How do you estimate and control the cost and schedule of FEED?

1 Scope definition

The first step for estimating and controlling the cost and schedule of FEED is to define the scope of the project clearly and comprehensively. The scope should include the project objectives, deliverables, requirements, constraints, assumptions, exclusions, and interfaces. The scope should also be aligned with the client's expectations and the project feasibility study. A well-defined scope will help you avoid scope creep, which can lead to cost overruns and schedule delays. You can use tools such as Work Breakdown Structure (WBS), Project Charter, and Scope Statement to document and communicate the scope of the project.

2 Cost estimation

The next step for estimating and controlling the cost and schedule of FEED is to estimate the cost of the project based on the scope definition. The cost estimation should include the direct and indirect costs of the project, such as labor, materials, equipment, subcontractors, engineering, management, contingency, and escalation. The cost estimation should also account for the uncertainties and risks associated with the project, such as changes in design, specifications, regulations, market conditions, and currency fluctuations. You can use tools such as Cost Breakdown Structure (CBS), Cost Estimating Software, and Cost Estimating Relationships (CERs) to estimate the cost of the project.

3 Schedule estimation

The third step for estimating and controlling the cost and schedule of FEED is to estimate the schedule of the project based on the scope and cost estimation. The schedule estimation should include the activities, durations, dependencies, resources, milestones, and critical path of the project. The schedule estimation should also account for the uncertainties and risks associated with the project, such as delays, rework, conflicts, weather, and resource availability. You can use tools such as Gantt Chart, Network Diagram, Schedule Software, and Schedule Risk Analysis (SRA) to estimate the schedule of the project.

4 Cost control

The fourth step for estimating and controlling the cost and schedule of FEED is to control the cost of the project during the execution of FEED. The cost control involves monitoring, measuring, analyzing, and reporting the actual cost performance of the project against the estimated cost baseline. The cost control also involves identifying, evaluating, and implementing corrective actions to prevent or minimize cost deviations. You can use tools such as Earned Value Management (EVM), Cost Variance Analysis, Cost Performance Index (CPI), and Cost Forecasting to control the cost of the project.

5 Schedule control

The fifth step for estimating and controlling the cost and schedule of FEED is to control the schedule of the project during the execution of FEED. The schedule control involves monitoring, measuring, analyzing, and reporting the actual schedule performance of the project against the estimated schedule baseline. The schedule control also involves identifying, evaluating, and implementing corrective actions to prevent or minimize schedule deviations. You can use tools such as Earned Schedule Management (ESM), Schedule Variance Analysis, Schedule Performance Index (SPI), and Schedule Forecasting to control the schedule of the project.

6 Change management

The sixth and final step for estimating and controlling the cost and schedule of FEED is to manage the changes that may occur during the execution of FEED. The changes may be initiated by the client, the contractor, or the external factors that affect the project. The changes may have an impact on the scope, cost, schedule, quality, or risk of the project. Therefore, it is essential to have a change management process that defines how to identify, evaluate, approve, implement, and communicate the changes. You can use tools such as Change Request Form, Change Log, Change Control Board (CCB), and Change Impact Analysis to manage the changes.

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?