Commissioning of Industrial Projects - Cost Estimating Considerations

Commissioning of Industrial Projects

Cost Estimating Considerations

The Purpose of this Document

The Purpose of this DocumentIs to assist the cost estimator in understanding of:

The Purpose of this DocumentIs to assist the cost estimator in understanding of:• Commissioning activities

The Purpose of this DocumentIs to assist the cost estimator in understanding of:• Commissioning activities• Costs associated with commissioning activities

The Purpose of this DocumentIs to assist the cost estimator in understanding of:• Commissioning activities• Costs associated with commissioning activities• Costs allocation of commissioning activities


What this document it is not:• A guide to commissioning and start-up cost estimating.


What this document it is not:• A guide to commissioning and start-up cost estimating.Commissioning and start-up cost estimate is developed by firms which specialize in the field of commissioning.

Commissioning - Definition

Commissioning can be defined as:

Commissioning - Definition

Commissioning can be defined as:

Use of a systematic, pre-defined methodology, to convert a newly built industrial facility into a fully integrated and operational unit, meeting the design

parameters.

Commissioning - Stages


1. Pre-commissioning


1. Pre-commissioning• Consists of activities performed during the construction phase: installation and testing

of equipment.


1. Pre-commissioning• Consists of activities performed during the construction phase: installation and testing

of equipment. • This stage is also referred to as “mechanical completion”.


2. Commissioning


2. Commissioning

• During this phase, the various systems of the new facility are put into initial operation.


2. Commissioning


• Is performed in two steps:


2. Commissioning


• Is performed in two steps:• Dry commissioning. This step includes tests and procedures performed before any process or safe

chemicals are introduced into the system. In this category we can include control system checks, major motors initial running.


2. Commissioning


• Is performed in two steps:• Dry commissioning. This step includes tests and procedures performed before any process or safe

chemicals are introduced into the system. In this category we can include control system checks, major motors initial running.

• Wet commissioning. During this step, safe chemicals are introduced into the system and the whole process in put through operating scenarios, to assess and achieve the normal operation of the facility, as per design expectations.


3. Start-up


3. Start-upa. The facility is brought into normal operation.

Commissioning – Step-by-Step

1. Appointment of commissioning team


1. Appointment of commissioning team• Define the scope of commissioning


1. Appointment of commissioning team• Define the scope of commissioning• Appoint the commissioning manager


1. Appointment of commissioning team• Define the scope of commissioning• Appoint the commissioning manager• Develop commissioning plan


1. Appointment of commissioning team• Define the scope of commissioning• Appoint the commissioning manager• Develop commissioning plan• Appoint commissioning team


2. Handover from construction team to commissioning team:


2. Handover from construction team to commissioning team:• Check-out all installations, punch lists, labeling, packaging, factory acceptance testing,

etc.



etc.• Actual handout from construction team to commissioning team.



etc.• Actual handout from construction team to commissioning team.• Implement system to manage scope change during commissioning.


3. Commissioning


3. Commissioning• Equipment testing


3. Commissioning• Equipment testing• Systems testing


3. Commissioning• Equipment testing• Systems testing• Dry commissioning


3. Commissioning• Equipment testing• Systems testing• Dry commissioning• Wet commissioning


3. Commissioning• Equipment testing• Systems testing• Dry commissioning• Wet commissioning• Training and safety


3. Commissioning• Equipment testing• Systems testing• Dry commissioning• Wet commissioning• Training and safety• Adjust equipment and systems


4. Start-up


4. Start-up• Introduce process chemicals


4. Start-up• Introduce process chemicals• Commissioning on process chemicals


4. Start-up• Introduce process chemicals• Commissioning on process chemicals• Adjust equipment and systems


4. Start-up• Introduce process chemicals• Commissioning on process chemicals• Adjust equipment and systems• Develop operations and maintenance personal training program


5. Final verification against design parameters of:


5. Final verification against design parameters of:• Equipment


5. Final verification against design parameters of:• Equipment• Process


5. Final verification against design parameters of:• Equipment• Process• Product


6. Handover to Operations and Maintenance Team:


6. Handover to Operations and Maintenance Team:• Commissioning documentation,


6. Handover to Operations and Maintenance Team:• Commissioning documentation,• Training and safety, operating procedures materials,


6. Handover to Operations and Maintenance Team:• Commissioning documentation,• Training and safety, operating procedures materials,• Train operations and maintenance team to the final operating parameters of the new

facility.

Commissioning – Cost Estimate Considerations

1. Pre-commissioning


1. Pre-commissioning• All associated costs are included in the equipment installation, therefore are part of the

construction costs,


1. Pre-commissioning• All associated costs are included in the equipment installation, therefore are part of the

construction costs,• Additional costs include the construction team to commissioning team handover.


2. Commissioning costs are comprised of:


2. Commissioning costs are comprised of:• Commissioning team costs,


2. Commissioning costs are comprised of:• Commissioning team costs,• Contractor and vendor/manufacturer costs associated with its presence onsite to

perform any adjustments or interventions as required by the commissioning team,


2. Commissioning costs are comprised of:• Commissioning team costs,• Contractor and vendor/manufacturer costs associated with its presence onsite to

perform any adjustments or interventions as required by the commissioning team,• Operations and Maintenance personnel training costs.

Commissioning – Cost Estimate Final Considerations


To properly determine the cost of commissioning and start-up, we require an actual commissioning plan, specifically prepared for the project.



Typically, the Project Owner will appoint the commissioning manager. Therefore, the commissioning and start-up costs will be provided by the commissioning manager.




In the early stages of the project design, we can use factors to estimate commissioning and start-up costs.




In the early stages of the project design, we can use factors to estimate commissioning and start-up costs.

For most industrial facilities, the commissioning and start-up costs are approx. 3.5% of the total capital cost of the project. Of course, this factor will vary depending on the complexity of the new facility equipment, systems and processes.

Your turn now!

I hope you enjoyed flipping through these slides and thank you for your curiosity.

What is your experience with commissioning and start-up cost estimating? Please leave your comments below.

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Commissioning of Industrial Projects - Cost Estimating Considerations