December 2004

Special Report: Plant Design and Engineering

Evaluating effects of changes in process plant design

A thorough understanding of the engineering, procurement and construction sequences is vital to comprehensively quantify all potential schedule and cost impacts during the pricing, review and approval process

Long, R. J., Long Interantional Inc.

Owners often issue basic design packages for process plant projects to prequalified engineering, procurement and construction (EPC) contractors as part of a bid request. Owners may represent that the basic design is sufficiently defined to enable the EPC contractor to prepare a fixed-price bid for the final design, procurement and construction of the facility. Despite these representations, and after the contract is signed, owners frequently initiate what they believe to be simple design changes to the EPC contractor's scope of work. Under most contracts, the EPC contractor is required to submit, in advance of performing the changed work, its change order price including all associated

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