Most Oil & Gas projects pass through the Front-End Engineering and Design (FEED) phase before going to detailed engineering. FEED phase scope generally covers the basic design and engineering of the facilities, development of the layout,vendor inputs for major packages, HSE impact assessment and refines the cost estimates of the conceptual design. The FEED cost estimates are used to obtain required management approvals and also serve as basis to review the proposal of the Engineering, Procurement & Construction (EPC) contractors. The FEED dossier, which is a compilation of basic design and engineering documents, is provided to the EPC contractor to serve as input data for further detailing during the EPC phase and forms a part of contract documentation.
With the emergence of the FEED endorsement concept, a single point responsibility is passed on to the EPC Contractor to be fully responsible for the delivery of the project, meeting all requirements and without any involvement of the FEED contractor. EPC contractors are required to endorse the FEED at the time of bidding and take full responsibility of the project including process guarantees, in addition to the normal warranties / guarantees associated with usual EPC project scope. This concept is quite advantageous in terms of Owner's project execution strategy.
The FEED Endorsement requires understanding of the complete design concept and complete verification of design without any face to face interaction with Owner or the FEED contractor. It is worth noting that FEED endorsement requires significant efforts for design verification and includes redoing many basic design activities within a short period.