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Turnkey Packaging Solutions

Levels of Front-End Engineering

 

Rough Order of Magnitude
Quotation
(+/- 50%)

Refined Quotation
(+15%/-5%)

Fixed Bid Quotation
(+/-0%)

Advantages

  • Least cost method for approximate project value
  • Project scope 90% defined.

  • Included contingency minimized as most "Unknowns" have been turned into "Knowns."

  • Approximately 10% of design engineering completed.

  • Front End Engineering value credited against Fixed Bid Quotation value.
  • Project Timeline defined and Long Lead items identified.
  • Project scope, timeline and approach totally defined and solidified.


  • No future financial risk to client if project scope does not change.


  • No surprises later because proper due diligence was funded to arrive at the project value.


  • Included contingency minimized as "Unknowns" have been turned into "Knowns".


  • Approximately 15% of design engineering completed. Front End Engineering value issued as credit against Fixed Bid Quotation value.
  • Disadvantages

  • Difficult to fund due to lack of accurate cost


  • Large $$ variability from vendors - Who do you believe?
  • Typical Uses

  • Placement of project in next year's capital budget
  • Best value approach to arrive at an accurate project estimate
  • Appropriation of capital funds.
  • Engineering

  • No significant engineering done
  • Identify Line Rate, Identify Major pieces of Equipment.

  • Define Line Control/Automation Strategy.

  • Identify major civil/facility upgrades/changes required
  • Major and Minor pieces of equipment identified.

  • Control/Automation Strategy Identified, Identify major civil/facility upgrades/changes required.

  • Power and Air Consumption requirements identified.


  • Performance criteria identified.

  • Peer design review conducted.
  • Programming & Integration

  • Compare to projects of similar magnitude
  • Programming hours estimated based on Line Control Strategy
  • Programming hours estimated based on Line Control Strategy
  • Equipment Pricing

  • Compare to projects of similar magnitude
  • Use recent pricing for standard packaging equipment (Conveyors, Fillers, Packers, Tapers, etc.) and secure current pricing for complex and specialty equipment
  • Accurate current pricing for all major and minor equipment
  • Project Timing

  • Compare to projects of similar magnitude
  • Create project timeline based on major pieces of equipment delivery estimates
  • Identify all equipment delivery dates.

  • Project Timeline to include complete project execution dates.
  • Line Layout

  • No drawings developed.
  • Preliminary layout drawing developed.
  • Preliminary layout and equipment drawings developed.
  • EPIC Fabrication

  • Compare to projects of similar magnitude.
  • Fabrication hours calculated based upon preliminary layout
  • Mechanical and electrical labor hours calculated based upon preliminary layout.

  • Peer estimate review to confirm accuracy and thoroughness.
  • Acceptance Testing

  • No FAT plan developed or accounted for.
  • Use preliminary layout and Controls Strategy to estimate FAT effort required.
  • Use preliminary layout and Controls Strategy to estimate FAT effort required.
  • Field Installation

  • Compare to projects of similar magnitude.
  • Develop internal estimates for mechanical and electrical installation scope
  • Secure firm bids from subcontractors for civil, utilities, mechanical and electrical installation scope.
  • Start-up & Commissioning

  • No Check-out or Commissioning plan included.
  • Use preliminary layout and Controls Strategy to estimate Field Checkout.
  • Use preliminary layout and Controls Strategy to estimate Field Checkout.
  • Develop basic Commissioning Plan with customer.
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