【Haichuan EPC】What are the various stages in the design of large-scale petrochemical projects, and how should design costs be considered? ? ?
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What are the several stages in the design of large-scale petrochemical projects, and how should design costs be considered? ? ? The design of large-scale petrochemical projects is divided into three stages: overall design, basic design, and construction drawing design. According to the \"Quotas for Construction Costs in Petrochemical Engineering Projects\" (2025 edition), engineering design costs refer to the overall design fees, basic design fees, non-standard design fees, technical coordination fees, as well as fees for the preparation of as-built drawings. The engineering design fee is included in the other fixed asset costs under the total budget estimate. I. Several stages in the design of refining and chemical processing projects: 1. The overall design is a design document prepared at the required depth, in accordance with the guidelines for the overall design of large-scale petrochemical construction projects, after the approval of the feasibility study report. The Sinopec system requires that for large-scale engineering construction projects consisting of three or more production units, the overall design should be carried out based on the approved feasibility study report and its accompanying approval documents. 2. The basic design (preliminary design) documents shall be prepared in accordance with the contract, as well as the approved overall design or feasibility study report, process design package, and design basis materials. It should meet the requirements for owner review, preparation for the procurement of construction materials and site preparation, as well as for carrying out detailed engineering design. All technical principles and solutions must be determined during the preliminary design phase. The designers submit the design requirements (a summary table of quantities for equipment, materials, etc.) as internal input documents for the cost estimation team, which then uses these to prepare the preliminary cost estimate for the design. The basic design estimate is an important component of the basic design documents. 3. The construction drawing design (detailed design) documents are prepared based on the approved basic design documents and basic design data.
II. Engineering design fees 1. The costs referred to here include those incurred in preparing the overall design documents for engineering construction projects, basic design (preliminary design) documents, detailed design (construction drawing) documents, design documents for non-standard equipment, as well as as-built documentations. The original construction drawing budget preparation fee is included in the engineering cost consulting fee, and not in the engineering design fee. 2. For projects for which a contract has been signed, the amount is calculated based on the contract value; in the absence of a contract, it is calculated in accordance with the \"fee standards for engineering design\". (1) The engineering design fee is calculated based on the main project cost. The main project cost is a concept introduced in the 2025 budgeting methodology. (2) Formula for calculating engineering design costs: Engineering design costs = Basic design cost + Other design costs. Basic design cost = Base price for engineering design x Adjustment factor for project complexity x Additional adjustment factor. (3) The basic design cost refers to the expenses associated with preparing the preliminary design documents and detailed (construction) design documents in the course of engineering design; it includes costs related to providing design technical instructions, resolving design-related technical issues during construction, and participating in trial operations and final acceptance procedures. (4) The base price for engineering design fees is the cost to carry out the basic services; it is determined by referring to the \"Base Price Table for Engineering Design Fees\". When the project cost falls within two different value ranges, linear interpolation is used to determine the base price for engineering design fees.
5) Project complexity adjustment factor: The project complexity adjustment factor is a coefficient used to adjust for the differences in design complexity and workload among different construction projects within the same specialty. The complexity level of a project is divided into three categories: ordinary (Level I), relatively complex (Level II), and complex (Level III). The corresponding adjustment coefficients are: 0.85 for ordinary, 1.0 for relatively complex, and 1.15 for complex. When calculating the engineering design cost, the degree of complexity of the project is determined by referring to the \"Project Complexity Table\" (omitted). (6) Additional adjustment coefficient: The additional adjustment coefficient is a factor used to make supplementary adjustments for those aspects of the project’s complexity that cannot be addressed by the standard adjustment coefficient. When there are two or more additional adjustment coefficients, these coefficients cannot be multiplied together. Add up all the additional adjustment coefficients, subtract the number of such coefficients, and add 1; this value serves as the additional adjustment coefficient. For renovation, expansion, and technical upgrading projects, the additional adjustment coefficient is 1.1 to 1.4. (7) Other design fees: Other design fees refer to the charges incurred for providing relevant services based on the actual needs of the engineering design or the requirements of the client, including overall design fees, technical coordination fees, costs for preparing design documents for non-standard equipment, and costs for preparing as-built drawings. ①Before the basic design phase of the overall design, if it is necessary to prepare an overall design in accordance with the provisions of technical standards or the requirements of the client, the overall design cost shall be calculated as 5% of the basic design cost for that construction project. ②In engineering construction projects where the design work is carried out by two or more designers, the technical coordination fee is calculated at 5% of the project’s basic design cost. The costs include the overall design fee borne by the designer, who is responsible for the integrity, consistency, and rationality of the engineering design, as well as the technical management fees associated with assisting the project owner in carrying out reviews in accordance with the relevant requirements of the group company, conducting checks on the compliance of design documents, and examining the content and depth of those documents. ③Design fee for non-standard equipment: Design fee for non-standard equipment = Cost of non-standard equipment x Design rate for non-standard equipment. The billing amount for non-standard equipment is the estimated original cost of such equipment, excluding transportation costs and procurement and storage fees. The design rates for non-standard equipment are listed in the “Non-Standard Equipment Design Rate Table”. (Omitted) ④ Cost for preparing as-built drawings: The cost for preparing the as-built drawings is calculated at 8% of the basic design cost of the relevant construction project. (8) The cost proportions for various stages of engineering design are as follows: the basic design and detailed design each account for 50%, while the cost for the preliminary design is calculated by multiplying the engineering design cost by 0.8. The standard number of copies for design documents is 10 for the overall design and preliminary design, and 8 each for the detailed (construction) drawings, design of non-standard equipment, and as-built drawings. References: “Norms for Construction Costs in Petrochemical Engineering Projects” (2025)
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