Definition:
A detailed project planning phase focusing on technical requirements and cost estimations to provide a foundation for the Final Investment Decision and subsequent project execution.
Key Components:
- Technical Specifications: Detailed design parameters
- Cost Estimation: Refined budget forecasts
- Project Scheduling: Timelines for execution phases
Use Cases/Industries:
- Chemical Processing Plants: Designing new production facilities
- Mining Operations: Planning extraction and processing infrastructure
Advantages:
- Enhanced Accuracy: Improves project cost and time estimates
- Risk Reduction: Addresses potential issues before execution
Challenges:
- Resource Demands: Requires skilled personnel and time
- Scope Creep: Potential for project parameters to expand
Related Terms:
Front-End Loading (FEL), Detailed Engineering
Example:
During the FEED phase, a mining company develops detailed engineering designs and cost estimates for a new ore processing plant, forming the basis for the project’s FID.
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Synonyms:
Basic Engineering, Preliminary Engineering
