Page 241 - Fluid Catalytic Cracking Handbook

Project Management and Hardware Design 209

In a revamp or construction of a new unit, which involves a tech-
nology upgrade, the engineering contractor commonly supplies a set
of product yield projections. Refiners normally use these yield pre-
dictions as the basis when conducting an economic evaluation and
performance guarantee. It is essential that the refiner review these
projects carefully to ensure that they agree with the theory and approach
expressed by the licensor and that similar yield shifts have been
observed by other refiners installing similar technologies. In other
words, the refiner should independently check the validity of projected
yield improvements.
During the FEED phase of the project, the engineering contractor
can be asked to prepare two cost estimates. The initial cost estimate
is usually prepared during the very early stages. The accuracy of this
estimate is usually plus or minus 40% to 50%. This is a factored
estimate of equipment and terms of reference. The second cost estimate
is prepared at, or near, the completion of the FEED package. The
accuracy of this cost estimate is normally plus or minus 20%. This
estimate is usually the basis for obtaining funding for the detailed
engineering stage.
The format of the cost estimate is just as important as the content,
The format can make a difference when proving whether or not the
content is accurate. Therefore, the refiner should require that the
contractor present cost estimates in a format that is easy to understand
and analyze. In addition, the refiner's cost engineer should independently
review the cost estimate to ensure its accuracy and applicability, and
also to determine the contingency amounts that the owner should
maintain in his funding plans.
The FEED package typically consists of the following documents;
• Project scope of work and design basis
• Process flow diagrams (PFD)
• Feedstock and product rates/properties
• Utility load data
• Operating philosophy, start-up, and shutdown procedures
• List of equipment, materials of construction, and piping classes
« Piping and instrumentation diagrams (P&ID), tie-in, and line list
• Instrument index, control valve, and flow element data sheets
• Electrical load, preliminary instrument, and electrical cable routing
• Preliminary plot plan and piping planning drawings