply in
the form of a block flow diagram (Fig. 8), in
which each block represents a unit operation or,
in complex plants, a plant section containing

Figure 8. Block flow diagram (olefin plant)

264 Chemical Plant Design and Construction
several unit operations. The blocks are joined by
lines representing the principal material and
energy streams.
The first step in process design is to establish
the operating parameters for the major stages in
the process:
1. In the case of chemical reactions, the pres-
sures, temperatures, concentrations, reactor
type, and reactor size are defined or estimated
on the basis of the reaction kinetics and
experience gathered in existing plants
2. In the case of mixing (stirring, gas disper-
sion, suspension) or separation (distillation,
drying, precipitation, filtration) of sub-
stances, the pressures, temperatures, con-
centrations, and type and size of apparatus
are defined or estimated on the basis of
established rules.
If information needed for setting the operat-
ing parameters or designing reactors/apparatus
is not known, it must be obtained in bench or
pilot-plant tests or calculated approximately on
the basis of similar reactions or unit operations.
The unit operations used in process engineer-
ing are described in [44–49].
Process Flow Diagram. The next step is to
prepare a process flow diagram from the block
flow diagram. Standard symbols (e.g., defined in
DIN 28 004) are used to represent reactors and
other apparatus, including equipment for con-
veyance and control of important streams.
In complex plants, it may be necessary first to
prepare a synoptic flow diagram (Fig. 9) and then
to draw up individual flow diagrams, giving the
needed detail for plant sections and auxiliary
operations.
Determination of Final Process Data.
When the desired effective operating time per
year has been set (e.g., 8000 h, corresponding to
91 % availability), the design capacity of the
plant (i.e., the mass throughput per unit time) is
defined. The next step is to compile the specifica-
tions for all feedstocks, auxiliaries, catalysts,
utilities, and end products, and to estimate what
intermediate products are to be expected. These
specifications include relevant physical and
chemical properties as well as the battery-limit
states of all substances received and shipped.
Vol. 8
On the basis of the process flow diagram, the
preliminary process parameters, and the above-
mentioned specifications are used to prepare
material and energy balances for the process
steps and finally for the entire process. This
objective is not generally achieved in a single
set of computations. The experienced process
engineer must use an iterative procedure to mod-
ify the process flow diagram and/or the process
parameters so that a closed material and energy
balance is attained as simply as possible. The
following must always be ensured:
1. Compliance with emission limits.
2. Plant safety (i.e., adequate margins of safety
relative to critical operating conditions).
3. Maintenance of product quality.
4. Control of startup operations and of planned
and unplanned shutdowns. This includes
specification of components and media re-
quired (e.g., heatup burners, cooling and
purge gases, and pressure-reducing valves).
These calculations must also take account of
long-term effects, such as increasing contamina-
tion (resulting in a higher pressure drop and less
efficient heat transfer) or aging of catalysts
(lower conversion, changes in temperature and
concentration profiles).
The calculations give mass and energy values
for all important points of the plant, preferably
downstream of each unit operation. The mass and
energy flow rates and the final process parameters
are tabulated at the foot of each process flow
diagram and keyed to points in the plant
(Fig. 10).
The preliminary sizes of the reactors and
apparatus are now checked and, if necessary,
modified in the light of the final process
parameters.
If a plant is to be operated at reduced capacity
for short or long intervals, appropriate calcula-
tions must be performed. If unacceptable operat-
ing conditions or bottlenecks are found in certain
plant sections, additional measures must be taken
(e.g., supplementary heating, gas recycle, or the
partial shutdown of some unit operations). A
similar treatment applies when occasional over-
loading of the plant is expected.
Other factors are then determined, namely the
quantities of substances that have to be available
 Vol. 8
Chemical Plant Design and Construction

Figure 9. Overall process flow diagram (olefin plant)

265
266 Chemical Plant Design and Construction
Figure 10. Individual process flow diagram for a plant section
a) Heat exchanger; b) Purification tower; c) Control valve; d) Block valve; e) Steam trap; f) Blind; g) Control loop (temperature,
pressure, flow)
for the initial charges and the storage capacities
(including those outside the battery limits) need-
ed for feedstocks, auxiliaries, intermediates, and
end products.
Finally, a detailed process description is writ-
ten. Assessments of known processes are avail-
able on a subscription basis from Chem Systems
Vol. 8
Inc. and SRI International. A survey of produc-
tion processes for initial and intermediate organic
products is given in [50].
Process Simulation. Process design calcu-
lations for multistage, interconnected processes
with material and energy recycle soon become
Vol. 8
very complex. Computer tools enable designers
to develop key concepts in a reasonable time and
thus to optimize the process according to certain
criteria (investment cost, yield, energy economy,
production costs). ‘‘Flow sheeting’’ programs are
complicated computer programs that model unit
operations mathematically and allow them to be
interconnected. A plant can thus be represented
as a network of unit operations with material and
energy streams and thus simulated [51], [52]. The
material and energy balances can be calculated as
functions of the process parameters. An iterative
procedure can be carried out to bring the balances
to equilibrium for individual and interconnected
unit operations.
Simulation programs are available for steady-
state operation and dynamic conditions (e.g.,
ASPEN PLUS, DESIGN II, PROCESS, HYSIM,
and SPEED UP).
Design calculations for reactors and other
equipment (e.g., heat exchangers) can be per-
formed with special-purpose design programs and
process simulation packages. The program for a
fired tubular furnace (e.g., steam reformer) allows
calculation of process conditions as a function of
the configuration and geometry of the tubes, bur-
ners, and combustion chamber. An important func-
tion of such programs is to simulate the equipment
when connected into systems and to identify and
remedy bottlenecks (de-bottlenecking).
Process simulators have integrated substance
data bases that meet the needs of most applica-
tions. Further data can be obtained from data
bases [53] and compilations of physical and
chemical data [54–56]. Proprietary data and em-
pirical factors (interactions, long-term effects)
can also be input.
3.3.2. Optimization
The object of plant optimization is to obtain an
optimal economic result. This is a continual
problem during the operation of a plant, espe-
cially if its capacity is diminished by aging or
increased by expansion, or if product earnings,
costs, or expected profits change during its life-
time. The parameters necessary for subsequent
optimization must, if possible, be established in
the design stage. They relate to process design,
the plant concept, the selection of equipment,
and the process control system.
Chemical Plant Design and Construction 267
The operating result is primarily determined
by product earnings, expected profit, and costs.
Obviously, costs decrease with longer plant ser-
vice life and higher availability. The feasibility
study should provide data about both of these
factors.
Most chemical production facilities are oper-
ated around the clock. Since fixed costs represent
a significant proportion of the operating costs
(interest payments, personnel, energy supply,
overheads), high availability is essential for an
optimal result and is often more important than
maximal process optimization.
Single-train plants with many unit operations
in series are more susceptible to breakdowns than
plants in which the critical sections are multi-
trained or have standby equipment. The draw-
back of a larger capital investment must be
weighed against the advantage of a higher ex-
pected availability.
In established methods of risk analysis, the
plant concept is systematically analyzed on the
basis of process flow diagrams, process descrip-
tion, equipment lists, and operating experience
(e.g., reliability and maintainability, RAM). An
initially higher expenditure on equipment not
only results in better availability but also lowers
repair and maintenance costs.
Optimization of process engineering must
then be investigated. The process design ob-
jective of a unit operation or a plant can be
achieved with various combinations of capital
costs and variable production costs (feed-
stocks, auxiliaries, utilities, energy consump-
tion, disposal) as the following simplified
examples show:
1. In plants with high gas throughputs, the cross-
sectional areas of piping, fittings, and reac-
tors/apparatus determine the pressure drop in
the plant and thus the energy that must be
expended to transport the gaseous media.
Large cross sections, with correspondingly
higher capital costs, lead to lower energy costs
and vice versa.
2. In heat exchangers, such as those used for
waste-heat recovery, the quantity of trans-
ferred heat increases with increasing ex-
change area (¼ higher capital costs) and in-
creasing flow velocities (¼ higher pressure
drop ¼ higher energy consumption) and vice
versa.
268 Chemical Plant Design and Construction
In each case, there is an optimum for given
economic parameters. The second example is
more complicated, because not only must the
cost optimum for a given quantity of heat be
determined but also the optimal quantity of heat
to be exchanged. It must further be taken into
consideration that the cost of waste-heat transfer
to the environment decreases when more heat is
recovered.
Similar examples could be cited for the opti-
mization of conversions, the optimization of the
product mix when products are coupled, and the
simultaneous minimization of byproducts and
residues and of their reprocessing or disposal.
The examples lead to the following conclu-
sions: identical plants do not have a unique
optimum; instead, they have a variety of optima
that depend on the crucial technical and econo-
mic constraints of a given site location. Optimal
design of the plant is based on economic para-
meters employed in the design phase. Subsequent
deviations may partly offset one another or may
accumulate in the result.
The objective is thus to assign cost factors to
the functional dependences of the process design
or, in mathematical terms, to express the depen-
dence of the costs on the engineering variables in
the form of a cost function. Limiting parameters
always have to be introduced, e.g., emissions,
plant reliability, product quality, and safety fac-
tors for equipment and material (to ensure maxi-
mum lifetime and on-line time). Optimization
can be solved by a suitable method (linear and
nonlinear optimization, mixed-integer program-
ming, gradient and search procedures).
The large number of variables in a plant
design and the high degree of interaction in plants
with many process loops mean that a facility
cannot be completely optimized during the de-
sign phase. The dimensions of such a program
exceed any reasonable and justifiable computer
effort.
It is useful to begin by performing an eco-
nomic – technical analysis of the process based
on the ‘‘standard design’’ (not yet optimized).
This analysis reveals the process stages in which
significant fractions of the costs are incurred,
consumed, or transformed, and expresses them
as a proportion of the total costs. As a rule, a few
key points dominate the economics of the entire
plant. Optimization work can thus be facilitated
right from the start.
Vol. 8
If individual cost items in subsequent operat-
ing periods are expected to deviate significantly
from the values chosen initially, new calculations
can be made for the few key points, taking
maximum and minimum values (sensitivity
analysis).
A practical application of this method is the
comparison of designs ‘‘on an evaluated basis.’’
The costs for the necessary capital (often with
allowance for the expected return on investment
and tax considerations) and for capital goods are
represented in a formula. The actual require-
ments for capital and capital goods are substitut-
ed into the formula. The lowest resultant value
identifies the best concept for the selected pre-
mises. Details of cost structure and financing
need not be known.
Optimization of Individual Tasks. For the
calculation of various reactor types, see !
Mathematical Modeling and ! Model Reactors
and Their Design Equations.
Enthalpy – temperature (H/T ) diagrams and
exergy analysis (formerly also availability anal-
ysis) are being increasingly used in conjunction
with simulation programs to optimize the energy
economy of the plant [57]. This is especially
worthwhile for processes with high heat turnover
or high compression ratios. Apparatus costs must
be determined separately.
The design of heat-exchanger networks is
based on analysis of the heat fluxes in the network
as a whole. One representative of such methods is
the Linnhoff ‘‘pinch’’ method, see ! Pinch
Technology. This technique uses the H/T dia-
gram with cumulative curves for the quantities of
heat dissipated and absorbed in various sections
of the plant at defined temperatures. The method
can be applied to utility systems and to the
integration of thermal engines [58]. Software is
available for the design of heat-exchanger net-
works by this method (e.g., HEXTRAN and
ADVENT). An alternative method for heat-ex-
changer/utility networks is based on the
mixed-integer method [59].
Synthesis-gas processes offer an example of
integrated loops. These reactions are mostly
exothermic, and an attempt is made to transfer
the excess heat of reaction to steam instead of
cooling water. Use of waste heat from gas
production to supply the heat required for gas
purification and converting processes has led to
Vol. 8
a variety of integrated loops with significant
reductions in operating costs, for example in
ammonia and methanol synthesis and in the
production of nitric, sulfuric, phthalic, and
maleic acids.
Another optimization possibility is the use of
heat pumps. The mechanical compression of
vapors and their condensation at higher pressure
offers interesting solutions with relatively low
investment costs, for example in the distillative
separation of components with similar boiling
points (e.g., such as ethylene – ethane and pro-
pene – propane).
The operability and economics of integrated
loops must be checked during process design.
This can be done by using LINNHOFF’s method of
heat integration analysis [60], [61].
Process Synthesis. The development of op-
timal combinations of unit operations is an itera-
tive process that is now carried out with the aid of
simulation programs. An advanced program per-
forms computer-aided process synthesis by au-
tomatically generating design variants and se-
lecting the best ones under consideration of
uncertain data, i.e., when material properties,
thermodynamic data, and kinetics of partial pro-
cesses are incomplete. Results can be applied to
some practical problems [62–64] especially to
heat-exchanger networks (HENs) and utility
systems.
The design of separation processes is much
more difficult because of the great number of
species present. Process synthesis has therefore
not reached a comparable level. A survey of the
design of column cascades appears in [65].
Optimization has to be customized for every
application, key points can be identified only by
economic and technical analysis of a process.
The boundaries between ‘‘routine’’ optimization
during process design and a special, supplemen-
tal optimization study are not clearcut. The
practical operability of a plant should never be
ignored. Overly complicated circuits, highly
complex control systems, dewpoints and corro-
sion limits that are too close together, and in-
creased maintenance costs can all wipe out cal-
culated cost savings.
Continuous optimization is needed through-
out the service life of a plant. Digital process
monitoring and control systems allow appropri-
ate data acquisition, storage, and archiving.
Chemical Plant Design and Construction 269
Process data processing systems print data in
the form of diagrams, graphs, and tables. They
are an indispensable aid in the commissioning
and optimal operation of plants. Process-based
simulation programs allow on-line and off-line
balancing and prompt detection of abnormal
occurrences.
3.3.3. Safety Aspects and Environmental
Control
In the following section the essential elements of
safety and environmental control are treated –
relevant to the design and construction of a
chemical plant, using Germany as an example.
The laws and decrees cited are only valid in
Germany, however, there are similar laws in
other countries, e.g., those issued by the EPA
and OSHA in the United States and the ‘‘Stoom-
wezen’’ in The Netherlands.
The materials present in a chemical plant,
their processing, and processing equipment con-
stitute a source of risk to persons and property in
the plant area and its surroundings. The level of
risk depends on the nature, extent, and probabili-
ty of occurrence of injury or damage [66]. Safety
engineering institutes measures that reduce (lim-
it) the risk to a degree acceptable to the public
require that:
1. Potential hazards must be identified
2. Effective safety standards against these ha-
zards must be established
3. The standards must be transformed to engi-
neering and/or management safety practices
4. It must be proved that the safety level meets
requirements
5. The effectiveness of the adopted measures
must be evaluated and improved [67]
Safety-related functions are the responsibility
of governmental supervisors, the plant operator,
and the engineering contractor. In approving the
plant, the regulatory authorities not only ratify
the safety objectives but also evaluate the scope
and quality of the safety measures. The operator
is responsible for correct execution of these
measures. The design and construction firms
must assist the operator in complying with the
standards [68–70].
270 Chemical Plant Design and Construction
3.3.3.1. Protection Against Emissions
The following important environmental protec-
tion goals are necessary for the approval of a new
plant and are therefore the concern of authority
engineering:
Landscape and Surroundings. The erec-
tion of a plant on a site not expressly intended
for industrial use can run into difficulties [71]. It
is also necessary to clarify in advance what
effects the plant will have on nearby residential
areas and what levels of emissions and noise are
acceptable in industrial areas [72–75].
The appearance of the plant must be appro-
priate for the surroundings. This factor is gov-
erned by restrictions on building height, design,
materials, color, the construction of visual bar-
riers, and landscape plantings.
Air Pollution. Pollution control begins with
the classification of hazardous substances and
prevention or minimization of emissions to the
atmosphere. Release under normal operating
conditions is prevented by using appropriate
design and process conditions (e.g., gas collec-
tion and recovery systems, use of low-polluting
burners, catalytic gas purification, use of high-
quality flange connections and seals) [76–78].
Safe operation of a chemical plant must be
ensured to prevent or minimize the hazard to the
surroundings. Possible sources of danger (acci-
dents) include release of large amounts of haz-
ardous substances (gases, liquids, solids), fire in
the plants, and explosions [72].
Safety aspects must be taken into consider-
ation in process design, plant layout, and equip-
ment selection; in the construction, operation,
and maintenance of the plant; and in the training
of plant personnel [69].
The ‘‘hazard and operability study’’ (HAZOP)
is often used and can reveal weak points in plant
equipment and operation while the facility is still
under design. This method of risk analysis has
been proven in years of use [79–81].
Wastewater. The wastewater generated in a
plant is collected and treated in systems classified
according to water quality (e.g., severely con-
taminated, moderately contaminated, uncontam-
inated, rain water). If the systems are properly
designed, the treated wastewater can be released
Vol. 8
into a system approved by the local authority
[82], [83].
Wastewater produced in case of fire (fire fight-
ing water) must be collected in a retention basin
whose capacity is usually sufficient to hold the
water used in 1 h against the design fire- case [84].
Soil. Soil protection is afforded by sealing
all plant areas that might be contaminated by
hazardous liquids or solids under normal operat-
ing conditions or in an accident [85].
Waste. ‘‘Waste’’ denotes all those sub-
stances and parts that cannot be recycled to the
production process or otherwise reused.
As early as the process selection step, special
attention must be paid to waste prevention be-
cause waste is difficult to dispose of. In large
chemical complexes, wastes from one process
can often be used as feedstocks in other proces-
ses. This alternative should be investigated close-
ly in feasibility studies performed at a very early
stage of the project [86–88].
3.3.3.2. Noise Control
The primary objectives of noise- control design
are in compliance with contractual and legal
provisions while ensuring that the plant is easy
to maintain and runs economically. Noise can be
controlled at the source by selecting low-noise
products and processes. Low-noise equipment
often has the welcome side effect that it offers
low energy consumption and longer service life.
Basic concepts and research in acoustics are
discussed as examples in [89–92].
Regulations. Noise- control regulations are
intended to protect the surroundings and the plant
personnel.
Protection of the Surroundings. The basis
for immission noise limits in Germany is the
Bundes-Immissionsschutzgesetz (Federal Im-
mission Control Act) and the TA L€arm (Engi-
neering Directive on Noise Control) contained in
it [93]. The directive lays down permissible
immission noise levels as a function of land use
(Table 2). The site of measurement varies; as a
rule, it is 0.5 m in front of an open window of the
residence. Regulatory practice has been to treat
the permissible levels cumulatively: if several
Vol. 8 Chemical Plant Design and Construction 271

Table 2. Permissible noise immission levels Design. The engineering firm must guaran-
Type of builtup area Standard value, dB(A)
tee compliance with noise regulations at the
workplace and in residential areas. The contract
Day Night should also stipulate the type of noise measure-
Exclusively industrial utilization 70 70 ment and the operating conditions at the time of
Mainly industrial utilization 65 50 measurement.
Equal housing and industrial 60 45 Planning for noise control begins in the pre-
utilization liminary design phase and continues through
Mainly housing areas 55 40
Exclusively housing, health 50 35 basic and detail engineering. The engineer must
resorts, and hospitals carry out the following activities:

1. Calculate the permissible sound level for the

plants emit to one receiver, the maximum level entire plant on the basis of the maximum
must be distributed among all the emitters. Fur- level allowed in the residential area and
thermore, if a plant is expanded, its permissible available studies on the workplace noise-
noise-level contribution must not be exceeded. level limits.
This approach ensures that the permissible total 2. List noise-producing components and estab-
noise level in the residential area is not exceeded. lish their permissible sound levels. Noise-
On the other hand, new plant sections are only protection practices are dictated by practical
approved if they meet strict noise standards. and economic considerations.
3. Prepare noise specifications (including per-
Protection of Plant Personnel. The basis for missible sound levels) as part of the bid
noise regulations at the workplace in Germany specifications for all noise-emitting
comprises the Arbeitsst€atten Verordnung (Work- equipment.
place Regulation) [94] and the relevant sections 4. Check the bids (e.g., for machinery, control
of the Unfallverh€utungsgesetz L€arm (Accident valves) to ensure that noise requirements are
Prevention Code) [95] which contain references satisfied.
to DIN standards and VDI guidelines. These 5. Compile specifications for silencers, hoods,
regulations set a maximum personal noise level and insulation; check bids and orders for
of 85 dB(A) for an 8-h shift and recommend the these items.
use of personal hearing protection above 85 dB 6. Compile noise specifications for the
(A). Personal hearing protection must be worn at building.
levels over 90 dB(A). 7. After the design is complete, write a design
The most important regulations for plant de- report on residential and workplace noise
sign follow: levels.
8. Inspect installation of equipment at the con-
struction site.
Measurement of noise at DIN 45 635 part 1,
machines and following parts
9. Measure noise levels of noise-generating
Average level and assessed level temporal DIN 45 641 equipment at the workshop where it is man-
fluctuating sound processes ufactured, and also later when it is installed
Sound propagation in the open VDI 2714 in the plant and the plant is on stream.
Assessment of working noise in the VDI 2058 sheet 1
neighborhood
10. Prepare a final report.
at workplace regarding danger to hearing VDI 2058 sheet 2
with regard to various occupations VDI 2058 sheet 3 Manufacturers of noise-generating equipment
Sound projection from industrial construction VDI 2571 have many ways of reducing noise. Examples
Noise from piping VDI 3733
Noise abatement for ventilation and air VDI 2081
follow:
conditioning plants
Personal soundproofing VDI 2560 Electric motors: Reduction of cooling air re-
Soundproofing by mufflers VDI 2567 quirement, use of low-noise cooling fans, use
Soundproofing by shielding VDI 2720
sheets 1 þ 2
of improved insulation.
Soundproofing by metal cladding VDI 2711 Control valves: Division of large-expansion
cross sections into smaller areas (perforated
272 Chemical Plant Design and Construction
cage), division of pressure release into multi-
ple stages, optimized flow control.
Air coolers and small cooling towers: Reduction
of rotor peripheral velocity, modification of
blade profile, increase in number of blades,
use of low-noise gears.
Pumps: Optimization of impeller design, avoid-
ance of cavitating conditions, reduction of
impeller peripheral velocity (below 45 m/s).
Steam generators and process furnaces: Low-
noise, forced-air burners; use of ceramic-fiber
linings on interior walls.
Compressors: Frequency- controlled drives,
low-noise oil systems, direct drives (no gears),
low-noise surge-limit control.
Important secondary practices of noise abate-
ment include:
1. Soundproof enclosures
2. Soundproof hoods and barriers
3. Soundproofing insulation on piping, ducts,
and machine housings
4. Silencers in the form of absorbers, resonators,
or combinations of both types
In most chemical plants, on-battery sound
pressure levels can be held to 85 dB(A) by means
of careful design. Large compressor sections are
an exception; levels up to 100 dB(A) can be
expected and such areas must be designated as
high-noise areas.
Investment costs for noise control normally
range from 0.5 to 3 % of total plant material and
installation costs. These percentages are ex-
ceeded if residential restrictions make it neces-
sary to enclose the entire plant.
Plant safety and reliability must not be im-
paired by noise- control measures. Low-noise
machines must therefore be preferred over loud
machines with soundproof enclosures. If hoods
or enclosures cannot be avoided, accessible areas
inside noise enclosures on gas-handling devices
must be provided with adequate ventilation, gas
alarms, and possibly fire fighting systems. Noise-
control barriers and shielding must not block
escape routes.
3.3.3.3. Occupational Safety and Health
The principal requirement in occupational safety
and health is that physiological and psychologi-
Vol. 8
cal burdens on the employees caused by working
and other conditions must be limited to a gener-
ally accepted level. Measures must also be taken
to prevent or control risks in case of an accident
[70].
The occupational safety and health authorities
have defined general conditions for ventilation,
lighting, and ambient temperatures at work-
places, protection against weather and noise, and
the safe use of traffic routes inside the plant.
Accident insurance regulations are especially
important for plant layout and process design of
chemical plants. These rules concern: harzardous
operations, work involving hazardous substances
[77], [78], use of special auxiliary equipment,
and ergonomic design of the workplace [96].
Suitably equipped ‘‘social’’ facilities such as rest
and changing rooms, washrooms, toilets, and
medical stations must also be included in the
design [94].
Warning of unavoidable dangers must be
given, and appropriate protective measures
must be instituted (e.g., signs marking fire or
explosion hazard zones and appropriate safe-
guards against ignition). Escape routes and
protected areas with emergency lighting, fixed
personal protection facilities (emergency
showers), and alarm systems must be provided
[94], [97].
Appropriate layout of buildings and apparatus
or enclosures around particularly dangerous
equipment help to minimize injuries and damage
[96].
Effective fire fighting measures include short
access routes as well as fixed or mobile fire-
extinguishing equipment with an assured supply
of extinguishing media and an adequate action
radius.
Occupational safety and health measures also
apply during construction of the plant. They
relate to the structural design and size of the
plant and the construction methods. As much as
possible of the equipment used in subsequent
normal operation of the plant must be available
during commissioning for protection of the
workers [96].
3.3.3.4. Plant Availability
Capacity and profitability calculations for a
chemical plant are normally based on 8000 h/a
on-stream (corresponding to roughly 330 d/a).
Vol. 8
Shutdowns are generally planned at intervals
of one or two years to allow cleaning of heat
exchangers, apparatus, and piping; charging of
new catalysts and chemicals; replacement of
worn mechanical parts; and prescribed inspec-
tions by regulatory authorities.
Unplanned shutdowns are usually caused by
mechanical defects or automatic emergency
shutdowns when operating parameters are out-
side the limits for normal plant operation.
Important items of equipment are duplicated
(standby equipment) to ensure continuous oper-
ation between scheduled shutdowns. This is
standard practice for continuously operated
pumps and reciprocating compressors. Standby
turbine compressors are not necessary because of
their longer maintenance intervals. In auxiliary
systems (e.g., the lubrication system), however,
the necessary reliability is provided by installing
standby pumps and filters.
If operating conditions make regeneration or
cleaning necessary during production, standby
equipment is again used (e.g., fixed-bed reactors,
molecular-sieve adsorbers, dryers, and filters).
Piping (as used to convey suspended solids or
powders) may be susceptible to plugging. Instal-
lation of standby piping or flushing connections
may be desirable.
Measures to ensure reliable plant operation
during power outages must be considered at an
early stage (emergency planning).
The drives of important process equipment
(e.g., cooling-water pumps, instrument-air com-
pressors, boiler feedwater pumps) are usually
dual (electric motor plus steam turbine).
Emergency power-generating units are need-
ed to maintain safety-relevant drive and control
functions (including emergency lighting, com-
munication facilities, and computer-aided pro-
cess control systems) during power outages. In
the case of particularly critical equipment, a
separate power source (e.g., battery, instru-
ment-air reservoir, nitrogen reservoir) must be
provided to bridge the startup time of the emer-
gency generator.
Control functions and process control systems
play a vital role in reliability and safety. Relevant
process parameters and the points where they are
to be measured must be defined during process
design so that indicators and alarms will warn the
operating personnel promptly whenever operat-
ing conditions become abnormal.
Chemical Plant Design and Construction 273
Allowance must also be made for operator
error so that consequential damage (e.g., over-
heating or pressure buildup in uncontrolled
exothermic reactions) can be avoided. Auto-
matic emergency-shutdown devices are pro-
vided for such cases. They are often redun-
dantly included in both the measurement and
shutdown systems. They must be regularly
inspected by the plant operator or the regula-
tory authorities.
3.3.3.5. Authority Engineering
The construction and operation of chemical
plants are affected by many legislative provi-
sions and regulations that are concerned with
environmental protection and plant safety [68].
These requirements have major consequences
for plant design and construction. It is no
longer sufficient to comply with all laws,
standards, and specifications applicable to a
given plant at a given site. Instead, a formal
approval process, usually with public partici-
pation, must be gone through in the design
phase. Only then can construction of the plant
begin [98], [99].
The length of the approval process depends on
the type of plant, the environmental sensitivity of
the plant site, and the nature of the approval
procedure. Another important point is whether
the project involves expansion of an existing
facility or an entirely new ‘‘grass-roots’’ plant
on a previously nonindustrial site.
The time taken for an application for a con-
struction permit to be approved is usually six
months to a year, but sometimes longer. This is
preceded by a lead time of about a year, during
which the conditions for the plant are discussed
and preliminary talks are held with the regulatory
authorities. The total span from the investment
decision to groundbreaking is therefore about 1.5
years. This is a substantial fraction of a total
project duration of 2 – 3 years.
The granting of construction and operational
permits requires close collaboration between the
plant owner, the engineering firm, and the au-
thorities (Fig. 11). All activities aimed at devis-
ing an approved plant concept are grouped under
the heading ‘‘authority engineering’’ and are
usually the responsibility of the engineering firm.
Typical activities carried out during the design
phase are listed below.
274 Chemical Plant Design and Construction
Figure 11. Principle flow scheme of German authority approvals procedure
Feasibility Study/Preliminary Design.
The feasibility study and preliminary design
include technical and economic optimization of
the process with minimization of environmental-
ly harmful factors. The following parameters are
established
1. Nature and quantities of substances present
2. Waste and residues
3. Wastewater
4. Emission of air pollutants
5. Type and design of plant equipment
6. Nature (open or closed) of processing
systems
7. Safety and reliability standards [77], [78]
As soon as site selection is complete, the
following questions must be answered:
1. Which authorities are responsible for approv-
ing the construction and operation of the
plant?
2. Which laws must be observed?
Vol. 8
3. Which regulations, especially local ones,
must be complied with?
4. What is the public opinion at the intended
location?
5. Has any nearby project gone through appro-
val proceedings recently? If so, with what
result? How much time did the proceedings
take?
6. Will special restrictions over and above nor-
mal legislation and regulations apply to the
site? [75], [100], [101].
In order to clarify these points, informal contact
with the regulatory authorities should be initiated
as soon as the initial concept of the plant is set.
Process Design/Basic Engineering. Re-
sults obtained during the preliminary phase are
used for process design/basic engineering (e.g.,
for planning off-gas collection and combustion
systems and wastewater systems). A preliminary
safety analysis may be useful to identify potential
risks (e.g., threat to the environment due to
Vol. 8
release of substances, or risk to the plant due to
hazards in the vicinity). This kind of analysis is
called an environmental impact study [73]. The
results of such an analysis may influence the plant
layout [72], [75].
Detail Engineering, Construction, and
Commissioning. Many authority engineering
activities take place in the detail engineering
phase. They include:
1. Preparation of project documentation
2. Preparation of a detailed safety analysis
3. Engineering escort duty during approval
proceedings
4. Implementation of design changes required
during approval proceedings
5. Management of partial approval procedures
that take place in parallel with the main
approval procedure
6. Selection of experts and technical cooperation
with them to clarify detail questions raised
during approval proceedings
The activities of engineering and authority
engineering must be well coordinated if the
progress of work at the construction site is not
to be held back.
An important point for the success of a
project is that the engineering activities con-
cerned with early civil work activities should be
taken care of early. This is especially important
for the plot plan and buildings; escape, emer-
gency and access routes; and fire fighting
concept.
The authorities grant partial approvals (e.g.,
for civil work, erection, and commissioning of
plant sections) so that progress is not unneces-
sarily delayed. They also check that relevant
regulations and provisions are observed during
construction and installation. When construction
is complete the entire plant is examined by the
authorities. Deficiencies must usually be reme-
died immediately. The authorities only grant
permission for commissioning when the accep-
tance report has been made.
During commissioning proof of compliance
with approved levels of emissions, wastewater
values, etc. must be submitted. Measurements
are difficult to perform and time consuming. If
improvements to the plant are required at this
stage, they may be very expensive.
Chemical Plant Design and Construction 275
3.4. Basic Engineering
The focus has so far been on process design
(process flow diagrams and parameters such as
operating temperatures and pressures and flow
rates). Now the geometric dimensions of indi-
vidual equipment items, the design temperatures
and pressures, the materials of construction, and
the layout of the entire plant must be established.
(The main elements of basic engineering docu-
mentation are described in Section 5.1).
3.4.1. Equipment Specification from the
Process Engineering Standpoint
Equipment dimensions and capacities are dictated
by the process. Data from the process flow sheet
can be used for the sizing of process equipment,
machinery, piping, etc. Examples of data that can
be derived in this way are the diameter, number of
trays, and tray spacing for distillation towers.
These design data are entered in process engi-
neering data sheets (Fig. 12) that contain all
relevant specifications for the specialist engineer.
For example, the data sheet for process equipment
includes a schematic drawing with overall dimen-
sions, operating and design pressures and tem-
peratures, number and nominal diameters of noz-
zles and manholes, material of construction, cor-
rosion allowance, insulation thickness, etc.: in
short, the information that the equipment design
engineer needs in order to perform strength cal-
culations and prepare a more detailed drawing.
For pumps, the data sheet must show normal,
maximum, and minimum flow rates, inlet and
outlet pressures, operating temperature, material
of construction, type of medium, and physical
properties of the medium. On the basis of this
information the mechanical engineer can select
the optimal pump with the best efficiency.
Specifications are prepared similarly for con-
trol systems, safety valves, and all other items of
plant equipment. The nominal diameters of pip-
ing are calculated for the specified flow rates,
physical properties of the streams, and economi-
cally acceptable pressure drops.
3.4.2. Materials of Construction
See also ! Construction Materials in Chemical
Industry.
276 Chemical Plant Design and Construction Vol. 8

Figure 12. Data sheet with process information for a deethanizer

Vol. 8
Materials of construction in chemical plants
must be able to withstand mechanical, chemical,
and thermal stresses and must not be attacked by
the medium with which they come in contact.
Two criteria must be met:
1. Materials must be approved for use in pres-
sure-bearing parts under the pertinent regula-
tions, i.e., their guaranteed values, processing,
and permissible service conditions are defined
and can be reproduced at any time.
2. Materials must be suitable from the corrosion
standpoint. Their behavior and properties
should show little or no change under the
action of the media with which they come in
contact.
Material selection should be solved by close
collaboration between the materials specialist,
the designer, and the process engineer or chemist
[102–109]. The materials most commonly em-
ployed in process engineering are unalloyed,
low-alloy, and high-alloy steels. Both solid steel
and cladded steel fabricated by rolling, weld
overlaying, or explosion bonding are used in
vessels, towers, heat exchangers, storage tanks,
piping, and other equipment.
Stresses. Materials of construction must
withstand temperatures from ca.  180 to
1100  C and pressures from vacuum to several
hundred bar.
The selection of a material is dictated by three
criteria: mechanical stress, thermal stress, and
chemical attack. Seldom do these three types of
stresses occur singly; the usual case, in which two
or all three are present at once, governs material
selection.
The most important ferrous materials used in
plant construction, are the following steels:
Predominantly mechanical stress:
Structural steels
Fine-grained structural steels
Quenched and tempered steels
Steels for low-temperature service
Coexisting mechanical and thermal stresses:
Steels for high-temperature service
High-strength alloy steels for high-tempera-
ture service
Heat-resisting steels
Chemical Plant Design and Construction 277
Steels for hydrogen service at elevated tem-
perature and pressure
Chemical attack together with thermal and me-
chanical stresses:
Ferritic chromium alloy steels
Austenitic chromium – nickel steels
Ferritic/austenitic steels (duplex steels)
The selection of steels for predominantly
mechanical stress depends on strength, tough-
ness, and weldability. States of mechanical stress
in individual parts are often incompletely known.
Design is therefore based on approximate rules
derived from simple loading modes (tension,
crushing, bending). The time dependence of load
(e.g., static or cyclic) must also be considered.
The operating pressure, operating tempera-
ture, and number of load cycles are crucial for
strength calculations of apparatus and piping.
The temperatures determine the strength (yield
point). The use of fine-grained structural steels,
with higher yield points than normal carbon
steels allows design of equipment with thinner
walls and thus results in significant savings in
weight and welding work.
Equipment must be sized so that it does not
fail by ductile fracture, brittle fracture, fatigue, or
creep (Table 3).
The choice of steels for chemical service, or
where chemical attack occurs together with ther-
mal and mechanical loads, is difficult because
several types of corrosion are possible, each
resulting in a different type of failure. The prob-
lem of material selection in this case is often very
complicated because corrosion is due to multi-
component systems.
Alloys. Corrosion-resistant alloy systems
have been developed which form a passive layer
that affords protection against corrosion. Such
alloys must remain stable during subsequent
treatment (e.g., welding) so that phase precipita-
tion does not affect the passivity of the material.
The most commonly used alloy systems for
chemical plant construction are those based on
iron, nickel, and copper. Figure 13 shows these
three groups schematically, with the maximum
concentrations of the alloying elements singly or
in combination. A great number of alloys with the
desired properties can be produced with these
systems.
278 Chemical Plant Design and Construction Vol. 8

Table 3. Nature of failure of materials

Nature of fault Cause Measure

Ductile fracture unacceptably high loads calculation with elasticity limit or safety correction values
Brittle fracture stress also below the permissible elasticity calculation of the brittle fracture safety with fracture
limit by influences from mechanical values on the basis of
1) multiaxial state of stresses the combined effect of material faults and
2) thermal stress stresses
3) state of material highly dependent on
4) state of defect 1) material production
5) geometry of component 2) quality of manufacture
3) fault finding and
4) fault description with nondestructive testing
Fatigue introduction of crack and crack propagation calculation with conventional strength values for
by alternating stress alternating stress (e.g., fatigue limit) taking into account
all stresses as with the danger of brittle fracture
fatigue crack propagation at existing fault sites consideration of mechanical fracture principles and
their mathematical utilization
Creep, time interval time-dependent deformations and fractures at high 1) calculation with creep strength
temperature and stresses below the 2) calculation of time yield limit
elasticity limit 3) crack propagation by existing defects

Other metals and alloys used in plant con-
struction are aluminum, titanium, zirconium, and
tantalum. See also ! Construction Materials in
Chemical Industry.
Figure 13. Alloy systems most commonly used in chemical
plant construction
Corrosion. For a detailed description of
corrosion, see ! Corrosion, 1. Electrochemical,
! Corrosion, 2. High-Temperature. Corrosion
phenomena (e.g., selective corrosion, diffusion,
crevice corrosion, and pitting) must be given
special attention but are not amenable to design
calculations.
The most frequent form, general corrosion,
can be dealt with by appropriate corrosion al-
lowances of ca. 1 – 5 mm. The corroded mate-
rial must not, however, interfere with the process
or affect the product (discoloration or flavor
changes in the pharmaceutical, beverage, and
food industries).
Charts, tables, empirical values, and proces-
sing guidelines are available for material selec-
tion according to corrosion criteria. Carbon
steel, for example, is attacked only slightly by
water, but severely by water in the presence of
air. Pitting occurs if air-containing water is
heated, or if oxygen is present in steam and
condensate piping; this often rules out the use of
carbon steel. Although stainless steels resist
many media, they also suffer pitting or stress
corrosion cracking in the presence of halogen
compounds.
Material selection has to take into account
both the chemical nature and the flow of the
medium. Rapid motion of a liquid along a pipe
wall can accelerate corrosion, whereas a protec-
tive film often forms on the surface when the
velocity is low.
Vol. 8
Intergranular stress corrosion cracking may
be caused, for example, by alkaline solutions
above 100  C under pressure in welded vessels
of unalloyed steels.
Transgranular stress corrosion cracking can
occur in equipment made of austenitic Cr – Ni
steels, while crevice corrosion results from im-
proper fastening of tubes in tube sheets; these
types of corrosion are both accelerated by vibra-
tions (corrosion fatigue).
Electrolytic corrosion can take place when
metals widely separated in the electrochemical
series (e.g., copper, iron, and aluminum) are not
insulated from one another in the same piece of
equipment apparatus and come in contact with
conductive liquids.
Other corrosion-related problems are hydro-
gen embrittlement, embrittlement at low temper-
ature, and high-temperature corrosion.
The same degree of corrosion protection can
often be obtained with several materials. In such
cases, price, service life, and profitability must be
balanced [110].
Costs can be saved by applying more noble
materials as a coating or cladding. Electro-
plated coatings cannot be employed in chemi-
cal plant apparatus because they do not offer
long-term protection. Claddings of nonferrous
metals, their alloys, or austenitic steels can be
used if the contact between the corrosive
stream and the load-bearing steel shell of an
apparatus can be prevented by appropriate
design.
In simpler cases, plastic coatings can be em-
ployed in place of cladding. Stoving finishes
(duroplastic) have proved suitable for contami-
nated cooling water and weak acids in heat
exchangers (service up to 240  C). Polytetra-
fluoroethylene coatings are highly resistant to
acidic and alkaline substances (up to 300  C).
Rubber and hard rubber, respectively, are effec-
tive against weak acids and salt solutions up to ca.
þ 100  C. It should be kept in mind that plastic
coatings tend to swell and unbond in the presence
of organic substances, especially at elevated
temperature.
3.4.3. Plant Layout
The layout becomes a high-priority item during
basic engineering [111].
Chemical Plant Design and Construction 279
For large plants, the planner begins with
1: 500 layout sketches that merely show the
space required for individual units. Such prelim-
inary layouts are used to determine the most
expedient arrangement with possible transfer
points at battery limits for material and energy
streams. Conventional layout techniques employ
adhesive films and overlaying of transparent
sketches; PC and CAD programs are also finding
use.
The layout should include approximate data
on the positions and sizes of storage areas for raw
materials, intermediates, and end products, as
well as pipe bridges, roads, underground piping,
and sewerage. Control room and electrical sub-
stations, compressor buildings and service facil-
ities, and road and rail connections are shown
with their overall dimensions. The accessibility
of plant equipment for repair and maintenance,
construction aspects, safety, and inspection must
be considered from the very start. The conse-
quences of later expansion must also be taken
into account.
If the existing information is adequate, the
layout should be drawn to scale. The layout and
the process flow diagram then permit assessment
of the production sequence, mass transport, and
storage (Fig. 14).
On the basis of the layout and specifications,
buildings should be inserted next as needed
(ground plan, number of floors, height between
floors).
Layout Model. The layout can also be made
into a block model (Fig. 15). Layout models have
proved especially useful for complicated instal-
lations such as refineries and petrochemical
plants. They convey a general impression of the
final appearance of the plant, even at an early
stage. Approximate 1 : 100 or 1 : 50 models of
equipment items are made of foamed polystyrene
or a similar material and can then be moved
around to establish suitable positions and
spacings.
The layout model includes steel structures
but does not cover the details of pipe runs. It
mainly serves as a basis for discussion, permit-
ting a number of fundamental questions to be
clarified.
At this stage of basic design (at the latest),
the design engineer is thus able to decide which
parts of the plant will be outdoor or enclosed
facilities, and whether it will be on one or more
280 Chemical Plant Design and Construction Vol. 8

Figure 14. Plant layout plan

a) Steam generation; b) Process steam generation and fuel oil system; c) Oil wash with dispersed oil separator; d) Propene –
propane separation; e) Debutanizer; f ) Depropanizer; g) Deethanizer; h) Condensate and slop system; i) Hydrogen
methanization; j) Hydrogenation; k) Propene refrigeration; l) Ethylene refrigeration; m) Charge gas compressor; n) Caustic
wash; o) Water wash with gasoline stripper; p) Cracking furnaces; q) Substation, transformer station; r) Control room;
s) Social facilities; t) Ethylene – ethane separation; u) Charge gas dryer; v) Acetylene conversion; w) Demethanizer;
x) Cold box; y) Compressor house; z) Pumps, compressors

levels. A process plant should be outdoors
unless there are pressing reasons to enclose it.
This allows substantial savings in construction
costs; machinery and equipment remain more
accessible; and the danger of fire and explosion
is reduced for processes involving flammable
materials. The outdoor setting, however, entails
more expense for shelter against weather, heat,
and cold.
For some types of plant equipment, the layout
criteria are nearly always the same. For example,
turbocompressors, reciprocating compressors
and their drives; coolers and oil circulation lines
should be located in sheds or compressor build-
ings. Pumps, in contrast, are usually placed out-
doors; they are installed in pump houses only if
this is necessary on environmental grounds (e.g.,
for noise protection).
Production facilities that are sensitive to am-
bient conditions (e.g., film and fiber production,
paper mills, pharmaceutical plants, catalyst
plants, packaging facilities) must be set up inside
buildings. Raw materials and products that are
sensitive to moisture and sunlight must be stored
in covered areas or enclosed buildings.
In contrast to the solidly constructed buildings
required in Europe, buildings in tropical regions
can be lightly constructed. Sheds open on two
Vol. 8
Figure 15. Layout model (hydrocracker complex), courtesy of Lurgi AG
sides, affording protection against wind and rain
only, may be adequate if the process does not call
for climate control.
3.4.4. Preliminary Piping and
Instrumentation Diagram
A piping and instrumentation diagram, based on
the process flow diagram, is needed for more
accurate calculations at the preliminary design
stage. For the basic engineering package it should
contain the following information:
1. All equipment and machinery, drives, piping
or transport routes, and fittings (including
installed spares)
2. Nominal diameter, pressure, material of con-
struction, and design information of piping
3. Field instruments, control devices, and con-
nections between them
4. Special fittings required for process control
and safety, e.g., check valves, safety valves,
level gauges, condensate drain lines
Chemical Plant Design and Construction 281
5. Significant dimensions of equipment and
machinery
6. Essential data on materials of construction
3.5. Calculation of Plant Costs
Once the engineering documents for the calcula-
tions at the requisite accuracy are available, plant
costs can be determined. It is useful to employ a
scheme as shown in Table 4 for this. A ‘‘stan-
dard’’ scheme has been proposed by ARIES and
NEWTON [112] and other authors. The calculation
is subdivided into three groups of items: equip-
ment, bulk materials, and indirect costs; each has
to be calculated differently.
The equipment group includes all itemized
plant equipment such as towers, reactors, and
heat exchangers, vessels and machinery that are
calculated ex factory without packaging. These
items are normally specified individually in en-
gineering design allowing a rapid, detailed, pre-
liminary calculation to be made.
The bulk materials group covers items such as
pipes, control systems, electrical equipment and
282 Chemical Plant Design and Construction Vol. 8

Table 4. Example of a calculation scheme for plant costs as a whole and cannot be determined until the
Designation % of 1 % of 1 % of 1 % of 1
equipment and bulk materials costs are known.
þ2 to 3 to 4

Equipment
Columns 12.5 7.4 4.7 3.4
3.5.2. Equipment
Reactors 6 3.5 2.2 1.6
Heat exchangers 22.5 13.3 8.4 6.1 Because most pieces of equipment are ‘‘tailor-
Tanks 18 10.6 6.7 4.8 made,’’ manufacturers’ price lists are not often
Furnaces 10 5.9 3.7 2.7
Machines 26 15.3 9.6 7
available for cost calculations. The best way to
Other equipment 5 3 1.9 1.4 get accurate prices is to submit enquiries to the
Total 1 100 59 37.2 27 manufacturers. This can be done on the basis of
Bulk material the design specifications, but applicable stan-
Steel structures 8.3 4.3 3.1 2.2
Piping 25 14.7 9.3 6.7
dards (e.g., DIN or ASA), design specifications,
Control systems 15 8.8 5.5 4 and acceptance conditions (e.g., AD-Merkblatt
Electricals 9.5 5.6 3.5 2.5 documents, ASME Code, TÜV, Lloyd’s) must
Noise abatement 0.7 0.4 0.3 0.2 be indicated. Such inquiries are, however, time-
Catalysts 2.5 1.5 0.9 0.6
First charges 1.2 0.7 0.4 0.3
consuming and make a great deal of work for the
Spare parts 7.5 4.4 2.8 2 vendors; they are accordingly unwelcome.
Total 2 69.7 41 25.8 18.5 Therefore inquiries are only made with compli-
Total 1 þ 2 100 cated equipment and machinery. Simpler items
Package units
Erection (including 43 27 19.5 are estimated on the basis of in-house documents.
material for An engineering firm normally has a data base
insulation containing important data (including weights
and painting) and prices) on all equipment and machinery
Civil work 16 10 7.2
Total 3 59 37 26.7 covered by orders and inquiries in recent years.
Total 1 þ 2 þ 3 100 The data base must be kept up to date, this
Other costs requires close cooperation with the purchasing
Packing 3 2.2 department. Armed with such a system, the firm
Transport 2 1.4
Insurances 1.5 1.1 can make fairly accurate estimates, for example,
Planning costs 14 10.1 of the cost of heat exchangers per square meter or
Supervision of 5 3.6 per kilogram, given the size, type, pressure, and
construction material of construction. The same holds for
Commissioning 4 2.9
Allowance for 4 2.9 towers, reactors, and vessels; here also the size,
inflation pressure, temperature, and material must be
Unforeseen 5 3.6 known. The costs of simple machinery can be
Total 4 38.5 27.8 determined similarly. The use of computer pro-
Total 1 to 4 ¼ 100
project costs grams makes it an easy matter to calculate the
weights of equipment items.
Before such prices are incorporated into the
estimate, correction factors must be determined
materials, insulation, and paint. Exact determi- so that current prices can be obtained. There are
nation of these costs is expensive and time con- two reasons for such a correction:
suming and can be done only on the basis of
detailed material takeoffs (MTOs). This group 1. The figures stored in the data base cannot be
also takes in civil work, structural steel and completely up to date, and there may be a lag
erection work. of half a year or more before the order is issued
2. Purchase prices depend not only on market
Other Costs include engineering, procure- trends but also on the economic situation of
ment, construction supervision, commissioning, the manufacturer
travel costs; price inflation during the construc-
tion period; insurance, duties, and contingencies. The use of such a data base system necessi-
These items can be only calculated for the project tates the availability of appropriate cost-index
Vol. 8
figures for price adjustment. More information
on cost-index figures is given in Section 2.2.1.5.
3.5.3. Bulk Materials
Provided the engineering documentation (layout,
piping and instrumentation diagrams etc.) is
exact enough (see Fig. 7, Section 3.1), bulk ma-
terial costs can be calculated fairly accurately by
applying unit prices (per piece, m, m2, m3, kg,
etc.) to material takeoffs. Installation costs are
also derived from takeoffs classified according to
functional disciplines (unit prices for construc-
tion activities plus costs of site preparation,
erection equipment, materials, etc.). If unit prices
from an in-house data base system are used for
bulk materials, they must be adjusted in the same
way as equipment prices (see Section 3.5.2).
Another option is to obtain detailed current
unit prices from the manufacturers or construc-
tion contractors. This method yields accurate
results, but is time consuming and involves high
costs. It should therefore be employed only when
a highly accurate estimate is needed.
The engineering documents available in the
design stage are usually incomplete. The trend in
bulk materials estimation is therefore toward
applying multiplication factors to the estimated
total equipment costs. The latter can be obtained
only, however, by analyzing projects already
realized. In order to achieve satisfactory accu-
racy, separate multiplication factors must be
derived for each plant type and each process.
The larger the number of facilities evaluated, the
more accurate are the multiplication factors. The
percentages given in Table 4 represent multipli-
cation factors for the individual cost items of a
typical chemical plant; normally, material and
construction costs for a bulk item are determined
separately. Other multiplication factors are pub-
lished in [7].
If the required accuracy is 4
10 %, how-
ever, these two estimation approaches are
combined.
Civil Work and Structural Steel. For
structures such as compressor houses, control
rooms, laboratories, and workshops the enclosed
volume is usually determined and the costs esti-
mated by using unit costs. In the case of adverse
soil conditions or heavy structures, it may be
Chemical Plant Design and Construction 283
necessary to perform a preliminary static calcu-
lation so that the foundation size and/or the
number of piles needed can be determined more
accurately. The other civil-work items are often
handled by means of multiplication factors.
The same holds for structural steel, although
here the costs are found in terms of the weight and
the price per tonne for heavy, medium, and light
steel construction.
Control Systems. The trend toward plant
automation and increasingly strict safety stan-
dards have increased the contribution of control
systems to plant costs. The degree of sophistica-
tion of the control system of a chemical plant
depends strongly on the future operator. Accord-
ingly, it is often impossible to work with general
multiplication factors. Costs are therefore calcu-
lated from the number of control circuits, re-
quired computer capacity, number of displays
and control panels, etc. Multiplication factors are
used only for installation materials.
Electricals. Since the number and sizes of
electric motors are normally known from the
detailed equipment estimate, it is relatively
simple to determine cost-intensive electrical
items such as motors, transformers, switchgear,
and cables. Costs for other items, such as
grounding, lightning protection, lighting, and
installation materials are handled with multipli-
cation factors.
Erection. The determination of equipment
installation costs on the basis of unit-weight
formulas gives adequate accuracy; it is also
simple because the cost of major equipment
(other than machinery) is usually based on
weight. A similar method can be used for ma-
chinery, but the calculation process is often
divided into equipment setting (unit-weight for-
mulas) and equipment alignment (hourly basis).
Installation costs for bulk material items (e.g.,
control systems, electrical, insulation, and paint)
and for catalysts and first charges are usually
determined by applying multiplication factors to
the material costs.
The civil work discussed above normally in-
cludes installation costs. Erection costs for struc-
tural steel are established on the basis of unit-
weight installation formulas and subdivided into
heavy, medium, and light steelwork.
284 Chemical Plant Design and Construction
Serious difficulties arise in the accurate esti-
mation of piping installation because the exact
material takeoff and the exact routes of pipe runs
are seldom known. The labor cost of installation
depends on the number of welds and flange
connections, pipe diameters, wall thicknesses,
materials of construction, and installation
heights. Estimation is therefore done with unit-
weight prices tabulated for each nominal diame-
ter or nominal-diameter group. A separate calcu-
lation is needed for each material of construction.
Installation costs can also be estimated from
the number of welds per meter of straight pipe
and the nominal diameter but this requires de-
tailed knowledge of the piping design.
Vendors normally offer package units, such as
cooling towers and refrigeration units, including
installation; the entire scope of supply and in-
stallation costs given in the bid specifications can
therefore be incorporated in the calculation as a
lump sum.
The calculation of the construction of a plant
must also cover the costs of site preparation,
utilities, construction equipment, transportation
equipment, scaffolds, site roads, fencing, secu-
rity, first aid, and other items.
3.5.4. Other Costs
Bulk material costs are commonly determined
for each section of the plant, whereas ‘‘other’’
costs are calculated for the project as a whole.
Multiplication factors are employed for items
such as packaging, shipping, insurance, price
escalation, and contingencies.
Before the contingency factor is established, it
is necessary to make certain that the calculations
for the various functional disciplines do not
contain any multipliers of this type, since other-
wise contingency amounts grow out of control.
Engineering, procurement, construction supervi-
sion, and commissioning costs are, however,
usually determined individually.
Engineering and Procurement Costs. In
addition to the approximate method of obtaining
engineering and procurement costs by applying
multiplication factors to plant costs, two more
accurate methods are available: calculation of
engineering hours and procurement hours on the
basis of equipment items or the documents to be
Vol. 8
prepared for each functional discipline. The latter
is more accurate.
Itemized Equipment Approach. The num-
ber of hours per equipment item can be referred to
the work done on each item; all equipment items
are then added together with multiplication fac-
tors for other functional disciplines. Alternative-
ly, a total number of hours per equipment item
can be determined for all functional disciplines.
This total number of hours varies widely, de-
pending on the processes employed, the scope of
authority engineering, and existing design docu-
ments. It generally lies between 600 and 1200 h
per equipment item. This method can be used
only if experience has been gathered with exist-
ing plants of the same type.
Calculation Based on Documents to be
Prepared. The estimation of man-hours based
on the number and size of drawings and docu-
ments presupposes a great deal of experience in
project execution and the availability of docu-
ment breakdowns from earlier projects (includ-
ing empirical figures for the hours spent on all
other activities, such as procurement and expe-
diting, dealing with vendors, and inspection of
equipment). This procedure also calls for an
exact definition of the individual services (ser-
vice catalog) so that the various functional dis-
ciplines can be clearly isolated from one another.
In practice, a blend of the two methods of calcu-
lation is often used.
After the man-hour requirements for engi-
neering and procurement of a project have been
determined, they are subdivided into categories
and multiplied by appropriate hourly rates to
determine the costs. Travel, communications,
reproduction, computer costs, and the cost of the
model must be added.
Construction Supervision Costs are often
obtained by applying multiplication factors to the
equipment and bulk materials groups or to the
engineering hours. A better, slightly more com-
plex method is to determine the costs on the basis
of construction and manpower schedules.
The manpower schedules include supervisory
personnel for the functional disciplines used by
the operator and the engineering contractor; also
the installation specialists provided by the man-
ufacturers of complex apparatus, machinery, and
package units; and supervisory personnel, if any,
assigned by the licenser.
Vol. 8
In contrast to engineering costs, estimates are
based not on hours but on person-days and daily
rates. These rates normally include accomoda-
tion and food costs for personnel. The calcula-
tion must also cover overtime, travel expenses,
and costs for the construction office and its
operation.
Commissioning Costs. The costs of
commissioning relate to the time from the end
of erection to the start of production. They are
also classified as investment and must therefore
be incorporated into the estimate. Commission-
ing usually lasts one to three months, but up to six
months for very large multistage plants. This cost
group includes the following items:
Personnel Costs. Personnel costs are gener-
ally determined in the same way as installation
supervision costs.
1. Operating personnel on a rotating shift
basis
2. Laboratory personnel on a rotating shift basis
3. An on-call installation crew who remedy
mechanical problems and/or reinforce the
shift crew in the workshop
4. Specialists assigned by vendors for commis-
sioning special equipment and machinery
5. Consulting or supervision by licenser’s
personnel
6. Possible increased deployment of process and
specialist engineers from the operator’s engi-
neering department
7. Consultation or supervision by personnel be-
longing to the engineering contractor
Other Commissioning Costs. These costs
have to be estimated case by case. For routine
processes where most products are directly mar-
ketable, raw material, auxiliary, and fuel costs
can be virtually neglected. In larger, more inno-
vative plants running difficult processes, these
costs may be very high. Further difficulties may
arise if the market for a new product has to be
created. Other commissioning costs are divided
into
1. Training of company personnel (possibly in
the licenser’s facility)
2. Raw materials and auxiliaries as well as utili-
ties needed to replace defective charges or
product not up to specification
Chemical Plant Design and Construction 285
3. Travel expenses for personnel not belonging
to the company
Indirect Costs. Other indirect costs can ac-
count for a large portion of investment costs.
They are:
1. Licensing fees
2. Land costs
3. Land development costs
4. Fees for government inspections and
approvals
5. Financing costs
6. Administrative costs and costs for possible
expansion of sales organization to market the
product
7. Public relations work to inform the public
about the new plant
8. Working capital, such as raw materials stocks
and finished product storage
3.6. Conclusion of Preliminary Design
Phase
The last step in preliminary design is the prepa-
ration of a report containing the following
information:
1. The updated feasibility study.
2. Profitability calculation with graphs of accu-
mulated revenues and expenses, the break-
even point, and profits (similar to Fig. 6,
Section 2.3.1). If a clear decision in favor
of one of the alternative investments is pos-
sible, the profitability calculation is limited
to a single proposal. If, however, entrepre-
neurial questions figure in the analysis, the
report should include the two best alterna-
tives.Inaccuracies in the primary documents
and the amounts added to allow for these
should be established and specified in all
calculations.
3. Schedule for financing requirements.
4. Schedule for personnel requirements.
5. Time schedule for the phases of execution up
to the start of production.
6. The project manual containing all the studies
and results from preliminary design (basic
engineering documentation), including the
estimate.
286 Chemical Plant Design and Construction
4. Contract Writing and Forms of
Contracts
4.1. Licensing Agreements
Process development has become so expensive
that development costs can seldom be covered by
royalties. Aside from government-funded re-
search, new processes are developed chiefly by
production-oriented chemical companies or pet-
rochemical concerns, which regard license fees as
incidental income. In cases where engineering
firms hold licensing rights, they either arise from
license agreements with production companies or
represent improvements to established processes.
Licensing agreements may relate to patent
licenses (rights to use granted patents, Sec-
tion 4.1.1), process licenses (which include pat-
ent rights and all know-how, Sections 4.1.2 and
4.1.3), and straight transfers of know-how for
processes not protected by patent (Section 4.1.4).
4.1.1. Patent Licenses
Suppose chemical company A has developed a
process that is under patent protection but is
wholly or partly covered by the earlier protection
of chemical company B. Company A will seek to
join B by exchanging patent rights, a mutual
grant of rights to use the patents, or the purchase
of a patent license from B. Usually, company B
asks for compensation in an amount that depends
on the age, the importance of its rights, and the
degree of overlap. This fee only covers the
particular use in question. The licenser does not
disclose experience above and beyond the pub-
lished contents of the patents. If the fee asked is
too high for A or there are doubts about the
validity of B’s patents, then in the absence of an
agreement A can either seek to have the courts
declare B’s patents invalid or can disregard them
and risk legal action by B.
4.1.2. Process Licenses
As a further example, B has plant-scale experi-
ence while A only has experience with a pilot
plant for the same or a similar process. Even if the
new process is clearly an improvement, it is
expedient for A to purchase B’s experience
Vol. 8
because inevitable setbacks and lost time on
going from the pilot plant to a first production-
scale facility (‘‘scaleup risk’’) usually cost more
than a process license.
In acquiring a process license, company A
will commonly be confronted with one or more
of the following possiblities:
Case 1. To date, company B has only built its
own full-scale plant. It has not yet granted any
licenses to third parties and therefore has no
design documentation on plants with different
feedstocks and utilities, as needed by A for its
plant. B is not prepared to guarantee third-party
plants, but only to offer a patent and know-how
contract. Once such a contract has been signed, it
permits A to examine the operating records and
assemble the documentation needed for the pro-
jected plant.
Case 2. Company B is interested in world-
wide licensing of the process, maintains a large
in-house engineering department, and has
worked out the complete process design. In
addition to the license and know-how contract,
B will offer guarantees, and may even be ready to
undertake engineering, procurement, construc-
tion supervision, and commissioning with sepa-
rate billing for these services.
A variant of this case is when B has developed
the process in collaboration with an engineering
contractor and granted exclusive use or construc-
tion rights to that company. Here again, licensee
A cannot seek competing bids because the pro-
cess is a ‘‘monopoly.’’
Case 3. As in case 2, B owns the process
design and is prepared to give guarantees in the
context of a license and know-how contract. B
leaves it to licensee A, however, to select an
engineering contractor to construct the plant.
Company A requests competitive bids from sev-
eral engineering firms, each of which must enter
into a confidentiality agreement regarding the
working documents delivered to it. Licenser B
will opt for this procedure when its patents have
given it the lead on the market for a long enough
time and disclosure to several engineering con-
tractors will lead to the wider use of the process
and generate royalties.
Case 4. Since patent protection for processes
declines in value with age, it is in B’s interest to
secure its know-how to the maximum extent.
Accordingly, B will hand over the acquisition
and licensing rights to one or two trusted
Vol. 8
engineering firms in the form of a license agree-
ment (which may be exclusive or nonexclusive,
for stated countries or for the world). Licensee A
can then acquire process rights, engineering, and
plants only by contracting with one of these
engineering companies.
Process licensers usually give limited guar-
antees on the functioning of the process and
product quality, but their liability commonly
extends only to half of the license fee. Commis-
sioning assistance is generally given – in special
cases, after training of the operating personnel in
B’s own plant or another licensee’s plant. In
developing countries, licenses are only granted
with long-term management contracts, which
many banks require as a condition of financing.
For profitable processes, royalties amount to
1 – 4 % of the product value for the life of the
patent, but for at least 10 years. A running royalty
is a license fee levied on a specific measurable
quantity of production from a specified technol-
ogy. A paid-up royalty generally represents the
current value of 10 years’ royalties and is thus
equal to 5 – 6 times an annual royalty. If supply
contracts are in effect, the royalty may also be
calculated in terms of the plant value (e.g., 5 % of
the value of the entire facility or 10 % of the value
of the process facility proper) or as a fixed
amount per unit product, often with price escala-
tor clauses.
4.1.3. Process Licenses via Engineering
Contractors
Cooperation with engineering contractors often
increases the licenser’s chances of obtaining
additional revenue by licensing its entire operat-
ing know-how. The licenser simultaneously re-
duces the load on in-house engineering capacity
because the external engineering firm bears the
main load of establishing engineering documen-
tation, interpretation, and training. Licensing is
therefore being increasingly handled by engi-
neering firms who check and extend the process
documentation and may also optimize some
equipment items or process steps. Improvements
are possible when new operational know-how
has not yet been implemented as redesigns in the
licenser’s first full-scale plant; this is difficult
with good processes because of market require-
ments (supply contracts for products). Engineer-
Chemical Plant Design and Construction 287
ing firms are able to undertake all design, supply,
and plant construction tasks, including commis-
sioning. Competitors offering the same process
will design different plants because of their
different design and construction experience. In
comparing bids, the customer must therefore
consider not only the price, but also the refer-
ences, guarantees, and quality of the bidders.
Production companies granting licenses only
tend to guarantee the typical basic features of the
process (yield and product quality). They never
take responsibility for plants erected by third
parties. Engineering firms thus see an opportuni-
ty to guarantee the whole plant. This is, of course,
only possible when the company has built many
plants and has wide experience and knowledge.
The licenser generally remunerates the engineer-
ing firm for this aid by paying it part of the royalty
in return for the additional responsibility.
If the engineering firm has no special experi-
ence, it will supplement the licenser’s process
guarantee with a guarantee of correct engineering
design; in the case of supply contracts, it will
relieve the customer of some risk by giving a
material and price guarantee. Depending on ex-
perience, the firm may also guarantee the capaci-
ty of the plant and the utilities consumption
within stated tolerances. When processes are
licensed from the licenser either directly or via
an engineering firm, it is important for the licens-
er to ensure that ‘‘secret know-how’’ remains
secret and that the exchange of experience, in-
cluding supplementary discoveries of the licens-
ee (feedback), remains confidential. Naturally,
the licenser will compensate the licensee for
economically valuable improvements.
4.1.4. Know-How Contracts via
Engineering Contractors
The know-how contract is a modification of the
process license agreement. When patent protec-
tion ceases, the process licenser attaches great
importance to keeping its undisclosed know-how
secret. This know-how is given to a few engineer-
ing firms under strict confidentiality agreements,
which are binding on the firms’ employees. Com-
panies interested in the construction of plants may
be told solely what has already been published.
They can only obtain more precise information
after having signed a secrecy agreement.
288 Chemical Plant Design and Construction
The texts of know-how contracts are compa-
rable to those of license agreements, but the fee is
lower. The activity of engineering firms and any
guarantees they might give are similar to those
discussed under license agreements.
Some engineering companies have often man-
aged to improve current processes that are no
longer protected so that new applications result.
In most cases, however, the activity of such firms
is limited to simpler processes (e.g., gasification
and gas purification), unit operations, or improve-
ments in thermal economy, automation, environ-
mental protection, and disposal technology.
4.2. Design and Supply Contracts with
Engineering Contractors
Should an investor bring in an engineering firm
to construct its plants? This question arises
whenever the investor does not have adequate
in-house engineering capacity. In the following
sections it is assumed that the investor needs an
outside engineering contractor for a construc-
tion project.
4.2.1. Selection of Engineering
Contractors
4.2.1.1. Importance of Risk in the Plant
Business
The intention to build a chemical plant presents
the investor and the candidate engineering firm
not only opportunities for success but also risks.
The erection of a large plant entails above-aver-
age, qualitative and quantitative risks. The fol-
lowing features of the large-plant business are
crucial in risk assessment:
1. Complexity and duration of the project
2. Responsibility for long-term operation of the
plant
3. Transfer of investor’s entrepreneurial risks to
the engineering firm and vice versa
4. Priority of the project in investor’s and engi-
neering firm’s business results
5. High financing budget
6. Heavy dependence on market development of
the product
Vol. 8
A unique feature of the plant design and
construction business is that these risks are gen-
erally cumulative, so that both the investor and
the engineering contractor must practice risk
management, i.e., measures aimed at identifying,
assessing, and limiting risks.
Since the investor and the engineering con-
tractor deal with potential risks in different ways,
the formulation of a plant construction contract
between these parties is extremely important:
both parties must be satisfied that their interests
are protected.
Generally, there is no benefit to the investor in
looking too hard for every competitive advan-
tage. This is especially so when the engineering
contractor may fall into the danger of trading off
plant quality for savings as a result of accepting
below- cost prices and unsatisfactory conditions;
such shortcuts often become apparent only after
the plant is on-stream. As a rule, sharp competi-
tion forces engineering firms to seek an optimal
outcome at minimum cost. These considerations
have promoted cooperation between investor and
engineering contractor and have become crucial
points in contract drafting.
4.2.1.2. Selection and Award Criteria
The investor develops his own criteria for se-
lecting an engineering firm to carry out a con-
struction project. Bid invitations and bid com-
parisons are used to award a contract that is
acceptable to both parties. The most important
criteria follow:
1. Does the engineering firm have experience or
references relevant to the tasks it may have to
perform?
2. Does the firm have experience in the country
and locality where the plant is to be built
(logistics) ?
3. Is there a danger of communications problems
during execution of the project (language
barrier) ?
4. What kind of staff situation exists within the
engineering firm? Will it be able to organize
good project management?
5. What standards and specifications will govern
the work? Can the engineering firm ensure
compliance with standards that may be new
and unfamiliar to it?
Vol. 8
6. What references does the firm offer with
regard to the quality of supply and services
and compliance with time schedules?
7. Is the firm’s credit rating adequate for the
requirements of a large contract?
In the bid invitation, the investor states what is
wanted and required with regard to the technical
concept (process technology, scope of delivery
and services, quality requirements, etc.) and the
commercial concept (type and contents of con-
tract, financing, marketing, etc.).
A thorough, detailed bid represents a signifi-
cant cost to the bidder. A company will only
make this investment if it has a good chance of
winning the competition. The bid invitation must
therefore be written in a clear, understandable
manner so that the potential bidder can precisely
identify the task to be performed.
In order to make bids comparable, all bidders
must be given the same documents and informa-
tion. The bid invitation should always include the
following:
1. General description of project with site lay-
out plan.
2. Services and deliveries desired (e.g., basic
engineering and know-how, complete engi-
neering, complete engineering plus procure-
ment assistance, delivery with or without
construction and commissioning).
3. Precise data on the process or process stages
to be covered by the bid. If the bidder does
not have rights to the process, the invitation
must state whether the process license is also
to be covered or whether this will be handled
by the investor directly with the process
licenser.
4. Production capacity and product quality.
5. Available feedstocks, auxiliaries, and utili-
ties (composition and quantity available).
6. Availability of electric power and water for
construction purposes.
7. Available infrastructure (e.g., workshops,
laboratories, warehouses, and social
facilities).
8. Overall time schedule.
9. Guarantees desired for production, quality,
consumption rates, materials, date of
completion.
10. Pricing terms of payment desired.
11. Standard codes and guidelines to be applied.
Chemical Plant Design and Construction 289
12. Deadline for bid submission.
13. Period for which bid must remain binding.
14. General conditions.
A qualified engineering firm may still decide,
not to submit a bid – possibly because it sees too
little chance of realization of the project or a
chance of success in the face of stiff competition.
The simplest approach to bid comparison is to
prepare schedules of prices, delivery times, terms
of payment, terms of delivery, exclusions, and
miscellaneous conditions. Large investor com-
panies send preformulated tables to bidders,
especially for standard processes; the bidder
merely has to enter the services, exclusions, and
miscellaneous conditions.
The differences found in the bid comparison
should be analyzed and then discussed with the
bidder. Discussions are often time consuming
and should be carefully planned. An efficient
negotiating program should cover the following
topics, in order:
1. Fundamentals, infrastructure, overall con-
cept, process engineering, economics
2. Equipment, material, and services to be pro-
vided; exclusions
3. Special and general conditions; guarantees
4. Price
5. Time schedule, including intermediate targets
4.2.2. Form and Content of Contracts
4.2.2.1. Basic Concerns in Contract Writing
In writing the contract, both the party inviting
bids and the bidder can propose, negotiate, and
conclude agreements. The elements of the con-
tract must therefore cover all those aspects that
the potential contracting parties deem not satis-
factorily governed by other provisions (usually
by relevant legislation).
Efforts to reach contractual agreement aside
from relevant legislation are primarily devoted to
making the potential risks manageable. Details
on contract drafting can be found in [37], [38],
[113–115].
Since the profit margins of the engineering
contracting business are small, it is important to
identify, assess, and allot all risks. For a multi-
million-dollar project differences of a few tenths
290 Chemical Plant Design and Construction
of a percent can decide whether a bid is accepted
or rejected.
Often the only other possibility for absorbing
risks is the contractor’s profit, which averages ca.
2 – 4 % of contract value in the plant design and
construction business. Such a small margin can
only cover limited cost overruns on a single
project.
Methods of dealing with potential risks at the
contract drafting stage can be classified into two
groups. First, each of the parties must consider
the well-established policies of its company. The
extent of potential risk for the company resulting
from deviation from such a policy governs which
person in the company hierarchy has the power of
decision. The person in charge of the negotiations
must therefore know when the limits of his
jurisdiction have been reached. The decision
whether to accept or reject conditions proposed
by the other party must then be passed on to an
appropriately higher level in the company
hierarchy.
Second, there are modifiable (dispositive)
goals for the negotiating parties. The limits of
negotiability (breaking points) are reached when
one or the other party’s willingness to make
compromises has been exhausted or when accep-
tance of the other party’s proposals would result
in incalculable risks.
As a rule, the engineering contractor has to
decline to accept liability for indirect and
consequential damages. Furthermore, the con-
tractor cannot be held responsible if postpone-
ments of deliveries and services occur as a
result of circumstances beyond his control
(e.g., war, revolution, strikes). Other possible
breaking points include excessive guarantee
requirements.
The engineering contractor will reject a pro-
posal for unlimited liability. Limitations on lia-
bility include:
1. Limitation of total liability for delays and/or
nonattainment of process guarantees and/or
for costs incurred for the correction of design
errors in equipment or during construction
and installation.
2. Time limits on the guarantee for materials,
typically x months after commissioning of the
plant; if commissioning is delayed and this is
not the fault of the engineering contractor, a
‘‘not later than’’ date must be agreed on.
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3. The liability provisions set forth in the con-
tract should bar recourse to liability laws
because these do not make appropriate allow-
ance for the special features of the plant
construction business.
4. No liability for indirect or consequential da-
mages, such as lost profits, loss of use, and loss
of production. From the engineering contrac-
tor’s standpoint, this is a nonnegotiable
clause. If such liability were accepted, the
existence of even financially sound contract-
ing companies might be endangered.
4.2.2.2. Contract Types and Provisions
Although there are many types of contracts, the
following are particularly important:
Engineering Contract. An engineering
contract normally governs compensation for en-
gineering and procurement services, and the
supervision of construction, and commissioning.
It usually provides for reimbursement of inciden-
tal costs such as travel, communications, com-
puter support, and accomodation.
The contract can be for complete engineering,
including procurement and supervision at the
construction site up to the successful completion
of the guarantee run.
The contract may, however, be limited to
partial services, such as basic engineering, de-
tailed engineering, procurement services,
supervision of construction, supervision of
commissioning, and supervision of third-party
engineering services.
An engineering contract does not include
delivery of plant equipment or the performance
of plant construction. The procurement services
that may be included are generally carried out ‘‘in
the name and on behalf of ’’ the investor.
The contractor’s liability in an engineering
contract extends to correcting design errors at
no cost to the investor, and often includes a
percentage of costs incurred as a result of
correcting problems in equipment or during
construction.
Reimbursable Contract. In the reimbursable
contract, every hour of work performed by the
engineers and procurement staff is paid for, plus
all incidental costs. Proof of working hours is
required.
Vol. 8
A reimbursable contract offers an advantage
when the scope of work is not well-defined (so
that it is impossible to determine a fixed price) or
when abandonment of the project is anticipated.
The hourly or daily rates specified in the
contract are often classified by category. The
contract must state what is included in the hourly
rates (e.g., salary, other payroll costs, workplace
costs, profit).
An important drawback of this type of con-
tract is that the investor can strongly influence the
contractor’s execution of the project. Because the
scope of engineering services is generally not
adequately defined, control of the service budget
is difficult.
Reimbursable Contract with Target Price.
In this type of contract, the engineering contrac-
tor accepts a share of the risk for staying within
the calculated service costs. A target price is set
on the basis of the calculated costs; the engineer-
ing contractor generally takes a certain percent
participation in any overrun, but receives a bonus
if the work comes under the target price.
The target-price provision can also extend to
equipment and construction costs. A sufficiently
exact definition of the services is required so that
a fairly reliable calculation is possible. The in-
vestor gains the advantage of better budget
control.
Lump-Sum Engineering Contract. If the
bid invitation for a chemical plant defines the
scope of work well enough, a lump-sum bid can
be prepared. This type of contract has the advan-
tage for the investor that the budget is set in
advance (provided no additional work is needed
in the course of the project). The engineering
contractor has much better control over the proj-
ect with regard to costs (man hours) and sche-
dules. In contrast to the reimbursable contract,
the investor has a limited say in decisions taken
during the project.
Supply Contract, Turnkey Contract. As a
rule, a supply contract commits the engineering
contractor to provide engineering, and supply of
all plant equipment and materials needed for the
construction of a complete chemical plant. The
contract must define the limit of responsibility of
the engineering contractor for plant equipment;
the boundary may be the ship, railroad car, or
Chemical Plant Design and Construction 291
truck used to transport the equipment to the
construction site. The engineering contractor’s
responsibility can, however, extend to the receipt
of equipment on site.
A turnkey contract includes the provisions of
the supply contract, plus construction services. If
the engineering contractor does not have the
personnel resources for construction work, it
generally subcontracts this work to specialist
firms but assigns its own management and su-
pervisory personnel to maintain single-line re-
sponsibility to the investor.
In supply and turnkey contracts, all goods and
services are procured in the name and on behalf
of the engineering contractor. The contractor
thus assumes liability to the investor for the
mechanical functioning of equipment as provid-
ed by the contract. In turn, the liability risks
associated with this material guarantee are
shifted to the relevant suppliers and subcontrac-
tors. Similarly, the engineering contractor will
impose penalties on the suppliers and subcon-
tractors for late delivery or installation to reduce
its own time risk.
Supply and turnkey contracts are based on a
lump-sum price, sometimes with a provision for
price escalation. In order to keep the price risk
quantifiable, the bid must be based on a detailed,
accurate definition of the scope of deliveries and
services for the plant to be erected.
4.2.2.3. Essential Elements of a Contract
The structure and delimitation of scopes of de-
livery and work are very important, especially
because these factors affect liability questions,
contractual provisions, and the negotiation pro-
cess. They are expressed in the form of
1. Specifications of services
2. Description of the scope of delivery with
delivery boundaries
3. Guarantees and liabilities
4. Criteria for handing the plant over to the
investor
Specification of Services. Although the
specification of technical and commercial ser-
vices is not usually problematic from the stand-
point of contract law, it is often highly relevant as
a basic fact and for later reference. Since this
specification normally comprises a very large set
292 Chemical Plant Design and Construction
of documents, it should be formulated as one or
more appendices to the contract. Much unneces-
sary discussion between the contracting parties
can be avoided if the specification of services is
carefully prepared in detail and states clearly
what services must be performed by whom.
It is useful to prepare a list of services for the
project, which can be based on the specification
services contained in the bid invitation, as well as
in the bid. Any modifications made in the course
of contract negotiations must be incorporated.
The specification of services must also contain
the detailed conditions and constraints needed to
carry out the assignment, a procedural description,
and a list of relevant regulations and standards.
The list of services should give a detailed
description of technical and commercial services
to be performed, indicating what design docu-
mentation is to be prepared (e.g., drawings, data
sheets, specifications, flow sheets and sche-
matics, lists, approval documents).
Moreover, it must be stated which of the
services will be performed by the engineering
contractor, the investor and third parties.
Scope of Delivery/Delivery Boundaries. A
supply contract must describe the equipment and
materials to be supplied; a turnkey contract must
also define the construction services. In addition,
the scopes of delivery and work must be delim-
ited with respect to third parties.
The description of the scopes of delivery and
work should contain the most complete list pos-
sible of apparatus and machinery; a description
of electrical equipment and materials and control
systems; approximate quantity requirements for
piping, concrete, cables, and structural steel; and
a description of construction services. It is not,
however, expedient to set down exact numbers
because final data on equipment size, pipe rout-
ing, etc. cannot be made until the design work is
under way. Establishing the details too early
could hinder subsequent optimization of the de-
sign, this would not be in the investor’s interest.
Guarantees. Forms of guarantee for chem-
ical plants have been devised that are technically
meaningful and can be verified at a reasonable
cost.
Mechanical (Material) Guarantees relate
solely to individual pieces of equipment, but not
Vol. 8
parts subject to wear. A period (e.g., 12 or 18
months) is defined in which repair or replacement
is undertaken by the contracting party or suppli-
ers at no cost to the investor.
Process Guarantees generally relate to the
capacity of the plant, product quality, and the
consumption figures for utilities such as steam,
cooling water, and electric power.
The contract should state the conditions used
to verify the process guarantee (e.g., analysis of
feedstock, quality of utilities). Furthermore, it
should define the measurement and analysis
methods used in the guarantee run and its
duration.
The forms of guarantees are different for
utilities (steam, electric power, fuel gas), where
a certain amount of over- and underconsumption
can offset each other, and for plant capacity and
product quality, where shortfalls result in
penalties.
If the plant does not meet the agreed figures in
the guarantee run, the engineering contractor is
given an opportunity to make improvements. If
these are not successful either, the relevant con-
tractual consequences take effect.
Handing Over the Plant. The criteria for
handing the plant over to the investor are usually
stated in the contract. The plant is often handed
over section by section and/or in phases. Several
forms of handover are employed:
1. Transfer to the operational custody of the
investor : This, as a rule, takes place at the
beginning of test operation. The investor’s
personnel run the plant under the direction
of the engineering contractor.
2. Provisional handover: Provisional handover
takes place after a report on the successful
guarantee run has been signed, or after a ‘‘not
later than’’ date has passed (if the guarantee
run has not been done for reasons that the
investor has to justify).
3. Final handover: Final handover comes
after all defects listed in the report made
after the provisional handover have been
corrected.
Final inspection of the plant, performed by
both parties, completes the handover procedure.
Vol. 8
5. Execution of the Project
Design and construction of chemical plants are
complex operations comprising many interrelat-
ed activities (Fig. 16). Plant design and the pro-
curement of equipment occupy workers from
nearly a dozen special engineering and procure-
ment disciplines.
Medium-sized to large projects [contract
value (50 – 250)106 DM; (30 – 170)106 $]
have a design period of approximately 15 – 18
months and a total project duration (up to
commissioning) of ca. 18 – 24 months. Some
100 – 150 engineers and procurement staff are
involved at the peak of such a project in the
design offices alone.
5.1. Scope of Work
Work on total chemical plant project comprises
basic engineering, detail engineering, procure-
ment, civil work and erection, and commission-
ing. (The ‘‘authority engineering’’ activity, in
which documents are prepared for submission
to the authorities having jurisdiction, is generally
carried out during both basic and detail
engineering.)
Depending on its engineering capabilities and
resources the investor may execute part of the
Figure 16. Main tasks of project execution
Chemical Plant Design and Construction 293
project (basic engineering and/or procurement,
and/or construction). The remaining activities (or
the whole project) are executed by an engineer-
ing firm under contract.
Basic Engineering is based on process de-
sign (Section 3.3) which is performed during the
preliminary design phase by the investor, by the
licenser, or by an engineering firm in close
cooperation with the investor. Process design is
a component of basic engineering.
Basic engineering documentation includes the
process flow diagrams, piping and instrumenta-
tion diagrams, plant layout, equipment list (bro-
ken down according to plant sections), utilities
distribution scheme, process engineering data
sheets, noise protection concept, electrical equip-
ment list, summary of electrical consumers (one-
line diagram), data sheets for control equipment
and instrumentation, functional process control
and instrumentation plan, description of the pro-
cess control system, and soil report.
The content and level of detail in basic engi-
neering documentation is such that detail engi-
neering can be done (possibly by another engi-
neering firm) without significant difficulties.
Detail Engineering. In detail engineering
the engineering and procurement teams pre-
pare detailed plans, drawings, specifications,
294 Chemical Plant Design and Construction
calculations, and descriptions so that the follow-
ing steps can be carried out:
1. Preparation of bid invitations for all plant
equipment, material, and services such as
civil work and erection of plant equipment
2. Selection of manufacturers, vendors, subcon-
tractors; placing of orders
3. Execution of quality assurance operations at
manufacturers’ and vendors’ workshops
4. Shipping of plant equipment to the plant site
5. Execution of civil work and erection of plant
equipment
6. Commissioning
Procurement Services include all activities
in connection with preparation of bid invitations,
evaluation of bids and bid comparisons, and
placing of orders. They also involve ensuring
on-time performance of manufacturers and ven-
dors (expediting), as well as the planning and
supervision of the shipping of plant equipment to
the plant site.
Civil Work and Erection of a facility are
generally subcontracted to specialist firms by the
engineering contractor or by the investor. The
work is often supervised by the same organiza-
tion that does the detail engineering. It must not
be overlooked that the construction documenta-
tion prepared by the engineering contractor will
not be free of errors, so that corrections have to be
made on-site. Such corrections should be carried
out by the engineering contractor’s specialists.
The contract should state which partner is
responsible for construction execution time and
costs: the investor, the engineering contractor, or
(as at large, complex plants) a general contractor
accepting overall responsibility.
Commissioning of a plant comprises all the
work done after ‘‘mechanical completion’’ up to
certification of the guarantees embodied in the
contract. The term ‘‘mechanical completion’’
should be defined unambiguously and in detail.
Once ‘‘mechanical completion’’ has been certi-
fied, the plant passes into the custody of the
builder. Preparatory work for commissioning
and commissioning itself are usually performed
by employees of the future operator under the
direction of the engineering contractor or licens-
er. When the guarantee tests defined in the
Vol. 8
contract have been passed, the plant is handed
over to the owner. Minor activities remain that
are carried out by the engineering and/or con-
struction contractor. This work is specified in a
punch list and must be completed within a stated
time.
5.2. Project Organization and
Management
The design and construction of a chemical plant
within a predefined time and budget calls for
careful organization of the people working on the
project, a clear definition of their responsibilities
and competences, and an appropriate manage-
ment concept.
A chemical-plant engineering firm usually
executes many such projects, differing in size,
duration, and complexity, at any one time. The
contracting firm is geared to this kind of assign-
ment; it often develops its own set of ‘‘tools’’ and
is organized exclusively for these activities.
The following description of the relatively
complex steps in the execution of a chemical
plant project is given from the viewpoint of an
engineering contractor. It should not, however,
be forgotten that investors and/or operators of
chemical plants also follow a similar procedure
to design and construct plants in their own areas
of expertise.
5.2.1. Matrix Project Management [116],
[117]
The first powerful management concepts for the
execution of complex, single projects were de-
vised in the United States during the last years of
World War II. It was recognized that existing
forms of organization were not suited to the
solution of complicated armaments assignments
on a crash basis. This management philosophy
was subsequently employed in the space pro-
gram, and later found use in the industries of
Western Europe. It can be defined as follows:
‘‘Project management is a management concept
for the solution of a well-defined problem within
a predefined time subject to a cost framework
specified for the project’’ [117].
Personnel from a wide range of disciplines
within a company work on a defined project in an
Vol. 8
interdisciplinary setting and must be coordinated
and directed. This means:
1. Assignment of appropriate personnel to the
project from functional organizations in the
company
2. Organization of the personnel into a project
team for a defined period of time
3. Designation of a project manager
4. Establishment of responsibilities and compe-
tences for the duration of the project
The organization of the project team and,
above all, the responsibility and competences of
the project manager and his colleagues, have
three basic forms: functional, matrix, and auton-
omous project management.
The matrix form of project management, ei-
ther in pure or modified form, is the most suitable
concept for engineering contractors because they
perform ‘‘multiproject’’ management. Such an
organization represents the best solution for in-
tegration of temporary project teams into the
company organization. It also ensures that the
projects are optimally executed.
Matrix project management is characterized
by division of competences (Fig. 17). The proj-
ect manager is responsible to company manage-
ment for the realization of project targets. The
managers of the functional departments (engi-
neering and procurement) involved in the project
are responsible for delegating appropriate per-
sons to the project team. The managers also carry
Figure 17. Matrix project management
Chemical Plant Design and Construction 295
the technical responsibility for the performance
of these team members. The project manager
determines the ‘‘what’’ and ‘‘when’’ of a task in
the project, while the department managers de-
termine the ‘‘who’’ and ‘‘how.’’
For smaller, simpler projects and projects of a
repetitive character, which do not keep a project
manager busy full-time with management tasks,
the matrix system can easily be modified so that
project management is taken over by a qualified
person from a functional department, who also
carries out the required specialist work.
5.2.2. The Project Manager
The execution of a project in the matrix organi-
zation concept places heavy demands on the
project manager [117], [118]. He assumes ‘‘proj-
ect responsibility’’ to company management for
the assigned project: compliance with budgeted
project costs, agreed time schedules, and all
contractual conditions, particularly the attain-
ment of the agreed quality level.
For the customer, the project manager is the
first representative of the engineering firm for the
project, and also his first partner in discussions.
The management tasks of the project manager are
to set targets, establish guidelines, promote in-
formation flow, supervise, analyze and correct,
motivate, and report. He must accord the same
weight to the interests of the customer as he does
to his own company.
296 Chemical Plant Design and Construction
The technical capabilities of the project man-
ager should include not only specialized knowl-
edge of the project and the technology, but also
knowledge of how design and construction work
is executed and ability in engineering, procure-
ment, contract drafting, and project control.
These capabilities should be complemented by
familiarity with the client’s language, country,
and the client, as well as skill in giving presenta-
tions and in moderating discussions. Other qual-
ities include analytical ability, leadership and
negotiation skills, ability to work under physical
and psychological stress, ability to make deci-
sions, and at the same time ability to integrate and
to make compromises.
In larger projects, project engineers are put
under an experienced project manager; they take
responsibility for the execution of portions of the
project.
5.2.3. The Project Team
A project team comprises employees from tech-
nical and procurement departments. If they are
not fully occupied by a project (e.g., as it winds
down), they may also belong to a team working
on another project at the same time. The orga-
nization of a project team (Fig. 18) must be
adapted to the specific needs of the project.
Figure 18. Organization of a project team
Vol. 8
Tasks, responsibilities, and competences are
unambiguously defined. The project manager
bears responsibility for meeting targets until the
project is handed over to the owner, he is
therefore placed above the construction site
manager, who in turn heads the construction
site organization.
Efficient coordination, with short lines of
communication within the project team, is cru-
cial. An effort is therefore made to separate the
project team members physically from their
functional departments within the company and
locate them close together.
The team members remain subordinate to the
project manager in regard to project requirements
and for the duration of their participation in
project execution. They continue to make their
technical and functional ‘‘residence’’ in their
home departments.
5.2.4. The Start Phase of a Project
The most important phase in the execution of a
project is the start phase [119], [120]. The first
1 – 3 months are crucial to the success of the
project. In this period all basic decisions must be
made; all project-specific documents needed by
the team members and the project manager must
be generated.
Vol. 8
The essential decisions and documentation
include:
1. Selection of project manager and key
personnel
2. Creation of project team and its organization
3. Working out project structure, including
definition of subprojects and work packages
4. Planning of project execution and prepara-
tion of project execution guidelines
5. Identification of codes and standards govern-
ing the project (usually included in the
contract)
6. Preparation of detailed time schedules (bar
charts and network diagrams) as a basis for
time scheduling and control
7. Drawing up a detailed budget as a basis for
cost control
8. Preparation of a detailed man-hour budget
for each of the technical and procurement
disciplines
9. Determination of nominal progress curves
for all disciplines involved, as a basis for
monitoring compliance work progress
10. Manpower planning (office and construction
site)
5.3. Project Control (Schedules,
Progress, Costs)
(Project control during the construction phase is
described in Section 5.6.2.2). The control of
project execution is one of the most important
tasks of the project manager. As early as possi-
ble, the project control team (schedule and cost
control engineers) provides information about
the time situation, the progress of work, and the
consumption of man-hours in relation to due
dates and determines the cost situation for de-
liveries and services [121]. Regular analysis of
outstanding activities, expected time consump-
tion, and cost and man-hours up to the end of the
project is used to update these values. A com-
parison of the actual/expected/target values
shows the reliable status of the project, enabling
the project manager to identify problems at an
early stage. After appropriate analysis, he and
his coworkers devise solution options, which
then lead to decisions about further steps. This
procedure generally allows corrective measures
Chemical Plant Design and Construction 297
to be implemented so that the target status can be
regained.
5.3.1. Time Scheduling
Time scheduling and control involve the use of
bar charts or network diagrams. The choice is
made at the start of execution and depends on the
size, complexity, and criticality of the project,
and the customer’s requirements. Schedules are
usually prepared and updated by computer
(mainframe and/or PC).
Bar Charts. Bar charts are used for plan-
ning and control of small, simple projects em-
ploying established processes and involving little
time risk. These charts show the planned elapsed
time for each discipline and their important
activities. In general, the following areas are
included: process engineering, plant layout, civil
work and structural steel, mechanical equipment
(furnaces, process equipment, machinery), pip-
ing, electrical, and control systems.
The schedules cover the full span of the
contract period and are broken down into the
following activities: engineering (specifications,
drawings); procurement (bid invitations, bid
comparisons, orders, delivery time, shipping);
construction and commissioning.
Figure 19 shows an example. A ‘‘dual-bar’’
system is employed to check the status of indi-
vidual activities with respect to the due dates at
any time during execution. The upper bar shows
the planned duration of the activity. The lower
bar indicates, as of the cutoff date, the actual or
expected start and end of the activity. The prog-
ress of the activity is indicated by filling in the
lower bar.
If needed, bar charts for individual disciplines
can be expanded to show more detail. This is
done, for example, when an early activity plan is
prepared for the first three months of project
execution, or when a detailed chart is drawn up
if the status of work in one area is critical.
Network Diagrams. The network tech-
nique is widely used in industrial operations
research [116], [121–124]. According to DIN 69
900, the term ‘‘network diagram technique’’
includes all methods used to analyze, describe,
plan, oversee, and control processes on the basis
298 Chemical Plant Design and Construction Vol. 8

Figure 19. Bar chart

Vol. 8
of graph theory; considered parameters include
time, costs, and materials. The main application
of network diagrams is in project planning and
supervision. The project is broken down into
steps (activities), which are placed in a network
diagram according to their logical dependences
(precedences).
Formal representation employs arrows and
nodes (a node may be represented by a rectangle
or a circle). Network diagram techniques differ in
how the logical conditions ‘‘event’’ and ‘‘acti-
vity’’ are assigned to these fundamental elements.
Event-on-node plan: The network is formu-
lated mainly in terms of events, which are re-
presented by nodes. An event is the start or finish
of an activity and has no duration.
Activity-on-node plan: The network is for-
mulated mainly in terms of activities, which are
represented by nodes.
Activity-on-arrow plan: The network is for-
mulated mainly in terms of activities, which are
represented by arrows.
The following network methods based on the
above approaches were devised independently of
one another.
The Program Evaluation and Review Tech-
nique (PERT) is an event-on-node method and
was devised in 1958 by the U.S. Navy in collab-
oration with the Boots & Hamilton consulting
firm and Lockheed. The impetus for its develop-
ment was the program to design and construct
nuclear submarines. PERT uses three time esti-
mates for each activity: optimistic, probable, and
pessimistic. The analysis is run with each esti-
mate and the results are averaged.
The Critical Path Method (CPM) was also
developed in the United States in 1957. It is an
activity-on-arrow network method that was de-
vised by Du Pont and Remington Rand. It was
first used for planning maintenance and conver-
sion work in the chemical industry.
The Metra Potential Method (MPM) was first
used in the design of nuclear power plants and
was developed in 1958 by the French consulting
firm SEMA. It is an activity-on-node technique.
Several other network methods have since
been worked out. The Precedence Diagram
Method (PDM) was developed from MPM and
allows greater flexibility in the way precedences
are represented.
The advantages of network diagram planning
can best be exploited with computers. By the end
Chemical Plant Design and Construction 299
of the 1970s, these techniques had been opti-
mized for mainframe systems. Since the begin-
ning of the 1980s, a variety of personal computer
programs have been written, and network dia-
gram techniques have come into wide use. Main-
frame and PC software are capable of outputting
the results of network calculations in the form of
due date lists, bar charts, and network plots.
To control progress effectively, the actual
status of project execution must be determined
at regular intervals, the results compared with the
target data from the network chart, and the con-
sequences ascertained by recalculating the net-
work to the end of the project.
Event-oriented network systems play a sec-
ondary role in project planning and control.
Activity-on-node and activity-on-arrow charts
are about equally important in the planning and
control of all kinds of projects, including research
and development.
Some engineering firms have their own soft-
ware for calculating network plans. Lurgi, for
example, uses the PDM method to prepare
network charts (unless the customer requires
otherwise). The calculation is done with the
Lurgi Netzplan System, which was developed
in-house and is specially adapted to the condi-
tions of chemical plant construction. Network
diagrams are used for large, complex projects,
chiefly when there is a great time risk. The
project is broken down into individual activities
of the various divisions involved, similar to the
procedure for bar charts (see above). The level
of detail is predefined by the project manager
and scheduling engineer. The stored data can be
quickly updated on screen (interactive opera-
tion) and the network diagram immediately
recalculated.
When the network calculations are complete,
the results can be output as lists of due dates
sorted under all kinds of criteria, or bar charts
with or without interdependence. Figure 20
shows the steps involved in project control with
network planning.
5.3.2. Progress Planning and Control
Progress planning and control is performed for
each discipline involved. For management
needs, these individual plans are assembled into
an overall plan.
300 Chemical Plant Design and Construction
Figure 20. Project control with network system
The progress plan is generally plotted graphi-
cally. A ‘‘target’’ curve for the planned progress
of work, for example of engineering, is drawn up
in the following way. The work of each engi-
neering discipline is broken down into individual
activities. The duration and the expected monthly
consumption of work units (e.g., man-hours)
available from experience is specified for each
activity. The sums of the monthly work units
planned for individual activities are expressed as
a fraction of the total number of work units
required to give a target progress curve. These
planning curves are prepared at the start of the
project. During execution, they form the basis for
control of actual work progress and actual con-
sumption of work units (e.g., man-hours).
Actual work progress(physical progress)is de-
termined by scheduling engineers who query the
discipline engineers and evaluate the work per-
formed. An example of such a work progress
chart is shown in Figure 21. The positions of the
curves of physical progress and work units con-
sumed, relative to the target curve, give the
project manager a clear indication of the time
compliance situation and the efficiency of the
personnel involved. If there are significant devia-
tions from the target curve, the causes should be
analyzed and appropriate corrective measures
taken.
Vol. 8
5.3.3. Cost Planning and Control
Costs. The objective of cost control is to
provide correct information, as early as possible,
on the cost status for equipment, materials, ser-
vices, and indirect costs, and to identify reliable
trends in cost development.
The project manager instructs the cost control
engineers to analyze planned orders for equip-
ment and services so that cost budgets are met.
This ‘‘cost engineering’’ already involves the
cost engineer at the stage of bid invitation, price
comparison, and assignment of order stages.
Cost control is used throughout the entire
project for engineering and procurement, as well
as for construction. All costs connected with the
project are considered, such as costs of equip-
ment and bulk materials (mechanical, electrical,
control systems, structural steel); spare parts;
civil work and erection; third-party services;
indirect costs (e.g., travel, computer services,
communications); and costs for engineering, pro-
curement, and construction supervision.
Figure 22 illustrates the operation of a com-
puter-supported project cost control system.
Cost control is based on the calculation used to
obtain the contract price. A detailed budget is
prepared at the start of project execution. In the
course of project execution, this budget will be
Vol. 8
Figure 21. Engineering work progress
modified if change orders are received from the
client. The project team members responsible for
each of the disciplines involved, in collaboration
with the cost engineer, keep a continual watch on
the technical and cost developments of the proj-
ect in their respective areas of responsibility.
A data link between purchasing and cost
control allows updating of actual costs. Cost
control, however, is based on comparison of
calculated and expected values, i.e., the calculat-
ed values are always compared with the costs
forecasted up to the end of the project. This
forecast is repeatedly updated for each discipline
by the specialist engineer and the cost engineer.
Forecasts are based on the order values at the
cutoff date, the calculated values of equipment
not yet ordered, and expected cost increases or
decreases. The cost control cycle closes when
data for the forecast and costs for approved
changes are input to the cost control system.
Risk Analysis. The analysis of orders still to
be carried out and services still to be performed is
fed into the latest forecast. This analysis often
reveals potential risks that may have a decisive
Chemical Plant Design and Construction 301
influence on the project. The effects of these risks
on costs and their probability of occurrence
cannot generally be clearly defined. One ap-
proach to risk quantification is the Lurgi ‘‘project
risk analyis’’ concept [125], [126]. The concept is
based on the risk profile developed during expert
conferences.
Cashflow Schedule. Knowledge of how to
procure funds for equipment and services at the
appropriate time is important for the investor,
but also for the engineering firm working on
supply or turnkey contract. A project cashflow
schedule is a combination of cost planning,
time scheduling, and progress planning. The
following procedure is used to prepare such a
schedule:
1. Planning of deliveries and services, including
payment modalities agreed on with the sup-
pliers of equipment and subcontractors
2. Determination of relevant actual figures
3. Deviation analysis (e.g., postponements)
4. Revision of the plan
302 Chemical Plant Design and Construction Vol. 8

Figure 22. Principles of cost controlling

Figure 23 is a graphical representation of a b. Detailed information

cashflow schedule. Payments can be read off in . Progress of individual disciplines (pro-
detail from the associated lists. cess engineering; civil engineering,
structural steel; apparatus; piping, ma-
chinery, electrical, control systems, pro-
5.3.4. Project Report curement civil work, and construction)
. Problems in execution and recom-
The preparation of regular reports for the man- mended remedies
agement of the engineering firm and the inves- . Forecast for the following month and
tor is the task of the project manager. These key points
project status reports should provide compre-
2. Graphs and lists
hensive information; information on cost and
. Time schedules
man-hours should not, however, be included in
. Progress curves (for individual disciplines
the report to the investor in the case of a lump-
and the project as a whole)
sum contract.
. Network diagrams and lists
The report should contain the following items:
. Procurement lists

1. Text 3. Cost report

a. Summary (highlights): project status, . Analysis and assessment
trends, problems . Status of costs and man-hours
Vol. 8
Figure 23. Cashflow schedule
. Cost report (computer printout), summary
. Cost report (computer printout), detailed
5.4. Detail Engineering
5.4.1. Process Engineering
Most of the process engineering of a project is
performed at the basic engineering stage (Sec-
tions 3.3 and 3.4). In addition, the process en-
gineers devise the plant control concepts in col-
laboration with the control system engineers. The
contribution of process engineers to the comple-
tion of piping and instrumentation diagrams ex-
tends far into the detail engineering phase. The
process engineers also prepare the process des-
cription, which states how the process operates
and identifies important control functions and
special features.
In cooperation with the appropriate specialty
engineers, the process engineers write detailed
startup instructions which are needed for commis-
sioning. The process engineers responsible for
process design should also be involved in commis-
sioning because they are familiar with the process
and control details of the plant. They can also gain
considerable expertise in operation of a plant,
know-how that they can use in future design.
If the engineering firm is responsible for
‘‘authority engineering,’’ the process engineer
also makes a significant contribution to the ap-
proval documentation (see also Section 3.3.3.5),
Chemical Plant Design and Construction 303
which includes specifications for products, by-
products, residues, and wastes; emissions; safety
analyses; and HAZOP studies.
5.4.2. Plant Layout
Plant layout is an interdisciplinary activity. Its
most important components are the layout (plot
plan) and the piping and instrumentation dia-
gram. Both documents are created, in prelimi-
nary form, during basic engineering (see
Sections 3.4.3 and 3.4.4). They are continually
updated in the course of detail engineering.
Plot Plan [38], [111]. The layout of, for
example, a petrochemical plant is usually drawn
to 1: 100 scale. It shows the outlines of equip-
ment items, pipe bridges, and buildings, all di-
mensioned. In the case of buildings and platforms
on tanks and towers, horizontal projections in
appropriate planes and vertical sections are also
included (see Fig. 24).
An experienced erection engineer should be
involved in the layout planning so that allowance
can be made for erection operations, in particular
the space required for the installation of heavy
apparatus. Other factors that must be considered
include maximal exploitation of available space,
placement of heavy apparatus on the ground
floor, operability of important block valves, easy
maintenance of machinery, and short runs of
304 Chemical Plant Design and Construction
Figure 24. General arrangement drawing
pipes with large diameters and/or made from
expensive materials. There must be adequate
safety distances between pieces of equipment,
escape routes for operating personnel, and access
for fire fighting vehicles.
It is also advisable to discuss the basic plot
plan with the client’s personnel (plant operators,
maintenance personnel) at an early stage. The
progress of construction and new detailed infor-
Vol. 8
mation provided by equipment vendors during
detail engineering necessitate continual changes
in the layout. In order to avoid delays in the start
of construction, an attempt must be made to
‘‘freeze’’ the building dimensions and the posi-
tions of heavy apparatus as early as possible.
The final layout is the result of design work
performed by all the disciplines involved in the
execution of the project.
Vol. 8
Piping and Instrumentation Diagram.
The piping and instrumentation (P & I) diagram
or mechanical flow diagram is based on the
preliminary P & I diagram from basic engineer-
ing. The latter is developed and elaborated in
detail engineering, as new information is ac-
quired from the engineering disciplines and
equipment vendors.
The final P & I diagram describes the whole
plant in detail (by use of coding). The contents of
the P & I diagram from the basic engineering
stage (Section 3.4.4.) are supplemented during
detailed engineering by:
1. Operating data and dimensions of equipment
2. Design data for machinery
3. Data on insulation and heating of equipment,
machinery, and piping
4. Elevation of machinery and equipment
5. Information on noise abatement
6. Delivery boundaries
7. Codes for equipment nozzles
8. Codes for fittings
9. Detailed information on electricals and con-
trol systems
The utility systems (e.g., steam, instrument
air, and condensate systems) are diagrammed
separately from the process systems. In larger,
more complicated chemical plants, P & I dia-
grams may comprise > 100 DIN A2 sheets.
The P & I diagram contains all essential
information developed by the individual disci-
plines: process engineering; equipment, machi-
nery, piping engineering; engineering for elec-
tricals and control systems. It must also include
data provided by the manufacturers of equipment
and machinery (e.g., the control system of a
compressor). This information becomes avail-
able over a prolonged span of time.
The P & I diagram is therefore revised sev-
eral times in the engineering stage (Fig. 25 is a
portion of a P & I diagram). An attempt should
be made to review the P & I diagram with all
responsible persons (and, if possible, represen-
tatives of the client). After this review, the P & I
diagram is ‘‘frozen’’ and only essential changes
should be subsequently allowed (e.g., changes
concerned with plant safety). Minor changes are
often made during commissioning; these should
be incorporated into the P & I diagram so that
Chemical Plant Design and Construction 305
the document reflects the ‘‘as built’’ state of the
plant.
5.4.3. Apparatus and Machinery
All important process engineering data for appa-
ratus (e.g., heat exchangers, reactors, towers,
vessels, tanks) and machinery (e.g., pumps,
blowers, compressors, turbines) are specified
during basic engineering. Data sheets prepared
in this stage contain essential information on
overall dimensions, pressures, temperatures,
quantities, materials of construction, etc., of each
piece of apparatus and machinery. In detail en-
gineering the apparatus and machinery engineers
complete this information. The result of this work
is a set of specifications in the form of drawings
and descriptions, which enable qualified manu-
facturers to submit bids for apparatus and
machinery.
The equipment engineers prepare so- called
guide drawings, which are scaled drawings indi-
cating all dimensions dictated by process engi-
neering (e.g., number and diameter of trays in a
tower, spacing of trays, and tower height). All
dimensions of importance for shipping are also
shown. Relevant legal provisions must be taken
into account. Nozzle tabulation and other impor-
tant design data are attached to the guide drawing
(see Fig. 26). The wall thickness is estimated so
that the weight of the apparatus can be calculated
The number and dimensions of the nozzles, and
frequently their elevations, are stated. The hori-
zontal orientation of the nozzles is determined
later when the exact position can be ascertained
from the piping design.
The guide drawings and supplementary infor-
mation form the technical portion of the bid
invitation, which is sent to selected manufac-
turers. The information in the bid invitation must
be presented in such a way that the bidders can
submit comparable bids (see also Section 5.5.1).
The design office of the manufacturer pre-
pares detailed workshop drawings and calculates
the final wall thicknesses. The workshop draw-
ings are checked by the engineering firm who
also fixes the position of the nozzles and informs
the manufacturer of any changes.
Once the drawings have been approved, pro-
duction can begin. The manufacturer is respon-
sible for compliance with legal provisions.
306 Chemical Plant Design and Construction Vol. 8

Figure 25. Section of a piping and instrumentation (P & I) diagram

(e.g., LIC ¼ level control; TE ¼ local temperature indicator; TI ¼ temperature indicator in the control room; TIC ¼
temperature control)
Vol. 8 Chemical Plant Design and Construction 307

Figure 26. Guide drawing for a vessel

308 Chemical Plant Design and Construction
Specialist engineers periodically inspect com-
plicated equipment, even during its production.
Such inspections are independent of those per-
formed by a third party (e.g., one of the German
TÜV organizations or Lloyds) when mandated
by law (e.g., for pressure vessels). The equipment
is cleared for shipping only after final acceptance
by the same specialist engineers.
The specification and procurement of machin-
ery are similar to that for apparatus. In contrast to
apparatus, which is usually custom-built and thus
individually designed and drawn, an attempt is
made to use off-the-shelf machinery. There are
two reasons for doing so: to minimize engineer-
ing costs and to hold down the purchase price.
The machinery engineers prepare specifica-
tions for every machine to be procured. The
specifications are based on the data sheets com-
piled by the process engineers, which contain all
information relevant to the process (operating
conditions, materials of construction). As an
example, Figure 27 shows a data sheet for cen-
trifugal pumps taken from the bid specification.
The machinery manufacturer supplements the
data sheet with further information on the model
he has selected for the bid.
An important element of order handling is the
time schedule according to which the machinery
manufacturer is to submit information about the
machine (e.g., dimensions, weight, vibratory be-
havior). It is important for the engineering firm to
obtain this information as early as possible to
avoid delays in the design of footings and foun-
dations, buildings, and piping. Such information
should also be finalized as soon as possible to
avoid duplication of work.
For noise-abatement design see Section
3.3.3.2.
Spare parts required for plant startup and the
first two years of on-stream operation are com-
monly ordered at the same time as the machinery.
The manufacturer recommends the type and
quantity of spares. The subsequent operator of
the plant makes the final decision once the spe-
cialist engineer has checked the bid.
5.4.4. Piping
The objective of piping design is to prepare all
drawings and specifications needed for procure-
ment and installation of the piping components.
Vol. 8
The engineering of piping systems is closely linked
with the engineering of all other disciplines. In the
initial phase of engineering, information is incom-
plete and often preliminary. The data become more
complete and exact as work progresses. Because
the need for on-time availability of piping data
requires early information from the other engineer-
ing disciplines, a step-by-step procedure is em-
ployed. Often the first steps are based on assump-
tions, so that frequent corrections are required later.
Piping accounts for a relatively high propor-
tion of chemical plant costs and piping engineer-
ing may represent as much as 20 – 40 % of total
engineering. Refineries and petrochemical plants
lie at the upper end of this range.
Piping engineering can begin once the follow-
ing information (at least in preliminary form) is
available:
1. Standards and codes (of the investor or the
engineering firm)
2. P & I diagram
3. Layout model
4. Plot plan
5. Guide drawings for apparatus
6. System drawings for machinery
7. Preliminary civil and structural steel drawings
8. Data on electricals and control systems
Piping Specification. For the sake of effi-
ciency in engineering, procurement, and piping
installation, and in view of the wide variety of
piping components and design, a piping specifi-
cation is first prepared. This document is based
on the standards and codes applicable to the plant
and relevant engineering regulations. The piping
specification also contains special piping design
guidelines for the project.
An important element in the piping specifica-
tion is the piping classification which minimizes
the different types of piping components re-
quired. All piping components (pipe, fittings,
flanges, bolts, seals, etc.) are classified on the
basis of flowing media, pressures, and tempera-
tures that occur in the plant.
A piping class comprises the expected dimen-
sions of components and their materials of con-
struction for a given set of media, pressures, and
temperatures. The classification is based on pres-
sure – temperature diagrams from DIN 2401 or
ANSI B 16.5 (see Fig. 28). Each of the areas
represents one piping class. All components
Vol. 8 Chemical Plant Design and Construction 309

Figure 27. Data sheet for a centrifugal pump

310 Chemical Plant Design and Construction
Figure 28. Piping classes (pressure – temperature diagram)
within one such area are uniformly sized. Fittings
and flanges are standardized according to pres-
sure level. Wall thicknesses are calculated from
the pressure and temperature. Once the piping
classes have been worked out, the figures are
stored in a data base and can be retrieved as
needed. The use of such a data base greatly
reduces the amount of work to be done in speci-
fying the piping system for a plant.
Piping List. All pipe runs are identified by a
code number and a piping class, and are compiled
in a piping list. The associated data are stored in a
data file. The piping list is prepared at the same
time as the P & I diagram.
Isometric Piping Drawings and Piping
Model. Drawings that show both the geometry
of the run and its location in the plant are needed
for the prefabrication and installation of piping. It
used to be common to plot every pipe run and
every fitting in a piping diagram with plan,
elevation, and section views. This method has
been largely replaced by a diagram of a single
pipe run and its components, along with mea-
surement and control devices and piping
supports.
The initial piping studies and the final
isometric drawing of a pipe run are done in
parallel with the construction of a piping
model. A bill of materials containing all pip-
ing components is drawn up for every pipe
run. Figure 29 gives an example of such an
isometric drawing. Computer-aided design
(CAD) techniques are used increasingly in
preparing isometrics.
Vol. 8
The isometric drawings are supplemented by
plans for pipe bridges and underground pipe
runs.
The model shop uses the plot plan to make a
basic model at 1 : 33 1/3 or 1: 25 scale that
includes all apparatus, buildings, frameworks for
equipment, stairs, ladders, platforms, and pipe
bridges (Fig. 30). The piping model forms the
center for coordination of all detail designs [127].
Installation work carried out on the model in
parallel with piping includes air conditioning and
cable ducts, control panels, hoists, and cranes.
A piping model has the following advantages:
1. Piping routes are easy to check for collisions
with other equipment
2. The plant operator can check ease of operation
and maintenance
3. The model can serve as a training facility for
operating personnel and as a form of instruc-
tion during installation
The completed model should be thoroughly
assessed by all discipline engineers, the later
maintenance engineer, and the operator. Any
necessary changes made at this stage are much
less costly than if they are made later on the
construction site.
Piping Calculations. Piping calculations
cover strength calculations for individual ele-
ments (wall thicknesses, flanged joints) and
stress analysis of the piping system.
Wall thicknesses are calculated from the pres-
sure and temperature ratings of the piping class.
The safe functioning of a piping system de-
pends on correct sizing and proper layout. Spe-
cial attention should be given to the elasticity of
the piping and the use of supports and anchors.
Temperature changes give rise to stresses in
piping systems, which in turn generate forces
and moments at connection and support points.
Computer-aided elasticity calculations are per-
formed to make certain that the strains resulting
from stresses in a given piping layout are within
the elastic range. If the stresses are too high, a
different configuration must be selected or com-
pensators must be inserted. For small-diameter
pipes and moderate temperatures, these expen-
sive calculations are often superfluous, since
experienced piping engineers lay out such piping
with adequate elasticity.
Vol. 8
Figure 29. Isometric piping drawing
Symbols and designations mark piping components (e. g., valves, flanges, reducers), dimensions, position of the pipe run
Material Takeoff and Procurement. A
first rough material takeoff can be performed
when the P & I diagram has reached a certain
level of completeness and the plot plan has been
drawn up so that fittings can be counted and the
lengths of the main pipe runs can be estimated.
The objective of this preliminary takeoff step is
to invite bids and place orders for piping com-
ponents with long delivery times. Sufficient ma-
terial can thus be made available on site when
piping installation begins.
As piping design advances, isometrics and
piping plans with bills of material are gener-
ated. Another (not yet final) material takeoff is
then prepared and has a higher degree of
accuracy than the preliminary takeoff. Further
orders are then placed. At this stage, bid
invitations can be sent for the installation
work, and the piping installation contractor
can be selected. The final material takeoff is
Chemical Plant Design and Construction 311
worked out after all isometrics and piping
plans are complete.
The preparation of the material takeoffs is
computer-aided. Sorting and condensing pro-
grams calculate the quantities that have to be
ordered [128]. An integrated materials manage-
ment system allows the print out of lists and
calculations for every step (e.g., bid invitation,
ordering, expediting, and material handling on
site). The efficient use of such a system requires a
consistent high-order data structure as well as the
unambiguous definition of piping components in
terms of piping classes.
Insulation and Coatings. The thickness of
insulation needed on equipment and piping must
be established at a fairly early stage since this
value may influence other parameters such as the
length of nozzles and the width of pipe bridges.
Insulation thicknesses are entered on the P & I
312 Chemical Plant Design and Construction
Figure 30. Piping model (fluid catalytic cracker complex, courtesy of Lurgi AG)
diagram and in the piping list. Thermal insulation
for pipes carrying hot media generally consists of
mineral wool enclosed in galvanized or alumi-
num jackets. Polyurethane foam enclosed in
sheet metal is widely used for pipes carrying
cold media to prevent icing and cold bridges.
Uninsulated surfaces of tanks, piping, and
steel structures must be painted to protect them
against corrosion. As a rule, machinery is deliv-
ered with the specified prime and topcoats. Rust
must be removed from the surface before appli-
cation of the prime coat. In many cases, a second
prime coat is needed before the first and second
topcoats are applied.
Underground pipe is either coated with as-
phalt or jacketed in plastic.
5.4.5. Control Systems [129–133]
Automation of chemical plants is increasing.
Rapid progress in microprocessor technology has
led to the development of distributed control
systems (DCS) that can meet the increasingly
Vol. 8
stringent requirements of modern process opera-
tion. The objectives are to improve the availabil-
ity of operating process plants, enhance their
reliability, and optimize their operation.
The distributed functions facilitate the engi-
neering, operation, and maintenance when bro-
ken down into levels (Fig. 31).
Centralization of process control systems
means that plants are chiefly fitted with electronic
devices, since this kind of equipment with its
reliable signals is suitable, even for explosion
hazard areas. Pneumatic instrumentation is lim-
ited to pneumatically actuated controllers and
low-order local control loops.
With the help of process monitoring and
control systems, advanced control strategies can
be built up in modular form. The modules per-
form both computing and dynamic functions, so
that a variety of signal processing algorithms can
be selected for optimal control strategy.
The control of material streams, plant optimi-
zation, and balancing is implemented by process
control computers at a level above the process
control systems. These computers may have an
Vol. 8
on-line function or a data management function.
Software vendors offer appropriate modular soft-
ware. Such programs are linked together to per-
mit control of products by centralized programs.
Optimization programs did not gain wide use
until stable on-line analytical instruments with
short response times were developed. The addi-
tional investment is amortized after as little as
one to two years. Complicated analytical sys-
tems, however, have higher costs for mainte-
nance, which is performed by specially trained
personnel.
Analytical instruments are built in prefabri-
cated enclosures and tested at the vendor’s work-
shop. Installation simply involves connecting the
process loop lines, utilities, and data cables.
Plant Safety and Availability. Regulations
on plant safety and environmental protection
have rapidly become more stringent, influencing
the choice of automation hardware and system
structure. Safety control requires the use of re-
dundant systems approved by the regulatory
authorities. Interfaces connect these systems to
the process control system, special attention
should be paid to transmission time between the
different systems.
Process Monitoring and Control System.
In petroleum refineries and petrochemical plants,
it is often necessary to operate 3000 – 4000 loops
and give the plant operator access to these in a
meaningful order.
Sensor signals relating to the process and
control functions, along with signals to motor
control centers (MCC) and valve actuators, are
handled in the processing stations, which per-
form configured tasks such as signal condition-
ing, control, and signal processing. The proces-
sing stations are assembled from modules and
tailored to individual functions. Process informa-
tion is transmitted to the operating and monitor-
ing system via serial busses.
The chemical plant is controlled with exten-
ded software functions for graphical display,
along with process graphics overlays. The hier-
archical information structure of data represen-
tation leads the operator to the proper level in the
information structure. The alarm functions notify
the operator directly of the inititating measuring
point in the process. The automation structure is
governed by the following important criteria:
Chemical Plant Design and Construction 313
1. Size of process plant
2. Continuous or batch process
3. Behavior of process over time
. Steady and stable
. Product output or quality strongly affected
by load variations and/or perturbations
4. Complexity of process
. Simple control strategies
. Complex interdependences
. Frequently changing recipes
5. Local or central process control
6. Startup and shutdown strategies
7. Upgradability
8. Amenability to changes
9. Capability of linking with automation sys-
tems at other plants, other monitoring/con-
trol levels, or information systems
10. Type of reporting
11. Safety, availability
12. Standardization
13. Environmental restrictions
14. Maker and service capabilities
15. Personnel considerations (crew size,
qualifications)
16. Economic and management aspects
Only close collaboration between process en-
gineering and process control specialists belong-
ing to the staff of the engineering contractor and
the owner can ensure proper decisions.
In the central control room, the operating and
monitoring devices collect all needed process
information. All signals from the plant (flow,
pressure, temperature, etc.) are dynamically dis-
played on a screen. Two to three screens per
workstation, with the necessary operating fea-
tures (touch screen, light pen, keyboard), have
proved optimal with regard to cost and volume of
information. The process control system in-
cludes reporting features that maintain a contin-
uously updated record of alarm and condition
reports, series of measurements, balances, and
operator actions. Trend displays of the process
variables are replacing conventional chart recor-
ders. The latter are needed only as required by the
regulatory authorities (e.g., emission measure-
ments) or to record guaranteed values (e.g.,
temperatures in a catalyst bed).
The workstations and peripherals should be
arranged so that the operator sees the whole
working field as a closed area and operators can
314 Chemical Plant Design and Construction
Figure 32. Control room, courtesy of Lurgi AG
exchange information in order to coordinate their
actions in case of abnormal occurrences
(Fig. 32).
Engineering of Control Systems. It is use-
ful to break the engineering of modern measure-
ment and control equipment into field devices
and central control rooms (process control sys-
tems). Different levels of detailed knowledge are
needed for these two areas. The high rate of
innovation in process monitoring and control
systems demands continuous retraining of the
design engineers.
The main activities involved in engineering
follow and make use of computer-aided engi-
neering (CAE) systems with different software
requirements:
1. Preparation of basic documents such as
coding system, power supply and distribu-
tion, materials of construction, P & I dia-
grams, control strategy, functional dia-
Vol. 8
grams for process and device control sys-
tems, instrument list, quantity structure list,
requirements for process measurement and
control system
2. Preparation of instrument specifications such
as data sheets for all instruments to be in-
stalled, with information on designation of
measurement location, process data, man-
ufacturer’s data, materials of construction
3. Engineering of process measurement and
control system: configuration documentation,
process graphics, loop sheets, description of
process measurement and control system
4. Planning of central facilities such as power
distribution, instrument cabinets, monitoring
rooms
5. Preparation of installation documents such as
cable run plans, cable lists, hookups, and list
of installation materials
The pareparation of as-built documents
once the plant has been commissioned and the
maintenance of important documents thereafter
Vol. 8
facilitate plant maintenance and the remedying
of malfunctions.
Information on reliability, maintenance cost,
spare parts management, experience, availability
over an extended time, and service are important
factors in the selection of instruments and sys-
tems. Ease of access to instruments and systems
greatly reduces the number of plant malfunctions
and thus increases profits.
5.4.6. Electrical Design
The objective of electrical design is to supply
electric power reliably and economically to all
consumers. The designer does not create isolat-
ed solutions component by component but must
find the optimal solution for the system as a
whole.
Design begins where high-voltage power en-
ters the plant, and may include medium- and low-
voltage switchgear, transformers, generators,
emergency backup systems,lighting,grounding,
and communications. It covers three areas:
1. Planning of power generation and distribution
2. Planning of electric utilities
3. Installation planning
Planning of Power Generation and Distri-
bution. The operator wants to optimize use of
the electric power and to insure that the system
can handle short- circuit loads, that the power
grid can handle short- circuit loads, that the pow-
er grid offers the necessary reliability, that in-
vestment costs are minimized, and that operating
costs are held down.
The following points therefore have to be
examined carefully in the design of the distribu-
tion grid:
1. Selection of voltage levels
2. Determination of transformer ratings
3. Location of load centers
4. Location of distribution stations (with allow-
ance for danger zones)
5. Reliability of supply from electric utilities
and/or in-plant generating capacity
6. Materials of construction
The elements of the electrical grid must be
selected and sized. The use of powerful com-
Chemical Plant Design and Construction 315
puter programs is indispensable (to keep the
consumer list, perform short- circuit/load –
flow calculations, determine the run up behavior
of motors, and carry out the sizing of cables).
The results of these steps are entered in the block
diagram.
The list of electrical consumers gives a de-
tailed description of energy consumption and
provides the basis for the energy balance, in
which the installed power and net power demand
are calculated.
Planning of Electric Utilities. Once the
results of the above activities are available,
documents needed for specifying the electrical
utilities are prepared. These include technical
specifications, engineering data sheets, circuit
diagrams, cable lists, terminal diagrams, and
mimic diagrams. These technical procurement
documents form the basis for bid comparisons
and order specifications. The plans are prepared
by CAD methods.
Installation Planning. Electrical installa-
tion accounts for a significant fraction of invest-
ment costs, so detailed planning is a prerequisite
for economic execution. At this stage access to a
plant model is extremely helpful.
The installation plans are drawn up by CAD
methods on the basis of layout plans and
comprise:
1. Position plan for electrical consumers
2. Cable run plan
3. Cable run sections
4. Grounding position plan
5. Lighting layout plan
6. Hazardous area classification
7. Layout plan for communication systems
On the basis of the designs and documents
prepared, the quantities needed are determined
and bid invitations are prepared for bulk materi-
als and installation. The ordered equipment is
inspected at the workshops to check for compli-
ance with the specifications.
The cost of electrical equipment and materi-
als makes up 6 – 10 % of the total chemical
plant costs. The high end of the range applies
to grass-roots plants where a new infrastructure
must be created. For further information, see
[134], [135].
316 Chemical Plant Design and Construction
5.5. Procurement
Procurement activities consist of three main
tasks:
1. The purchase of plant components and
services
2. Expediting during the fabrication of plant
components (i.e., supervising the fabrication
sequence of plant components according to an
agreed time schedule)
3. The shipping of plant components to the
construction site
In U.S. oriented regions, workshop inspection
of plant components also comes under this
heading.
Depending on the terms of the contract, the
engineering firm procures plant equipment in its
own name or in the name and on behalf of the
investor. The procurement department of an
engineering firm is acquainted with the world
market and carefully observes trends. The pro-
curement and engineering activities are closely
linked together. The purchasing and shipping
agents as well as the expediters are also members
of the project team, and thus subordinate to the
project manager. Procurement man-hours make
up 8 –12 % of total engineering hours spent on
project execution.
5.5.1. Purchase of Equipment and Services
The main steps in purchasing are:
1. Preparation of a vendor list, possibly in
collaboration with the investor
2. Preparation and dispatch of bid invitations
based on requisitions written by the special-
ist engineers
3. Handling queries from bidders, checking on-
time receipt of bids, checking received bids
for completeness
4. Checking bids for comparability by the
engineer
5. Preparation of bid comparison and order
recommendation by the purchasing depart-
ment
6. Checking the order recommendation (by
cost engineers, specialist engineers, and pos-
sibly the project manager)
Vol. 8
7. Negotiations with the assistance of the spe-
cialist engineer and possibly the project
manager
8. Preparation of order documents
9. Checking order confirmation
10. Approval of bill payments after confirmation
from the specialist engineer
11. Compilation of lists of bid invitations, bid
comparisons, and orders
Bid Invitations and Comparisons. The en-
gineer responsible for a particular discipline
prepares specifications for the components he
needs in the form of data sheets, guide drawings,
descriptions, and information on when each item
will be needed. These documents are sent to the
purchasing department, which adds relevant
business conditions and sends the packages to
selected bidders. The potential bidders are cho-
sen by the responsible engineers and purchasing
agents when the vendor list is drawn up. If goods
are purchased in the name and on behalf of the
investor, the investor commonly has a say in the
process. Good definition of equipment items
covered by the bid invitations is important so
that bids from competing vendors are compara-
ble as to content and thus price.
The above procedure is also followed in the
procurement of services. The technical docu-
mentation (e.g., for installation of piping) is
prepared by the specialist engineers responsible
for piping, in close cooperation with the erection
planning department. This documentation in-
cludes the piping material takeoff, plant layout,
specifications for piping installation, information
on material storage capabilities, and schedules.
The received bids for plant components and
services are examined by the responsible engi-
neers to insure that they are comparable and
conform to the requirements stated in the bid
invitations. Bidders may often be asked to correct
their scope of delivery and services. The bid price
may be adjusted as a result.
Technical bid comparison is followed by com-
mercial bid comparison and an order recommen-
dation. Often, the final decision is only made after
verbal negotiations with two or three bidders.
Decision criteria include not only lowest price but
also the technical reliability of the plant component
covered by the bid, the experience and reliability of
the manufacturer, and the vendor’s solvency and
workshop capacity utilization.
Vol. 8
Orders. Especially in the case of complicat-
ed plant components and large service packages,
the order often goes out in abbreviated form by
Telex, to make the best possible use of the
agreed-on lead time. The detailed order docu-
ment follows immediately. The order is prepared
by computer-aided techniques so that, for exam-
ple, the value of the order is transferred directly
into the computer-aided cost control system.
If the plant components are clearly defined,
the specification used for the bid invitation can
also be employed for ordering. For larger and
more complicated items, the scope of delivery or
service must be unambiguously described with a
statement of exclusions. Imprecision at this point
can result in unpleasant confrontations with the
vendor. Receipt of the order is confirmed in
writing by the vendor.
5.5.2. Expediting
The engineering firm has an obligation to the
investor to erect the plant within a certain time.
The time schedule agreed between the engineering
firm and the vendor must therefore also be com-
plied with. The engineering firm establish a pro-
duction schedule monitoring system for this pur-
pose. Supervision begins as soon as stocks of
material are ordered, it covers the manufacturer’s
design work (workshop drawings) and other pro-
duction steps. Expediters from the engineering
firm carry out their checks by telephone calls and
regular visits to material vendors and the manu-
facturers of plant equipment. They report regularly
to the expediting engineer and the project manager.
When delays are expected, corrective mea-
sures must be instituted in collaboration with the
manufacturer (e.g., changing material vendors,
weekend work, night shifts).
5.5.3. Shipping
The packaging and shipping of plant components
to the construction site may be included in the
order given to the vendor, or may be the respon-
sibility of the engineering firm. In larger projects,
the engineering firm should take responsibility
for coordinating and supervising packaging and
shipping. The principal activities of the shipping
department are:
Chemical Plant Design and Construction 317
1. Checking the specifications for packaging,
shipping, payments, and duties (these are
usually part of the contract with the investor)
2. Drawing up plans for the delivery of
equipment
3. Issuing standard invoices for import licenses
4. Obtaining packaging bids and issuing
orders
5. Checking container lists and obtaining
transport approval for large and heavy
containers
Further activities include booking freight
space, procuring insurance, and supervising
loading and transport. Shipping, customs, and
bank documents (including invoices) must also
be prepared. Finally, damage and faults must be
taken care of.
5.6. Planning and Execution of Civil
Work and Erection
The main execution phases of a project up to
mechanical completion (engineering, procure-
ment, civil work, erection) overlap one another
in time. The sequence of engineering work
should guarantee that
1. Plant equipment with long delivery times
(e.g., compressors, complicated apparatus)
can be ordered as early as possible
2. Civil work (e.g., foundations, cable ducts,
buildings) is begun early so that equipment
erection is not delayed
Civil work should be begun as soon as the
engineering work is 25 – 30 % complete.
By way of example, Figure 33 shows the
project master schedule for the design and
construction of the expansion of a refinery
complex including the progress curves for
engineering and construction. The time to
mechanical completion is 30 months if basic
engineering (which must be performed by the
licenser) is complete at the outset. Usually the
time required for basic engineering is four to
six months. Figure 33 also shows that engi-
neering office work is only complete by the
time of ‘‘mechanical completion.’’ The re-
maining work includes the preparation of final
documentation.
318 Chemical Plant Design and Construction
Figure 33. Project master schedule (refinery expansion project)
5.6.1. Planning of Civil Work and Erection
The planning of civil work and erection is part of
detail engineering.
5.6.1.1. Planning of Civil Work (Including
Structural Steel Work)
As a rule, engineering for civil work and struc-
tural steel is done by engineers in the civil
engineering department assigned to the project
team. Often, however, their activity is limited to
basic civil design, while detailed civil design is
assigned to engineering firms in the country
where the plant will be built. These firms are
familiar with local conditions, know the local
regulations, and have short lines of communica-
tion to the construction site and the firm perform-
ing the civil work.
Important information required at the start of
basic civil design includes:
Vol. 8
1. Soil evaluation report that contains, data on
the subsurface soil conditions at the plant site,
water table, water analysis, and soil bearing
capacity. It should also give settlement cal-
culations so that plant components subjected
to severe dynamic loads can be calculated and
designed.
2. Data on the proposed wastewater system.
3. An approved layout.
4. Geological and climatic figures such as earth-
quake factor, prevailing wind direction, and
severe snow conditions.
5. Static and dynamic load data for the founda-
tions of machinery, equipment, furnaces, and
steel structures.
6. Footprint dimensions of machinery and
equipment: piping and cable cutouts in floors,
platforms, and walls.
On the basis of this information, preliminary
plans are drawn for foundations, buildings, steel
Vol. 8
frames, traffic routes, underground piping, se-
wers, wastewater systems, and heating/ventila-
tion/air conditioning systems. They are the basis
for detailed planning by the civil engineering
subcontractor or in the office. Together with the
estimated quantities determined for steel and
concrete, these documents are used in inviting
bids. The detail engineering for structural steel is
usually carried out by the structural steel
supplier.
After the submitted bids have been evaluated,
the contractors for civil work and structural steel
are selected on the basis of qualitative and price
aspects.
5.6.1.2. Erection Planning
Planning the installation of plant equipment
starts at a relatively early stage in the engineering
process. The sequence of installation activities
can strongly influence the detailed scheduling of
engineering and procurement. The schedule for
overall project execution should be developed
backward from the agreed mechanical comple-
tion date and specifically for equipment with long
delivery times. In large plants, separate schedules
are worked out for each plant section. Erection
schedules are revised at intervals throughout
detail engineering and procurement as the agreed
equipment delivery times are incorporated into
the schedules.
Drawing up the plot plan calls for the cooper-
ation of an experienced erection engineer, who
must consider in particular the erection require-
ments for heavy components (space requirement,
accessibility).
The land on which the plant will later be
built must be prepared prior to construction
work. The planning of temporary facilities is
generally the responsibility of the engineering
firm. Besides surveying and leveling, it is nec-
essary to plan for the delivery of utilities and
the removal of runoff and sewage. Other facili-
ties include construction offices, stores, open-
air storage areas, site roads, site fencing, piping
prefabrication shops, communication facilities,
toilets, first-aid station, guardroom, changing
rooms, and accommodation for subcontractor
personnel.
The engineering firm subcontracts installation
work to qualified firms specializing in the erec-
tion of structural steel, apparatus, machinery, and
Chemical Plant Design and Construction 319
installation of piping, electricals, and control
systems. Subcontracting takes place in the detail
engineering stage as soon as sufficiently exact
information is available on the plant components
and bulk materials. This is especially important
when installation is covered by a fixed-price
contract.
5.6.2. Execution of Construction
The construction work performed by specialist
subcontractors is generally directed by the engi-
neering firm. If the contract provides for the
investor or a third party to do the construction,
the engineering firm only supplies technical ad-
visory services.
5.6.2.1. Construction-Site Organization and
Management
The construction manager and his team super-
vise, coordinate, and direct construction. Re-
sponsibility for all site activities belongs to the
construction manager, as specified in the con-
tract, relevant codes, and regulations. The con-
struction manager is answerable to the project
manager and is the engineering firm’s principal
representative to the investor on the site. The
organization of the construction team must take
account of the size and complexity of the project,
time schedule, local conditions, and contractual
obligations.
Figure 34 shows a typical site organization for
a large project. Commonly the investor maintains
a similar, but smaller organization so that dis-
cussions can be carried on at all technical levels.
The main tasks of the construction site team
are:
1. To plan, coordinate, and manage all site
activities
2. To arrange for site offices and establish site
security systems
3. To organize and oversee materials manage-
ment
4. To perform scheduling and progress control
5. To define working methods
6. To prepare and carry out quality control
7. To establish and supervise work safety
procedures
320 Chemical Plant Design and Construction
Figure 34. Organization of a construction team
8. To coordinate and oversee the work of con-
struction subcontractors
9. To manage and clarify the construction
documentation
10. To implement a cost control system and
arrange payments
11. To prepare construction-site orders
12. To prepare deficiency reports and control
insurance cases
13. To prepare as-built drawings
14. To implement a change order management
system
15. To submit reports to the investor and the
project manager
16. To direct and oversee functional tests
17. To initiate and direct the final plant inspec-
tion and, when the plant is mechanically
complete, to pass it on to the commissioning
manager or turn it over to the custody of the
future plant operator
5.6.2.2. Time Scheduling and Progress
Control
Time Schedules. An overall construction
schedule is created during detail engineering.
Vol. 8
This plan is continually refined as new informa-
tion becomes available.
Construction work calls for more detailed,
individual schedules for on-site activities, which
allow better monitoring of individual jobs and
fast response to schedule changes.
Experience shows that detailed construction
network diagrams are unwieldy because of the
large quantity of data. Individual schedules for
use at the construction site are therefore usually
prepared as bar charts that also show the inter-
dependencies between the various activities.
Two types of bar charts are usually used:
1. Detail schedules for plant sections, subdi-
vided according to functional disciplines.
These charts form the basis for assessing
progress of work.
2. Detailed schedules for each functional disci-
pline that include all plant sections. These
charts are used for capacity planning for
construction personnel and their tools, equip-
ment, materials, and consumables.
Progress of Work. Regular evaluation of
progress in construction provides reliable
Vol. 8
information about the current status of the proj-
ect. Schedule changes show up and measures can
be planned and carried out early enough to insure
on-time completion of the plant.
Progress planning is based on a detailed
schedule, list of plant components, material take-
offs, and specific rating factors. A specific rating
factor is an empirical number of hours required
for a specified activity (e.g., hours per tonne, m3,
or piece). If there are no rating factors, the hours
required for stated activities are estimated in
advance.
The total number of hours thus found for each
activity is allotted to the planned execution time
for individual activities. Expressing such allot-
ments in percent allows a target progress curve to
be determined for each functional discipline in
each plant section; this curve serves as a refer-
ence for monitoring construction progress.
Progress in each special discipline is evaluat-
ed every two to four weeks. Activities not com-
pleted at the time of progress assessment must be
included. The activities of the special disciplines
are therefore divided into steps and evaluated. A
breakdown for above-ground piping installation
serves as an example:
Prefabrication:
Pick up material 2%
Prepare and tack parts 16 %
Weld 16 %
Fit up and weld small parts 6%
Installation:
Transport 5%
Install, tack 20 %
Weld 11 %
Attach clamps, supports 9%
Inspection:
Do preliminary tests, remedy deficiencies 6%
Pressure test, flush 7%
Do final test and prepare report 2%
Total 100 %
Assessments of individual operations result
from years of experience. The progress values
found for each discipline are then summarized
for each plant section, yielding the progress for
each plant section or the plant as a whole. These
values are compared with the planned target
progress values. If there are deviations, the
causes are analyzed and appropriate measures
taken.
Chemical Plant Design and Construction 321
The progress report contains the above infor-
mation and is an essential part of the regularly
updated construction-site report.
5.6.2.3. Construction Work [123]
Work at the construction site begins with prepa-
ration of the terrain. The plot must be surveyed,
graded, and terraced if necessary. Access roads
must be laid out and old structures demolished.
Utilities for construction must be brought in.
Construction-site offices, storage areas, and
workshops must be built. Accomodation (con-
tainers) for construction personnel must be
provided.
The construction work begins with excavation
and foundation work. If the soil quality necessi-
tates driving piles, this must be done first. The
sequence of pouring foundations depends on the
order in which equipment is to be delivered and
installed.
The first step in erection is the erection of
heavy equipment (reactors, towers) and steel
structures (pipe bridges and equipment support-
ing frames). Very large process equipment often
cannot be shipped in one piece. Tall towers are
divided into sections, while large tanks are de-
livered in the form of prefabricated pieces. The
tools needed for assembly (e.g., welding and
cutting machines) and facilities for stress-relief
annealing of the welds must be provided at the
site. If possible, the delivery of heavy units
should be scheduled so that they can be placed
on their foundations or supported in their frames
immediately. Specialists provided by the manu-
facturer usually assist in the installation of
pumps, compressors, and turbines, as well as
‘‘package units’’ such as refrigeration systems
and complicated conveyors; these experts later
commission the components installed.
Piping installation at a chemical plant is often
the most labor intensive and longest phase of
installation. It starts with the placement of un-
derground pipelines,the mounting of straight
piping on bridges, and the prefabrication of
piping. When the number of connection points
to apparatus and machinery is great enough (i.e.,
when the devices have been delivered and put in
place), the prefabricated piping sections are con-
nected. Satisfactory progress in prefabrication
and smooth installation of piping depends on
skillful scheduling of the preparation of isometric
322 Chemical Plant Design and Construction
drawings and the observance of this schedule.
Furthermore, the procurement of piping material
should be scheduled so that the material for
prefabrication arrives at the site on time. Com-
puter-aided integrated material management sys-
tems are a great help in the handling of bulk
material.
Weld inspection is carried out by X-ray meth-
ods. Which piping is to be inspected depends on
the quality assurance specifications.
After a pipe run has been installed, it is
pressurized with water to reveal any leaks. The
pressure test is documented in a report and the
piping is approved for painting or insulation.
Insulation work starts at vessels, towers, and
reactors and often requires the construction of
complex scaffolds. Pipes should not be insulated
until a given plant section has a sufficiently large
number of pipe runs that have been approved for
insulation.
The installation of electronic devices and
control systems takes place after a section of
piping has been completed. Devices in control
rooms and substations can, however, be installed
independent of other work as soon as the build-
ings have been completed. Underground electri-
cal cables are layed after piping. Electrical and
pneumatic cables for measurement and control
are installed in cable ducts after the completion of
underground work. The laying of cables on cable
trays is put off until as late as possible to prevent
damage during simultaneous piping installation.
The same applies to the installation and junctions
of field instruments.
Furnaces are lined with refractories before
shipping to the site or on site. Trays are installed
in towers after access to the towers has been
provided by platforms and ladders. Lightning
protection and grounding wires are installed at
an early stage, during the fill work of foundation
excavations.
Functional tests of the installed equipment
mark the end of erection work. These tests are
done with the plant in the cold condition and with
no product.
The contract must precisely define ‘‘mechan-
ical completion,’’ since the contractual obliga-
tions of the engineering contractor to the inves-
tor often end at this point. Responsibility for the
commissioning of the plant may lie with the
investor, the licenser, or the engineering con-
tractor. Generally speaking, a plant is mechani-
Vol. 8
cally completed when subsequent commission-
ing will not be delayed or disrupted by installa-
tion work and that the safety of the plant is fully
guaranteed.
The certificate of mechanical completion is
usually accompanied by a ‘‘punch list’’ that
defines all installation work that is still outstand-
ing and to be done in the commissioning phase.
The certificate is generally granted when the
following activities have been performed:
1. Pressure testing of equipment and vessels
with air, water, or nitrogen
2. Purging and, if necessary, chemical cleaning
and pressure testing of piping
3. Testing of stress-free piping connections to
machinery and checking of rotation direction
and coupling seating
4. Brief trial run of pumps (with water) and of
machinery and motors (as possible without
product)
5. Calibration of measuring instruments, alarms,
interlocks, and cutoff points
6. Functional checking of electrical equipment
and control systems
Figure 35 shows a three-train reformer plant
under construction.
5.7. Commissioning
5.7.1. Plant Design and Commissioning
Commissioning must be considered even during
basic and detail engineering in the design of
equipment, piping, and control systems. Faulty
process design can have serious effects on the
time required for commissioning and the amount
of corrective work needed. The start of produc-
tion may be significantly delayed and the owner
may suffer a substantial loss of production and
revenue.
Difficulties in commissioning and causes of
delays have been identified as [136]:
26 – 29 % faulty design
56 – 61 % failure of plant components
13 – 15 % errors by operating personnel
Vol. 8
Figure 35. Reformer plant during construction, courtesy of Lurgi AG
Commissioning costs as a percentage of total
plant investment are:
5 – 10 % for established processes
10 – 15 % for relatively new processes
15 – 20 % for novel processes
Commissioning should be a special consider-
ation when the piping and instrumentation dia-
gram is designed. A commissioning engineer
with relevant experience should be brought in
during the planning work. This engineer should
prepare the complete operating manual which
should be available before the final version of the
piping and instrumentation diagram.
The experienced commissioning engineer
along with specialists (and maintenance engi-
neers) working for the future plant operator
should also be involved in checking the piping
model. Errors in pipe routing and poor access for
the servicing, installation, and removal of equip-
ment can thus be remedied at an early stage.
Chemical Plant Design and Construction 323
5.7.2. Operating Manual
The operating manual is a condensed ‘‘reference
book’’ for the entire plant. It should contain all
important details about the design and opera-
tion. The typical contents of an operating man-
ual for a chemical plant follow [123], [136],
[137]:
Part I. Operating Instructions
1. Design Principles
Statement of the type, purpose, and capacity of
the plant; specification of quality and quanti-
ties of feedstocks and products (including
waste streams); utilities and consumables.
2. Description of the Process and the Plant
2.1. Description of the process with its princi-
ples (e.g., chemical and physical principles of
the process stages). The process itself is dem-
onstrated by process flow diagrams showing
equipment, machinery, and instruments and
important process conditions.
324 Chemical Plant Design and Construction
Auxiliary systems such as refrigeration, steam, or
slop (wastewater) systems are similarly
shown. The delivery and disposal of utilities
and consumables is also discussed.
2.2. The plant description covers the designs of
the individual plant sections, the functions of
their components, and the control of the in-
stalled unit operations.
2.3. Material balances.
2.4. Process principles and guidelines for plant
operation explain the theoretical basis of the
process, as well as the process variables and
their effects on product quality or composi-
tion. Diagrams, formulas, nomographs, and
tables allow estimation of these variables
(e.g., raw-materials composition, cooling wa-
ter temperatures).
3. Special Equipment
This chapter contains an in-depth description of
special-purpose or critical equipment (e.g.,
reactors, compressors, turbines). A subchap-
ter deals with particularly important or com-
plex control loops or interlockings and emer-
gency shutdown systems.
4. Preparation of the Plant for Commissioning
This chapter lists the preparatory steps required
for commissioning (e.g., flushing, cleaning,
and neutralizing of piping, equipment, and
plant sections; inspections; pressure and leak
tests; inspection of safety devices; mechanical
tests of machinery; drying of furnace refrac-
tory or reactor linings; and specifications for
charging catalysts and consumables).
5. Plant Startup
An outline of the overall plan for starting up the
plant is first given. All startup operations are
then described in detail step-by-step. Special
precautions and unusual design conditions are
highlighted.
The startup instructions are broken down as
follows:
a. Initial startup after installation is complete.
b. Startup after a prolonged shutdown.
c. Restart after a brief shutdown when the
plant is still warm.
d. Procedures for catalyst regeneration or
replacement.
e. Measures to be taken after abnormal oc-
currences. Possible disturbances are listed
together with their effects and countermea-
sures. This section discusses how to reme-
dy problems during operation; how to keep
Vol. 8
plant sections in operation while problems
are being remedied; and how to perform
restart afterward.
6. Plant Shutdown
This chapter describes procedures for planned
and unplanned shutdown of the plant. It is
subdivided as follows:
a. Partial shutdown for periodic catalyst re-
generation or removal of cracking deposits
from furnace tubes
b. Procedure for brief shutdown
c. Procedure for extended shutdown
d. Shutdown on utilities outage
e. Emergency shutdown and special
precautions
7. Analysis Specifications
Analysis specifications: required or recom-
mended number of analyses during commis-
sioning under steady-state operating condi-
tions and exceptional operating conditions.
8. Operating Report
This chapter describes which data are to be
recorded during plant operation. A standard
form for reporting during steady-state opera-
tion or commissioning is recommended.
9. Safety Practices
The safety regulations are summarized. Potential
hazards are discussed, and the behavior of the
operating personnel is recommended or pre-
scribed. Information about safety facilities
and the locations of first-aid stations is given.
10. Miscellaneous
List of blinds, setpoints for alarm and switching
functions.
Part II. Drawings and Equipment
Specifications
1. Drawings
This chapter contains drawings that relate to the
process or to the plant as a whole:
a. Process flow diagrams and P & I diagram
b. Plant layout plan
c. Underground plan
d. Selected overall drawings of important
equipment (e.g., reactors)
2. Specifications
Equipment design specifications are compiled.
Relevant drawing numbers, technical pro-
curement specifications, and other documents
containing supplementary information are
also noted.
Vol. 8
3. Equipment Manufacturers Operating Instruc-
tions
Part III. Technical Documentation and
Drawings
Manuals are prepared for each engineering dis-
cipline. These manuals show all specifications
and drawings relating to plant components
and their operation and maintenance.
5.7.3. Responsibility and Organization
Responsibility for commissioning generally lies
with the party granting the process license: the
investor/owner, licenser, or the engineering firm.
The commissioning team is led by the commis-
sioning manager. The key positions are occupied
by experienced startup engineers. Startup opera-
tion goes on around the clock, so that an adequate
number of startup engineers must be available for
shift work.
In large plants involving two or more process
steps, it is desirable to break the plant down into
sections and assign responsibility for each to a
smaller startup team.
On mechanical completion of the plant most
of the installation personnel leave. Some special-
ist engineers remain on site, however, especially
those involved with piping, electricals, control
systems, and machinery, who solve problems
that arise during commissioning.
The actual manual commissioning activities
are generally performed by personnel of the
operator who have already gone through class-
room training. The operating personnel can often
be trained in similar plants operated by associa-
ted firms.
5.7.4. Preparation for Commissioning
The commissioning manager must ensure that
the plant is supplied with the necessary quantities
and qualities of feedstocks, utilities, consum-
ables, and energy in time for the planned start
of commissioning. Spare parts and a fully
equipped repair shop must also be available. The
cooperation of specialists provided by the man-
ufacturers is essential for the commissioning of
complicated equipment (e.g., compressors, re-
frigeration plants).
The plant laboratory has a vital function dur-
ing commissioning. Analytical data are an im-
Chemical Plant Design and Construction 325
portant input to process control. Sampling and
analysis programs must be prepared and dis-
cussed with the laboratory.
The commissioning team should be present on
site during the final installation phase. While the
installation team performs function tests, the
commissioning engineers perform a detailed
check of the plant, focusing on process design
and operation (e.g., inspection of towers, inter-
nals, and control systems). Changes requested by
the commissioning team can then be carried out
by the installation team.
When the commissioning manager is con-
vinced that the plant is ready for operation, he
takes over responsibility for further activities
from the erection management.
5.7.5. Plant Startup
The measures described in Sections 5.7.3 and
5.7.4 apply to chemical plants in general, where-
as activities during the initial startup of a plant
depend on the type of process.
Commissioning takes place step by step as
specified in the operating manual. The first units
to be started are utilities and off-sites (e.g., cool-
ing water loop, steam generation). At the same
time, lined furnaces are dried and heated in
accordance with the vendor’s specifications. The
catalyst is charged, reduced when necessary, and
brought up to reaction temperature. Plants in
which combustible media circulate must be
purged with inert gas so that they are oxygen-
free before charging. Steam lines must be care-
fully dewatered.
All measurements are recorded and balances
are run so that incorrect behavior of the plant can
be quickly detected and corrective measures
instituted.
Initial disorders are almost always encoun-
tered: these result, for example, from utilities
outages, mechanical damage, and hot running of
bearings or stuffing boxes. An attempt should be
made, however, to get the plant running first and
start up all systems, provided the safety of per-
sonnel and equipment is not endangered. The
defects can then be remedied during the first
scheduled shutdown of the plant.
After operation has stabilized, conditions are
optimized. When the planned values of product
quantity and quality, utilities consumption etc.,
326 Chemical Plant Design and Construction
have been attained, the guarantee test is carried
out. Guarantee values and conditions for per-
forming the guarantee test are stipulated in the
contract.
If the test results are satisfactory, a report for
handover of the plant to the owner is signed.
Responsibility for the plant and its operation now
shifts to the owner. Any defects still to be re-
medied are entered in a punch list and a deadline
for corrective action is established. Generally the
service life of plant equipment is guaranteed for a
further, contractually agreed period (parts sub-
ject to wear are usually exempt from this guar-
antee). Whether this guarantee is the responsi-
bility of the manufacturers or the engineering
firm depends on the contract. Figure 36 shows
part of a plant complex for olefin production.
6. Computer Support
Most engineering contractors have invested
heavily in computerization, with the emphasis
Figure 36. Section of an olefin complex, courtesy of Lurgi AG
Vol. 8
on computer-aided design (CAD), computer-
aided engineering (CAE), design calculations,
data-base management,and office communica-
tion sys-tems [138]. Decisions on the use of such
systems, in particular CAD and CAE, are driven
by benefits, chiefly reductions in costs and turn-
around times, gains in the transparency of meth-
ods used, and systematic support for project
procedures.
6.1. Role of Computers in Project
Execution
A variety of systems based on discrete and closed
mathematical models are employed in process
engineering for the simulation and design of
processes. They can be accessed from mainframe
computers, workstations, or personal computers
(PCs).
For special processes, firms use internally
developed programs and modules based on stan-
dard PC software. Internationally recognized
Vol. 8 Chemical Plant Design and Construction 327

simulation programs are employed to prepare ical staff work with PC support connected to laser
mass and energy balances and to optimize printers.
heat-exchanger systems. Powerful systems are
also available for computer-aided process analy-
sis in large plants, dynamic simulation, and plant
6.2. EDP Infrastructure and Systems
optimization.
Progressive engineering companies strive for
Project management uses computer software
complete system integration so that engineering,
with a high degree of integration for scheduling,
commercial, and management data can be uti-
cost planning, and project control. These systems
lized in interlinked modules. In addition to main-
are generally accessible on both mainframes and
frame computers, PCs are increasingly used for
PCs.
individual support at engineering workstations.
The specific applications of computer systems
The growing demand for ‘‘distributed intelli-
vary. Graphical documents (e.g., process flow
gence’’ and advances in computer capabilities
diagrams, P & I diagrams, loop diagrams) are
are now leading to the use of interconnected,
prepared with CAD systems which are being
decentralized workstations with alphanumeric
increasingly linked to engineering data bases.
applications (data bases, calculations) and graph-
Two-dimensional design instruments are in
ical ones (CAD). Extensive standardization of
widespread use for site layout planning and plant
the data-processing infrastructure is desirable.
de-sign; three-dimensional design systems are
The variety of software systems used in proj-
occasionally used in special piping-intensive
ect execution are illustrated by the following
projects [139].
examples:
The advantages of graphics in plant design are
Design Calculations. Many software systems
the consistent and systematic use of models and
are developed in-house for the process design and
overlays and the reuse and evaluation of graphi-
engineering of plant equipment. The following
cal elements with variable intelligence [140].
general-purpose programs are also commercially
CAD use improves collaboration between
available:
individual disciplines. For example, if plant and
civil engineering both use the same CAD system,
plant design can be optimized ‘‘at the source.’’ PROCESS, ASPEN PLUS simulation programs, flow sheeting
Engineering calculations can be performed SDC material data compiler
HTRI design of heat exchangers
with PC programs developed in-house or with ROHR2 strength calculations for piping
internationally recognized standard software PROBAD/FEZEN strength calculations for apparatus
products. ANSYS, STRUDL finite-element method (FEM)
Standard systems are predominant in direct programs for structural analysis and
material and heat flow
daily use by engineers. In subfields, such as
finite-elements design, tasks are delegated to
specialists who can perform optimizations with Data-Base Management Systems. The fol-
special computer tools. lowing list includes systems developed by Lurgi
Every step in the procurement of equipment is from relational data-base systems:
computer-aided. All data and functions are inte-
grated into a system that performs bid invitation,
ANSY mechanical equipment
bid comparison, ordering, expediting, and ship- LUPREA electrical equipment
ping. Relevant data are available not only to the MASY control systems
cost control system but also to accounting. As a MVS/LUROMAK piping
rule, the entire accounting process is also DISPO disposition of bulk materials
MOSY management of materials on-site
computer-aided. BISAM bid invitation and ordering
Specialized relational data-base systems are VERONA shipping
widely used in the procurement of plant compo- ATERM expediting
nents and bulk materials. These systems are KAPAZ capacity planning
KOKO cost control
linked by interfaces. DOSY documentation and archiving
Administrative functions are supported by REPRÜ accounting
integrated office communications systems. Cler-
328 Chemical Plant Design and Construction
Graphics. Standard systems for graphics ap-
plications include:
CADAM/AEC two- and three-dimensional
plant layout and design
INTERGRAPH/IGDS, CADEX preparation of P & I diagrams
AUTOCAD preparation of P & I diagrams
in special fields
6.3. Coordination and Interfaces
Growing importance is now attached to the fast,
error-free transfer of information generated in
computer-aided operations of the engineering
firm during project execution, to the owner and
to engineering partners (and vice versa). Accord-
ingly, the partners must arrive at a good under-
standing as to the content of documents and data
files to be transmitted; standards and codes (data
structures, nomenclature, symbols); and data
formats and EDP procedures.
The definition of interfaces between two dif-
ferent EDP systems is an important factor in data
transfer. Standardization of interfaces to a reli-
able extent does not yet exist for plant design and
construction. Various engineering companies
have devised interfaces for two-dimensional
plant layout and design so that drawing data can
be flexibly transmitted to any computer system.
7. Quality Assurance
The primary goal in the design and construction
of chemical plants is to satisfy quality require-
ments. These are defined by agreement between
the investor and the engineering contractor, by
legal regulations, and by objectives set by the
engineering firm. The quality requirements are
generally specified in the contract between the
investor and the engineering firm.
Quality assurance is ensured by installation of
relevant systems. These quality assurance sys-
tems cover all technical and organizational prac-
tices needed to achieve the desired quality.
Requirements for quality assurance systems
are defined in standards. The international stan-
dards ISO 9000 – 9004 have already been incor-
porated into most national standards systems
[141]. Increasing numbers of quality assurance
systems have been developed, introduced, and
Vol. 8
documented in production and service compa-
nies. Certification of these quality assurance sys-
tems by neutral organizations is in development.
The idea behind the creation of quality assur-
ance systems is that the quality of a product
should not only be established after its produc-
tion, but rather that the entire production process
should be subjected to appropriate quality assur-
ance practices on a phase-by-phase basis. Quality
assurance practices must be defined and imple-
mented for all services performed by the engi-
neering firm itself (e.g., project management,
engineering, procurement, supervision of con-
struction, commissioning).
The company quality assurance system is usu-
ally documented in a ‘‘quality assurance manual’’
which contains information on organizational
structure and processes, as well as the procedures,
means, and methods used to assure quality. It may
also include references to internal procedures and
work instructions which are not part of the manual.
The manual gives the owner and third parties a
summary of the company’s quality policy and
quality system. It is also an instrument for com-
municating the company’s quality policy to man-
agement and employees.
A typical table of contents follows:
1. Quality policy of the company
2. Brief description of the company
3. Elements of quality assurance:
Management tasks
Company quality assurance system
Marketing
Research and development, engineering,
project management
Documentation
Procurement
Fabrication, civil work, erection, commissioning
Measuring and test equipment, inspection
status, corrective action
Quality records
Internal quality audits
Education and training
The quality assurance system must not be
regarded as a fixture that schematizes all proce-
dures – it needs to be continuously improved in
the light of practical knowledge.
An engineering firm does not usually have its
own fabrication capacity or perform construc-
tion services. Equipment as well as construction
Vol. 8
and installation services must therefore be pro-
cured. Suppliers of equipment and firms perform-
ing construction work must demonstrate their
own quality assurance systems to the engineering
firm and allow them to be verified. In addition to
this, employees of the engineering firm monitor
the fabrication of equipment and the construction
work in accordance with established rues to
ensure that delivery and performance are in
accordance with quality requirements and
planned schedules. Such supervision does not,
however, release a manufacturer or a construc-
tion contractor from its contract obligations.
In the normal case, a project can be executed
and meet the quality requirements if the provi-
sions of the quality system are satisfied. In com-
plicated projects or those involving a high degree
of risk or innovation, a quality assurance plan
must be drawn up [142]. This sets forth in detail
the quality practices to be followed during exe-
cution of the project. A quality assurance man-
ager is designated for the project who, after
consultations with the project manager and the
heads of the functional divisions, directs the
quality assurance activities. He is independent
of the project team, reports directly to company
management, and confers with the investor on all
questions of quality assurance.
Many quality assurance practices are involved
in the execution of a project, a few examples
follow:
1. Checking contracts against checklists
2. Defining the degree of checking of technical
specifications and drawings for equipment
3. Implementing design change control
4. Instituting design reviews to check, for exam-
ple, process flow diagrams, layout plans, pip-
ing and instrumentation diagrams, and piping
models
5. Selecting competent manufacturers for criti-
cal equipment
6. Identifying ‘‘hold points’’ and intensity of
inspection for equipment during fabrication
Quality obtained on the basis of an assurance
system ‘‘tailored’’ to the company results in
several important benefits:
1. After consultation of quality assurance docu-
ments, the customer of a production or service
Chemical Plant Design and Construction 329
company can convince himself of the
company’s ability to achieve the agreed-on
quality of the product or service
2. A company’s quality assurance systems, ex-
amined and certified by a competent neutral
organization, can mean a competitive
advantage
3. If a quality assurance system is organized in a
meaningful and expedient manner, agreed-on
quality of a product can be obtained at low
cost and with little expenditure of time
Quality assurance practices must already be
applied, for example, during the design stage for
a piece of plant equipment. Expensive post-
fabrication corrections on a wrongly specified
device are then avoided.
8. Training of Plant Personnel
Preliminary Planning. The people who are
to operate and maintain a chemical plant must
have the necessary theoretical background, prac-
tical training, and know-how.
This applies in particular to personnel in
developing countries, who should participate in
specially developed know-how transfer
programs.
Many owners and operators of chemical
plants write into their contracts with engineering
firms the transfer of operating and maintenance
knowledge to their specialists, supervisors, en-
gineers, and technicians. Training covers techni-
cal and commercial jobs as well as middle and
upper management.
The following questions should be explored at
the feasibility study stage:
1. What level of education exists in the
region?
2. Will skilled labor be available in the region?
3. Is the project a newly-built plant or an expan-
sion of an existing facility?
4. If it is an expansion, can skilled operating
personnel be found?
5. Is the plant a labor-intensive production fa-
cility or one that can run automatically?
6. Can the plant operate autonomously (e.g., in a
virgin forest area or on an island) or does it
require an industrial infrastructure?
330 Chemical Plant Design and Construction
Training Plan. The training plan must be
adapted to the needs of the plant and its surround-
ings and should be workable regardless of the
initial qualifications of the workers being trained.
It should also convey state-of-the-art knowledge.
The training plan comprises organizational
charts, job descriptions, definition of minimum
qualifications of future jobholders, training sche-
dules, and identification of facilities for practical
training. It may also include administrative to-
pics (e.g., how to obtain a visa and residence and
work permits, assistance in finding accomoda-
tion, where to get work and safety clothing,
personal insurance and medical care during the
training period).
The planning documents provide a basis for
hiring tests and results are compared with the
profile of requirements in the job descriptions.
The tests should pose and evaluate technical and
management skills questions. If necessary, an
institute or an industrial psychologist can be
brought in.
Execution of Training. Every participant
should receive a training schedule in which the
subject, day/time, and discussion partner or in-
structor are listed.
Training should take place as late as possible
so that there is no lag between training and job
assignment (fluctuation danger). However, train-
ing activities should be started early enough so
that the future operator’s personnel can see their
own plant demonstrated in the final installation
phase and can perform some functions them-
selves. This improves their sense of
responsibility.
The training program is usually broken down
as follows:
Phase I. Presentation of basic information about the plant.
Phase II. Presentation of generally important instructions on
plant operation, maintenance of machinery, safety
practices, and organization.
Phase III. The trainees are divided into operating personnel,
maintenance personnel, and administrative and
management personnel. When possible, these
groups are trained on the same or similar facilities
for the jobs they will later perform.
Phase IV. During the final phase of installation, the plant
personnel familiarize themselves in depth with their
own plant. The training period ends with active
participation in plant commissioning.
Vol. 8
Training Costs. Training costs comprise
personnel, nonpersonnel, and incidental costs.
Personnel Costs are incurred for the people
who prepare, execute, and coordinate training, as
well as the trainees salaries. Nonpersonnel costs
include payments to the operators of facilities
where training takes place and the outfitting of
training rooms on the construction site. Inciden-
tal costs comprise costs for accomodation, travel,
work clothing, insurance, and utilities. These
may make up a significant fraction of total costs
if the trainees are sent abroad.
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Further Reading
F. P. Helmus, C. Ahner: Process Plant Design, Wiley-VCH,
Weinheim 2008.
R. E. Meissner: Plant Layout, ‘‘Kirk Othmer Encyclopedia of
Chemical Technology’’, 5th edition, John Wiley & Sons,
Hoboken, NJ, online DOI: 10.1002/0471238961.
1612011413050919.a01.pub2.
R. E. Meissner: Plant Location, ‘‘Kirk Othmer Encyclopedia
of Chemical Technology’’, 5th edition, John Wiley &
Sons, Hoboken, NJ, online DOI: 10.1002/0471238961.
1612011413050919.a02.pub2.
G. Towler, R. K. Sinnott: Chemical Engineering Design -
Principles, Practice and Economics of Plant and Process
Design, Butterworth-Heinemann, Oxford 2007.