VALVE MAGAZINE Spring 2024

EPC EFFICIENCIES

costs associated with their presence on the project. This can be about 70% of the total project costs, and often include daily per diems that are payable even in work stoppages. Task-specific rental equipment is a direct cost as well. If it is utilized for multiple tasks and is kept for the whole project, it may be considered an indirect cost. Speed-to-Market Costs — Speed to market is key in many industries. Once a client determines that a project is financially viable, it is almost a race to proper completion. This may include complete engineering, procurement, permitting and construction. The time value of money must be considered on every project. Markets change often and it is important for clients to be responsive to market forces ervation, documentation and more are provided in project specifications. • The MTO, plus relevant valve specifications and datasheets, are sent to potential valve suppliers or manufacturers for purposes of soliciting technical and commercial quotations. • Valve and actuator suppliers or manufacturers deliver their products with all relevant valve documents such as drawings, procedures, reports and more. Dimensional drawings are modeled in a software program such as a plant design management system (PDMS), similar to a 3D AutoCAD. This design software is used to make 3D models for piping and valves, equipment and structures. If different vendors are selected for supplying specific valves of the same size and pressure class, dealing with two different sets of drawings and other documents is challenging. • Multiple valve manufacturers or suppliers as well as subsuppliers for forging or casting, machining, coating and more from different locations adds complexity to the project. Another consideration is actuator manu facturers. The actuator suppliers will make and supply the actuators to the valve manufacturers to complete assembly and test. Lack of communication and coor dination between the valves and related actuation suppliers can delay the valve procurement process. ACTUATOR SUPPLIER SELECTION STRATEGY Generally, there are two ways of selecting actuator manu facturers. The first is to select directly from the end-user- approved vendor list. The other approach is to authorize valve suppliers to select suitable actuator suppliers from the approved vendor list of the client. While this approach can facilitate the communication and coordination between the valve and actuator manufacturers, it may lead to selecting more and more varied actuator suppliers for the project. ORDERING SPECIAL VALVES Special valves may include large-size and high-pressure class valves with special designs, based on the application. These

Managing Valves in an EPC Project cost of regrouping, rerigging and starting another task could decrease productivity by as much as 30-40%. Contractor Extended Indirect Costs — Indirect costs are the costs associated with a project that are usually a function of time and are somewhat fixed costs. Labor costs would include a project manager, site manager, safety, QC, admin and any other field office staff or direct home office staff. Rentals could include a crane, rigging and other required specialty equipment. Other indirect costs might include trailers, copiers and temporary utilities. If the project is extended, these costs can be substantial. Contractor Extended Direct Costs — I ncluded in the example above, this is primarily the site craftsmen and the Piping systems in industrial plants such as oil and gas facilities, chemical and petrochemical plants, food and beverage manufacturers, and mining or water/wastewater plants all require detailed, application-specific information and engineering drawings before valves can be specified and ordered. This can take 20−25% of total engineering man hours and construction work in projects. Piping systems connect equipment and components all over plants. Below are some of the considerations related to managing valves in an EPC project. • The type of valves — as well as size, pressure class, material, end connections and other parameters — are selected through cooperation between process and valve engineers who work with piping and instrument diagrams (P&IDs). • During the detail engineering phases, P&IDs are more mature and developed. At this phase, the list of valves named as first material take-off (MTO) are created and should contain size, pressure class, material, end connections and other special valve requirements such as bore types (full or reduced) for ball valves or any required coatings. General valve requirements such as factory acceptance tests (FAT), packing, pres

Piping system construction in progress. Source: IAC International

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VALVE MAGAZINE

SPRING 2024