Infrastructure Finance: Understanding the Project Engineering Process

Project engineering includes all parts of the design of manufacturing or processing facilities, either new or modifications to and expansions of existing facilities. A “project” consists of a coordinated series of activities or tasks performed by engineers, designers, drafters and others from one or more engineering disciplines or departments. Project tasks consist of such things as performing calculations, writing specifications, preparing bids, reviewing equipment proposals and evaluating or selecting equipment and preparing various lists, such as equipment and materials lists, and creating drawings such as electrical, piping and instrumentation diagrams, physical layouts and other drawings used in design and construction.


FEL-1 focuses on conceptual engineering with a focus on opportunity identification. The process included conceptual screening to assess the economic viability of a project in order to meet a legal requirement or to develop an opportunity or a business plan. In FEL-1 client goals may include developing the concepts, evaluating alternatives, and quantifying risks. Deliverables may include preliminary design basis, block flow diagrams, equipment list, and plot plan.


FEL-2 will further develop and refine what was presented in FEL 1. The process will include a focus on development, evaluation, and selection of conceptual alternatives for the continuous development of the project and confirmation of economic viability. In FEL-2 client goals may include selecting the best identified project approaches, quantifying economics, and furthering defining the project. Deliverables may include design basis, PFDs, materials balance, process data sheets, and preliminary equipment layout.


FEL-3 will focus on finalizing engineering reports with a ready development plan and refined process on how to deliver the project successfully. In FEL-3 client goals may include finalizing scope and execution plans, capital appropriation, and contracting. Deliverables may include updates FEL-2 deliverables, P&IDs, equipment specifications, and 3D models.

Engineering, Procurement, and Construction

This phase of the project will take the FEL reporting and begin to execute on what is required to get the project to startup. Procurement includes purchasing, logistics services, and quality control around certain materials and machinery and equipment. Construction will include installation, coordination, site supervision, quality inspection, and commissioning. Client goals may include maintaining budget and schedule and achieving mechanical completion and handover.

Startup and Operations

This phase will focus on operation to achieve design performance and include training and startup assistance and performance testing.



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