2.3 Investment phase

Once the investment decision has been taken, engineering and procurement activities commence.

The basic engineering defines the design and the modes of operation and accounts for reliability and maintenance of the production facility. The documentation includes specifications, procedures and design calculations, drawings, data sheets and other information necessary to properly and sufficiently define all aspects of the facility.

Within the detail engineering all drawings and data sheets necessary to procure equipment and built and operate the plant are being developed.

The procurement phase focuses on the qualification and selection process of foreign and local vendors, inquiring services and deliveries, bid evaluations and negotiations and the final placement of purchase orders and development of QA/QC programs.

Furthermore the activities of tracking the supplier’s and manufacturer’s progress and the inspection and expediting, material shipping, material receiving and handling and material control prior to installation are required.

All earth works, works under ground and works with concrete are included in the civil works. Main parts of the civil works are the site preparation, soil strengthening and construction of buildings.

The preparation of the construction phase includes the development of a safety plan, QA/QC programs, environmental and health programs, construction philosophies including, where appropriate, the management of sub-contractors. Furthermore it is required to prepare the procedures for construction progress measurement and reporting, process for controlling field engineering changes and the mechanical completion process.

The construction itself follows the construction plan and is usually organized by disciplines like civil, structural, mechanical, heavy lifts, rotating equipment, piping, electrical and instrumentation, all supervised and controlled by a construction management and accompanied by the disciplines of HSE and QA/QC. Furthermore scheduling and control, contract management, document control and administration are of importance.

The commissioning of the industrial project prepares all process and utility systems for start –up and includes the production of first product. Commissioning includes the operator training.