Chemical and Process Engineer Assistance in Process Plant Engineering and Construction Change Order Claims

This blog post is the last in a four-part series on the role of chemical and process engineers in evaluating process plant engineering and construction Change Order claims.

The first post discusses the typical chemical and process engineering scope of work and when to engage a chemical or process engineer in a Change Order claim, and the second post details tasks to be performed in Change Order evaluation. The third post identifies six examples of Change Order claims in which a chemical or process engineer is uniquely qualified to evaluate the technical, schedule, and cost impact of changes. This fourth post includes two more examples and includes questions that chemical and process engineers can help answer about Change Order entitlement and schedule and cost impacts.

Example 7: Safety, Environmental, and Regulatory Changes
For Example 7, chemical or process engineers along with other engineering disciplines would assess the effect of these changes, and chemical or process engineers would verify that process changes resulted in impacts to the work scope.

• Changes caused by Hazards and Operability Analysis and Layers of Protection Analysis (HAZOP/LOPA) outcomes. Examples include requirements for extra relief valves, flare capacity upgrades, or blast-resistant buildings.
• Changes caused by environmental compliance, such as changing scrubbers, flare design, or wastewater treatment to meet stricter emissions or water standards.
• Fire protection revisions, such as adding new or larger firewater pumps, deluge systems, or spacing changes for safety compliance.
• Change in fire protection code requiring intumescent fireproofing of structural steel that is already partially erected.

Example 8: Knock-on Effects

• Procurement delays from long-lead equipment (compressors, reactors) if specifications are revised.
• Rework of 3D models (SmartPlant, PDMS, etc.), which cascades into piping changes to isometric drawings, stress analysis, and material take-offs.
• Out-of-sequence construction that results from redesigns that force labor crews to pause, wait for revised drawings, or rework already-installed items.

Summary
In short, any design change that alters process conditions, equipment specs, layout, or compliance requirements can cause major schedule slips and cost growth because such changes can cascade into detailed engineering, procurement, fabrication, and construction work.

However, not all design changes are changes in scope. For example, the addition of double block valves and a bleed valve around process control valves to the FEED P&IDs during detailed design is not usually considered a compensable design change. It is a standard requirement of the EPC contractor’s scope of work to enable the bypass of the control valve to allow maintenance of the valve without shutting down the affected process.

An experienced chemical or process engineer will recognize the evolution of a process plant design from the FEED stage to the detailed EPC phase. That evolution is part of the EPC contractor’s scope of work. However, disputes can occur over whether such changes are indeed part of the EPC contractor’s normal scope of work.

For each of these types of changes, Long International’s chemical and process engineers can help answer questions including the following:

Change Order Entitlement

1. Is the design change an owner-directed scope change that may entitle the contractor to a time extension and additional compensation?
2. Is the design change a contractor-requested scope change that may entitle the contractor to a time extension and additional compensation?
3. Is the design change part of design development to advance the FEED design to detailed design, which may not entitle the contractor to a time extension and additional compensation?

Schedule Impact

1. What was the status of procurement and construction when the owner requested the design change?
2. What schedule activities were driving the critical path to project completion at the time of the design change?
3. Did the design change affect critical path activities at the time that the design change occurred?
4. Were other procurement and construction problems occurring that would also delay project completion?
5. Should a schedule impact analysis be performed to determine the amount of delay caused by the design change, considering other delays that would also affect the time for project completion?

Cost Impact

1. What is the estimated direct cost of additional engineering, procurement of new equipment, piping, and instrumentation, and construction labor associated with the design change?
2. What are the time-related costs associated with the critical path delay of the design change?
3. Is the contractor alleging loss-of-productivity costs as a result of the design change and other changes? How are these costs being calculated?

Long International’s personnel currently include six chemical/process engineers with expert experience analyzing changes to the design and construction of: oil refineries; chemical, petrochemical, gas processing, or Liquefied Natural Gas (LNG) plants; topsides of offshore oil and gas plants; power plants; and other process plant projects. Learn more about these engineers on our expert profile pages: Richard J. Long, P.E., P.Eng., Eric J. Klein, Ph.D., P.E., PMP, CCP, Sherard A. McIntosh, Philip R. Moncrief, P.E., P.Eng., William L. Reeves, P.E., and James E. Bortz, P.E.

Richard J. Long has a B.S. in Chemical Engineering and an M.S. in Chemical and Petroleum Refining Engineering.

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