Learn about the common challenges and pitfalls in front end engineering design (FEED) equipment sizing and cost estimation, and how to avoid or mitigate them.

Cost Estimation in the pre-FEED and FEED stages of a project can be a challenge because of methodology used (factored, vs parametric). Reconciling the results from these methods can be time consuming and in some cases cause rework or significant changes. Ensuring alignment on the methodologies use to generate these estimate can in many cases save time, and cost.

What are the most common challenges and pitfalls in FEED equipment sizing and cost estimation?

Front end engineering design (FEED) is a crucial phase in any engineering project, where the technical, economic, and environmental aspects of the project are defined and optimized. One of the main tasks in FEED is to size and estimate the cost of the equipment required for the project, such as pumps, compressors, heat exchangers, vessels, and piping. However, this task is not without challenges and pitfalls, and can have significant impacts on the project performance, schedule, and budget. In this article, we will discuss some of the most common challenges and pitfalls in FEED equipment sizing and cost estimation, and how to avoid or mitigate them.

1 Data quality and availability

One of the biggest challenges in FEED equipment sizing and cost estimation is the quality and availability of the data needed for the calculations and analysis. Data can come from various sources, such as previous projects, vendor quotes, databases, literature, or assumptions. However, not all data are reliable, accurate, consistent, or relevant for the specific project. Poor data quality can lead to errors, uncertainties, overdesign, underdesign, or rework in the equipment sizing and cost estimation. Therefore, it is important to verify, validate, and update the data sources, and to document the data sources, assumptions, and methods used.

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Bhim S.

Project Controls Manager
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Equipment List is not up to date with Process Changes. Specs and data sheets are lagging behind design development, Process and project scope development takes time to incorporate in design deliverables and quotes/ bases are behind latest status. Best way to flow work sequence, do not put cart before the horse. Cost estimate information and input data is changing faster than design pace.

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2 Design criteria and standards

Another challenge in FEED equipment sizing and cost estimation is to select and apply the appropriate design criteria and standards for the project. Design criteria and standards are the rules and guidelines that define the performance, safety, quality, and compliance requirements for the equipment. They can vary depending on the project scope, location, client, industry, and regulations. However, sometimes the design criteria and standards can be conflicting, ambiguous, outdated, or incomplete, which can cause confusion, inconsistency, or non-compliance in the equipment sizing and cost estimation. Therefore, it is essential to identify, review, and align the design criteria and standards with the project objectives, stakeholders, and best practices.

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3 Equipment selection and optimization

A third challenge in FEED equipment sizing and cost estimation is to select and optimize the equipment that best suits the project needs and constraints. Equipment selection and optimization involve comparing and evaluating different types and configurations of equipment, based on their technical, economic, and environmental performance. However, this can be a complex and time-consuming process, as there are many factors and trade-offs to consider, such as capacity, efficiency, reliability, operability, maintainability, footprint, weight, noise, emissions, and lifecycle costs. Therefore, it is important to use appropriate tools, models, and methods to support the equipment selection and optimization process, and to involve the relevant stakeholders and experts.

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4 Equipment integration and interface

A fourth challenge in FEED equipment sizing and cost estimation is to integrate and interface the equipment with the rest of the project systems and components. Equipment integration and interface involve ensuring that the equipment functions properly and safely within the project context, and that it meets the interface requirements with other equipment, systems, or facilities. However, this can be a difficult and risky task, as there may be gaps, mismatches, or conflicts between the equipment specifications, design, and installation. These can result in technical issues, delays, or extra costs in the equipment sizing and cost estimation. Therefore, it is crucial to coordinate, communicate, and collaborate with the other project disciplines, teams, and parties, and to use consistent and compatible data formats, standards, and software.

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5 Equipment cost estimation

A fifth challenge in FEED equipment sizing and cost estimation is to estimate the equipment cost accurately and realistically. Equipment cost estimation involves estimating the capital and operating costs of the equipment, based on the equipment specifications, design, quantity, quality, delivery, installation, commissioning, operation, maintenance, and decommissioning. However, this can be a challenging and uncertain task, as there are many sources of variability, uncertainty, and risk that can affect the equipment cost estimation. These include market conditions, inflation, exchange rates, taxes, tariffs, contingencies, allowances, escalation, and contingencies. Therefore, it is vital to use reliable and updated cost data sources, methods, and models, and to apply appropriate uncertainty and risk analysis techniques.

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Dave Modeste

Sr. Process Engineer, LanzaJet
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Cost Estimation in the pre-FEED and FEED stages of a project can be a challenge because of methodology used (factored, vs parametric). Reconciling the results from these methods can be time consuming and in some cases cause rework or significant changes. Ensuring alignment on the methodologies use to generate these estimate can in many cases save time, and cost.

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6 Equipment change management

A final challenge in FEED equipment sizing and cost estimation is to manage the changes that may occur during or after the FEED phase. Changes can be triggered by various factors, such as client requests, design revisions, scope modifications, technical issues, regulatory changes, or unforeseen events. However, changes can have significant impacts on the equipment sizing and cost estimation, as well as on the project scope, schedule, budget, quality, and safety. Therefore, it is imperative to have a robust and effective change management process that can identify, evaluate, approve, implement, and document the changes in a timely and transparent manner.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Ron Malone

Data Resolve LLC
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One mistake often made is to go big thinking it will cover all scenarios. One big unique crusher rather than two smaller standard crushers. This also applies to oil and gas when looking at multi trains. Standard equipment easily obtained and manufactured. True for all items pumps, tanks, treatments etc.

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What are the most common challenges and pitfalls in FEED equipment sizing and cost estimation?

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1 Data quality and availability

2 Design criteria and standards

3 Equipment selection and optimization

4 Equipment integration and interface

5 Equipment cost estimation

6 Equipment change management

7 Here’s what else to consider

Front End Engineering Design (FEED)

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