Streamlining project phases in energy construction hinges on the strategic management of deliverables. Deliverables act as the backbone of every phase, from feasibility studies to detailed design and construction, ensuring clarity, alignment, and measurable progress. Each phase of a project brings unique challenges, requiring deliverables to adapt in scope, detail, and purpose to meet the evolving needs of the team and stakeholders.
Well-defined deliverables provide essential inputs for accurate estimating, risk management, and informed decision-making. They serve as a communication bridge between teams, disciplines, and stakeholders, promoting collaboration and reducing misunderstandings. By addressing potential risks early and aligning project objectives with stakeholder expectations, deliverables ensure that each phase transitions smoothly into the next, minimizing delays and cost overruns.
This guide delves into the critical role of deliverables across project phases and how they underpin project success. Whether working on feasibility studies or finalizing construction plans, leveraging tailored deliverables can simplify complex workflows, ensure compliance, and drive efficiency. By understanding and optimizing deliverables, project teams can elevate performance, exceed stakeholder expectations, and deliver exceptional results.
Companion Content: Use this guide in conjunction with Project Development Simplified: A Guide from FEL to FID for a more complete picture of the subject.
Key considerations when using this guide include:
- Tailoring to Project Scope: Understand the scale and scope of your project to determine which deliverables are essential and which may be optional.
- Evaluating Unique Requirements: Identify any distinctive aspects of the project, such as innovative technologies, stringent regulatory requirements, or specific client demands, and ensure these are integrated into the deliverable planning process.
- Engaging Stakeholders: Collaborate with all stakeholders to align on deliverable expectations, priorities, and timelines. This ensures that the deliverables meet the needs of everyone involved.
- Continuous Review and Adaptation: As the project progresses, revisit and adjust deliverable requirements to address evolving needs, risks, and opportunities.
- Using as a Reference: Treat this guide as a flexible tool rather than a prescriptive checklist. Combine it with professional judgment and expertise to create a customized approach.
By leveraging this guide as a foundation and adapting it to your project’s specific circumstances, you can set the stage for more effective deliverable management and successful project execution.
Understanding Project Deliverable Stages
Every project evolves through distinct phases, each requiring specific deliverables to advance. These stages, defined by the level of detail and purpose, guide stakeholders and project teams in aligning expectations and resources. Let’s examine the key deliverable stages:
Deliverable Stages
Deliverable Stage | Cross Reference | Maturity Level of Definition | End Use | Estimate Accuracy (Low) | Estimate Accuracy (High) | Typical Schedule |
Class 5 / FEL 0 | 1% to 5% | Study/Feasibility | -15% to -30% | +20% to +50% | 1-4 weeks | |
Class 4 / FEL 1, 2 | 1% to 15% | Budget Authorization | -10% to -20% | +10% to +30% | 4-16 weeks | |
Class 2, 3 / FEL 3 | 20% to 40% | EPCC Bid | -5% to -10% | +5% to +15% | *6-20 weeks | |
Detailed Design | Class 1 | 100% | Construction | Definitive Estimate | 20+ weeks |
Note: For larger and more complex projects, the timeframe for deliverable development and completion can extend significantly, often reaching upwards of a year. This extended schedule reflects the increased scope, complexity, and the need for thorough planning, detailed design, and multi-disciplinary coordination required for such projects.
Each phase builds on the previous one, gradually refining scope and deliverable maturity. This progression helps reduce risks and provides a clear framework for decision-making.
Depending on the maturity of the project, a project team may choose to skip certain phases, particularly in the early stages, if similar projects have been executed previously. This decision is often based on the availability of reliable data, proven methodologies, and a clear understanding of the project requirements derived from past experiences.
For instance, if a project closely resembles a previous one in scope and design, the team might bypass the feasibility or conceptual design phases, leveraging existing designs, standards, or deliverables. However, this approach requires careful consideration of the following factors:
- Accuracy of Historical Data: Ensure that the data and deliverables from prior projects are still valid and applicable to the current project context.
- Changes in Requirements: Assess whether new regulations, client specifications, or market conditions necessitate revisiting skipped phases.
- Risk Management: Recognize that skipping phases can introduce risks if unforeseen complexities arise later. A robust risk management strategy should be in place.
- Stakeholder Alignment: Confirm that all stakeholders agree with the decision to omit phases, and document the rationale to maintain transparency.
- Project Scale and Scope: Smaller, less complex projects are more likely to benefit from phase-skipping, while large-scale projects might require comprehensive reviews at every stage.
While this strategy can reduce time and cost, skipping phases should be approached cautiously to ensure that it does not compromise the quality, safety, or success of the project.
Project Attrition Through Development Phases
As projects progress through the development phases, the number of active projects typically decreases, symbolized by the reduced number of people shown at each stage. In the Feasibility Study phase, numerous projects are initiated to explore potential opportunities, with many ideas being evaluated for viability. As the projects move into the Budgetary Estimate phase, some are filtered out due to financial constraints or strategic misalignment, reducing the overall number of continuing projects. During the FEED (Front-End Engineering and Design) Phase, even more projects are eliminated as technical feasibility and alignment with stakeholder objectives are assessed. By the time projects reach the Detailed Design phase, only a select few that meet all the criteria proceed to execution. This "weeding out" process ensures that resources are focused on the most viable and impactful projects, aligning with organizational priorities and goals.
Purpose of Deliverables
Deliverables serve as the foundation for effective project execution, providing clarity, direction, and measurable outputs at each stage of the project lifecycle. Their purpose extends across multiple dimensions of project management and execution, ensuring alignment, efficiency, and risk mitigation. Here are the primary purposes of project deliverables:
- Establishing a Clear Scope
Deliverables define the scope of work for each phase of the project, creating a shared understanding among stakeholders. This clarity reduces misunderstandings, aligns expectations, and ensures that all parties are working toward the same objectives. - Facilitating Decision-Making
At critical milestones, deliverables provide the data and analysis needed for informed decision-making. Whether evaluating feasibility, approving budgets, or finalizing designs, deliverables offer the evidence required to proceed with confidence. - Enabling Coordination and Collaboration
Deliverables act as a communication tool between different teams, disciplines, and stakeholders. By outlining detailed requirements, plans, and designs, they ensure that everyone is aligned and working in harmony toward project goals. - Risk Identification and Management
Deliverables help identify potential risks early in the project lifecycle by highlighting gaps, inconsistencies, or challenges. This allows teams to proactively address issues and implement mitigation strategies, reducing the likelihood of delays or cost overruns. - Ensuring Compliance and Quality
In regulated industries or complex environments, deliverables document compliance with standards, codes, and client specifications. They also serve as a benchmark for quality assurance, ensuring that the project meets required performance and safety criteria. - Providing a Framework for Monitoring Progress
Deliverables offer measurable outputs that can be tracked against the project schedule and budget. This framework supports effective monitoring, helping project teams stay on track and identify deviations promptly. - Streamlining Construction and Execution
As the project transitions from design to construction, deliverables like detailed drawings, material specifications, and execution plans serve as actionable guides for contractors and field teams, reducing errors and inefficiencies.
In essence, deliverables are more than just outputs; they are critical tools that enable projects to move forward with clarity, precision, and confidence. By understanding their purpose and ensuring their quality, project teams can lay the groundwork for successful execution and delivery.
Detailed List of Deliverables by Phase
Discipline | Deliverable | Indicative Estimate (Class 5) | Budget Estimate (Class 4) | FEED | Detailed Design (Class 1) |
General | Basis of Design | X | X | X | X |
Scope of Work Document | Basic | Basic | X | X | |
Engineering Execution Plan | Std. | X | X | ||
Engineering Schedule | Level 1 | Level 1 | Level 2 | Level 3-5 | |
Special Studies (Noise, Emissions, etc.) | O | X | |||
Process Engineering | Process Flow Diagrams (PFDs) | BFD | BFD | X | X |
Heat & Material Balance | X | X | |||
Process Datasheets (Equipment, Valves) | Major | Major | X | X | |
Piping and Instrument Diagrams (P&IDs) | Typicals | Typicals /Redlines | X | X | |
Mechanical | Equipment Specifications | Major | Major | X | |
Equipment RFQ and Vendor Quotes | Budgetary | Major | X | X | |
Insulation and Coating Specifications | Typical | Typical | Typical | X | |
Piping | Piping Specifications | Typical | Typical | Typical | X |
Plot Plan | X | X | X | X | |
Piping Isometrics | Prelim | X | |||
Instrumentation & I&C | Instrument Index | Count | Count | X | X |
Instrument Datasheets (Valves, Sensors) | Major | Major | Major | X | |
Control Narrative | O | X | |||
Cause & Effect Diagram | X | ||||
Electrical | One-Line Diagram | Prelim | Prelim | X | X |
Area Classification | X | X | |||
Electrical Load List | Prelim | Prelim | X | X | |
Grounding Plan and Details | Qty | Qty | X | X | |
Civil | Site Plan | X | X | ||
Grading Plan and Details | Qty | Qty | X | X | |
Drainage Plan | X | X | |||
Fencing Plan and Details | Qty | Qty | X | X | |
Concrete | Pile Design | Qty | Qty | X | X |
Foundation Location Plans | X | X | |||
Structural | Structural Steel (Major) | Qty | Qty | X | X |
Structural Steel (Miscellaneous) | Qty | Qty | X | X | |
Architectural | Building Size and Construction Type | Qty | Qty | X | X |
HVAC Requirements | X |
Notes
- X: Required deliverable which will set the basis for the quantity and engineered equipment development
- Qty: This refers to developing a basis for the quantity as well as calculating the total quantities based on estimating breakdown structures (EBS), which are an integral part of the deliverables
- O: If Required by Contract
- Prelim: Preliminary Development
- Typicals: Utilizing previous project information of like scope and scale to define scope
This structured approach ensures teams focus on what’s essential at each phase, promoting efficiency and resource alignment.
How Deliverables Are Used in Estimating
Deliverables play a critical role in the project estimating process by providing the necessary inputs, context, and benchmarks required to generate accurate and reliable cost and schedule estimates. Their level of detail evolves as the project progresses, enabling estimates to become more refined and precise. Below are the key ways deliverables are used in estimating:
Establishing Baseline Data
Early-phase deliverables, such as conceptual designs, process flow diagrams, and scope of work documents, provide baseline data for developing initial estimates. These high-level deliverables enable the creation of rough order of magnitude (ROM) or indicative estimates, which help gauge project feasibility and set preliminary budgets.
Supporting Quantity Takeoffs
Detailed deliverables, such as Piping and Instrumentation Diagrams (P&IDs), equipment datasheets, and civil/structural drawings, are essential for performing quantity takeoffs. These quantities form the foundation for calculating material, labor, and equipment costs. For example:
- Piping isometrics provide lengths, diameters, and materials for estimating piping costs.
- Electrical one-line diagrams help determine the number of circuits, panels, and load requirements.
- Foundation plans give details on concrete and rebar quantities.
Defining Scope and Complexity
Deliverables outline the scope and complexity of the project, which directly impact cost estimates. A clearly defined scope of work helps avoid omissions or overestimations. For instance, a detailed process flow diagram (PFD) or basis of design (BOD) clarifies the project’s technological requirements, helping estimators account for specific equipment, materials, or systems.
Providing Vendor and Material Specifications
Deliverables like equipment specifications and RFQ packages (Request for Quote) allow estimators to obtain vendor quotes for major equipment and materials. This ensures that the cost estimates reflect market conditions and supplier pricing. Key deliverables include:
- Equipment datasheets
- Vendor responses to RFQs
- Material specifications (e.g., steel grades, insulation types)
Benchmarking and Historical Comparisons
For projects with similar deliverables to past projects, estimators can use historical data to benchmark costs and validate estimates. Deliverables like plot plans, piping layouts, or wiring requirements allow direct comparisons with previous projects of similar scale and complexity.
Supporting Risk Analysis in Estimates
Deliverables help identify potential risks or uncertainties that could affect the estimate. For example:
- Incomplete designs may lead to contingency allowances.
- Preliminary deliverables might indicate scope gaps or unknowns.
By identifying these factors, estimators can include appropriate contingencies or risk adjustments.
Aligning Estimates with Project Phases
Deliverables correlate with different estimating classes (Class 5 to Class 1). As deliverables mature, they allow for progressively more detailed and accurate estimates:
- Class 5 Estimates rely on high-level deliverables like block flow diagrams or basic scope outlines.
- Class 3 Estimates leverage detailed deliverables from FEED, such as P&IDs, equipment lists, and plot plans.
- Class 1 Estimates use comprehensive deliverables, including fully detailed designs, to create definitive estimates.
Deliverables serve as the building blocks of project estimates by providing the essential data, scope definition, and documentation needed to quantify costs accurately. As the deliverables become more detailed and complete, estimates can be refined to provide greater precision, reducing the likelihood of budget overruns and supporting successful project execution.
Companion Content
A sample project deliverable breakdown for pre-detailed design project execution is shown below. Providing breakdowns like this can help communicate expectations for deliverables at different stages of project execution to ensure alignment.
Key Insights for Optimizing Deliverables
- Start with Clarity: Define deliverable requirements upfront. Ambiguities in scope can lead to delays and budget overruns.
- Leverage Past Projects: Utilize templates, standards, and lessons learned to streamline efforts and maintain quality.
- Align Stakeholders: Regular communication ensures that the deliverables meet the needs of all parties.
- Focus on Risk Management: Tailor deliverables to address high-risk areas with more detail.
- Invest in Technology: Tools like SmartPlant, P6, and BIM can enhance deliverable creation and management.
Conclusion
Engineering deliverables are the backbone of successful project execution, acting as the bridge between planning, design, and construction. They provide clarity, structure, and actionable guidance at every phase, enabling teams to align efforts, manage risks, and meet project objectives. By tailoring deliverables to the specific scope, scale, and complexities of each project, organizations can streamline processes, enhance decision-making, and ensure compliance with regulatory and client requirements.
Optimizing deliverable development requires a combination of thoughtful planning, stakeholder collaboration, and leveraging historical data and modern technologies. Tools such as Building Information Modeling (BIM) and project management software streamline deliverable creation, enhance accuracy, and foster real-time collaboration across disciplines. At the same time, continuous review and adaptation of deliverables ensure they remain relevant and responsive to evolving project conditions.
The importance of deliverables extends beyond individual project phases; they serve as a foundation for long-term success by capturing institutional knowledge, refining estimating practices, and enabling continuous improvement. While this guide provides a robust framework for managing and optimizing deliverables, the key to success lies in adapting it to the unique needs of each project. By investing in clear, precise, and adaptable deliverables, project teams can improve predictability, reduce risks, and deliver exceptional outcomes with confidence.
Engineering deliverables are more than just outputs—they are tools of alignment, efficiency, and innovation. Their thoughtful development and management are essential for navigating the complexities of industrial projects and ensuring success in an increasingly demanding and dynamic industry.
Disclaimer
The information provided in this post is for reference purposes only and is intended to serve as a guide to highlight key topics, considerations, and best practices. It does not constitute professional advice or a substitute for consulting regarding specific projects or circumstances. Readers are encouraged to evaluate their unique project needs and seek tailored advice where necessary. Please Contact Us to discuss your particular project.
