Tasks of a Chemical or Process Engineer in Process Plant Engineering and Construction Change Order Claims

This blog post is the second 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 this second post details tasks to be performed in Change Order evaluation. The third and fourth posts will identify 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, and the fourth post will also include questions that chemical and process engineers can help answer about Change Order entitlement and schedule and cost impacts.

Change Order Evaluation Tasks
When a potential Change Order occurs that affects process plant design, a claims expert with a chemical or process engineering background should perform the following tasks:

1. Technical Review and Validation
Expert analysis often includes the following tasks:

– Review process engineering impacts:

• Changes to PFDs and P&IDs
• Changes to process flow rates, operating temperatures and pressures, product compositions, or chemical reactions
• Impact on system design, materials of construction, or equipment specifications

– Evaluate the technical impact of proposed changes on construction scope, materials, equipment, and methods.
– Evaluate if the change affects the 3-D model.
– Evaluate if the change affects layout of equipment, pipe routing in piperacks, and any other plot plan layouts.
– Evaluate if the change causes any construction rework.
– Confirm whether the Change Order aligns with original process design criteria, safety standards, and regulatory requirements, or if the change requires other changes to ensure that all design criteria, safety standards, and regulatory requirements are met.
– Compare FEED design documents to detailed design documents, i.e., review PFDs, P&IDs, and other engineering documents affected by the change to ensure that design changes are caused by the Change Order and are not the normal result of evolving the FEED design to a detailed design.
– Determine the effects of changes on construction sequencing or required special construction techniques.
– Determine if the change affects requirements for electric power, gases such as nitrogen and hydrogen, utility water, and cooling water.
– Determine if the change affects the design of the safety relief systems and flare.
– Identify additional testing, inspection, commissioning, or start-up requirements due to changes.
– If the project is a brownfield modification to an existing operating plant, identify any new tie-ins or shutdown impact.

2. Quantify Impact on Schedule and Cost
The expert may also establish the cause-effect relationship between design-related changes and resulting delays and cost overruns:

– Identify if changed chemical or material specifications require special procurement, changes to previously procured items, special fabrication, or changes to long-lead equipment items that may impact lead times and costs.
– Analyze if changes introduce process and operating complexity affecting construction sequencing, commissioning, performance testing, or start-up durations.
– Determine if the change requires additional safety measures, testing, or certification that influence cost or schedule.
– Quantify schedule impact of delays caused by:

• Prolonged Change Order approval process
• Additional work scope affecting engineering, procurement, and construction activity durations
• Extended lead times for new or specialized materials or equipment
• Engineering and/or construction rework

Quantify cost impact of:

• Increased engineering costs
• Increased material, equipment, or construction labor costs attributable to change
• Increased construction costs due to rework
• Costs related to additional safety, testing, or compliance measures
• Time-related costs due to delay
• Loss-of-productivity costs, including cumulative impact if there are many changes

3. Expert Opinion on Causation and Responsibility
The expert may need to render opinions on other related issues:

– Providing insight into whether the change was necessary due to owner-directed modifications, design errors, unforeseen process requirements, or regulatory changes
– Analysis of the cause of the Change Order (e.g., improper original design or design preference)
– Attribution of responsibility (e.g., owner-directed, design error, unforeseen conditions)
– Connection between technical changes and resulting project impacts
– Assessing whether the EPC firm properly managed the changes (e.g., had a proper change management procedure in place and managed the changes per that procedure)

4. Dispute Resolution Assistance
In addition to the above-listed scope, the expert may also perform other tasks involving design-related changes, such as:

– Serve as a technical expert in negotiations, mediations, or arbitration to clarify complex chemical or process engineering issues related to the claim.
– Translate technical jargon into clear terms understandable to legal, commercial, and construction teams.

Long International’s personnel 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 them 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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