design practices in petrochemical firms in saudi：在沙特的石油化工企业设计实践

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DESIGNPRACTICESINPETROCHEMICALFIRMSINSAUDIARABIA,SABICASSTUDYCASE

BY

WAHABSALMANALJAROUDI

AThesisPresentedtothe

DEANSHIPOFGRADUATESTUDIES

InPartialFulfillmentofthe

RequirementsfortheDegreeof

MASTEROFENGINEERING

In

ConstructionEngineeringandManagement

KINGFAHDUNIVERSITY

OFPETROLEUMANDMINERALS

DHAHRAN,SAUDIARABIA

June2007

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DEDICATION

Idedicatethisreporttomyparent,wife,AliandLittleAmna

ACKNOWLEDGEMENT

AcknowledgementisduetoKingFahdUniversityofPetroleumandMineralsforsupportingthisreport.

IwishtoexpressmyappreciationtoDr.SolimanAlMohawiswhoservedasmyadvisorforallthesupportandguidance.IalsowishtothankDr.SadiAssafforallsupportandhelp.

ABSTRACT

FullNameofStudent

:

WahabSalmanAlJaroudi

TITLEOFSTUDY

:

DesignPracticesinPetrochemicalFirmsinSaudiArabia,SABICasStudyCase

MAJORFIELD

:

ConstructionEngineering&Management

DATEOFDEGREE

:

JUNE2007

ThisreportidentifiesandassessesthedesignpracticesatSaudiBasicIndustriesCorporation(SABIC)presentedbyDesignManagementDepartment(DMD).ItassessesthedegreeoffulfillingtheDMDdesignpracticesitsclients'(SABICAffiliates)requirementsfortheirprojects.ThedataofdesignpracticeswasobtainedfromliteraturesandinterviewswithDMDkeypersonnelsuchasseniordesignengineersandspecialistdesignengineers.Thedataofaffiliate'ssatisfactionisobtainedfrominterviewswithselectedprojectengineersfromfourdifferentSABICaffiliates.Inconclusion,affiliatesaresatisfiedmoderatelywithdesignpracticesquality.ThisreportendsupwithsomerecommendationstoimprovethecurrentdesignpracticesatDMDandtofulfillingtheaffiliates'requirements.Therecommendationsare:(1)introduceQualityControlSystemeditedbythirdparty,(2)introduceacontractibilityplanand(3)preparesafeasibilitystudyforproposedprojects.

MASTEROFENGINEERINGDEGREE

KINGFAHDUNIVERSITYOFPETROLEUMANDMINERALS

Dhahran,SaudiArabia

JUNE,2007

LISTOFTABLES

TOC\h\z\c"Table"

Table1.RankingofQualityManagementActivities

24

Table2.QualityMangaementAreaConclusions

26

Table3.PerformanceAttrbutesforEngineeringDesignProcess

32

Table4.PerformanceChartforDesignProcess

34

Table5.DesignProcessWeightedEvaluationForm

36

Table6.A/ESelectionCriteriaasRankedbyPublicSectorandConsultants.

41

Table7,SABIC'sStrategicBusinessUnitsandAffiliates

45

Table8.ExecutionStrategies

67

Table9.DesignManagementDeprtmentSize

80

Table10.AffiliatesDestrbution

81

Table11.DMDEmployeesExperiance

81

Table12.ProjectsCompletedbyDMDon2006

83

Table13.DMDProjectPattrenson2006

84

Table14.DMDEvaluationResult

85

ListofFigures

TOC\h\z\c"Figure"

Figure1.SABICOrganizationChart

47

TABLEOFCONTENTS

DEDICATION……………..i

ACKNOWLEDGEMENT………………...ii

ABSTRACT………………iii

LISTOFTABLES………….……………iv

LISTOFFIGURES………………………v

1 INTRODUCTION

1

1.1 Researchobjectives

3

1.2 Scopeoftheresearch

3

1.3 Significanceoftheresearch

4

2 LITERATUREREVIEW

5

2.1 General

5

2.2 CharacteristicsofPetrochemicalProject

5

2.3 Engineeringservices

8

2.4 Designandplanningservices

8

2.4.1 ScopeofWork

9

2.4.2 DesignDrawings

11

2.4.3 Specifications

13

2.4.4 CostEstimate

17

2.4.5 ProcessHazardAnalysis(PHA)

20

2.5 QualityControlPractices

22

2.5.1 TotalQualityManagement

23

2.5.2 Constructability

28

2.6 DesignProcessEvaluationandPerformanceMeasurement.

31

2.7 Engineeringservicescost

37

2.8 LocalEngineeringFirmsRoleinPetrochemicalIndustry

38

2.9 Previousstudies

39

3 METHODOLOGY

42

3.1 Requireddata

42

3.2 Datacollection

42

3.3 Dataanalysis

43

4 SABICORGANIZATIONANDMANAGEMENT

44

4.1 General

44

4.2 SABICOrganization

44

4.3 SharedServicesOrganization(SSO)

48

4.4 EngineeringandProjectManagement

49

4.4.1 EngineeringDepartment

49

4.4.2 ProjectDepartment

50

4.4.3 SiteProjectDepartment

50

4.4.4 DesignManagementDepartment

50

4.5 AComparisonofOldandNewOrganization

52

4.5.1 OldOrganization

52

4.5.2 TheNewOrganization

55

5 DESIGNPRACTICESATSABIC

57

5.1 FrontEndEngineeringPackage(FEEP)

57

5.1.1 General

57

5.1.2 Workflow

58

5.1.3 ScopeofWork

60

5.1.4 CodesandStandards

61

5.1.5 SafetyRequirement

63

5.1.6 Materials

64

5.1.7 ExecutionStrategy

66

5.1.8 CostEstimate

68

5.1.9 PlanandSchedule

69

5.1.10 Drawings

70

5.1.11 Responsibilities

71

5.2 DetailDesignPackage(DEP)

74

5.2.1 General

74

5.2.2 WorkFlow

75

5.2.3 DocumentIndex

75

5.2.4 Scopeofwork

76

5.2.5 DetailDrawings

76

5.2.6 Technicalrequisition

77

5.2.7 Materialtakesoff

77

6 RESULTANDDISCUSSION

78

6.1 DesignManagementDepartment(DMD)Capabilities

78

6.1.1 DesignManagementDepartmentSize

78

6.1.2 DMDExperience

81

6.1.3 TypeofProjectsUndertakenbyDMD

82

6.1.4 DMDDesignQuality

84

6.2 Affiliatessatisfaction

85

6.3 Recommendation

86

7 REFERENCES

88

VITA……………………..92

INTRODUCTION

Petrochemicalsareveryimportantinourdailylife.Thescopeofproductsmanufacturedfrompetrochemicalsisbroadrangefrom,insulators,cablewrap,fertilizers,plastic,andrubbertoeverydayitemslikehomefurnishing,clothsandtoys.ThedemandofpetrochemicalisincreasinginthelastthreedecadesasperSaudiArabiaGeneralInvestmentAuthority(SAGIA)annualreport(SAGIA,2005).

SaudiArabiaishomeoftwenty-twopetrochemicalcomplexeslocatedinthetwoindustrialcitiesJuabailandYanbu.ThesecomplexesareownedbytheSaudiGovernmentandprivetsector.Somecomplexesarejointventurebetweenlocalandinternationalinvestors.Saudipetrochemicalproductionaccountsfor8%oftheworldoutputanditisplannedtoreach15%in2015(AlMady2004).

PetrochemicalindustryisoneofthemostimportantindustriesinSaudiArabia.In2005SABICalonehadrecordedprofitsof19.2billionsSaudiriyals(SABIC,2005).TheaveragegrowthofthepetrochemicalindustryinSaudiArabiaoverthelastfiveyearsis58%(Ramady2005).Thisgrowthcomesasaresponsetoglobaldemandofpetrochemicals.However,theincreasesindemandleadtoexpandingtheexistingplantsandbuildnewones.ForexampleSABIChasaseriesexpansionaryprojectsandnewpetrochemicalcomplexlikeYANSABandUnited.

Petrochemicalprojectsassociatedwiththeproductionofpetrochemicalproductssuchasintermediates,polyester,polyolefinandfertilizer.Thoseprojectsarehighlytechnicalinnatureandfrequentlybuiltbylarge,specializedindustrialcontractingfirmsthatdobothdesignandconstruction.Besidemainprocessrelatedprojectstherearemanysupportprojectsthatoflesscomplexityandcanbedesignedandconstructedbythepetrochemicalcompanyitselforbylocalcontractors.Inbothcases,designservicesarerequired.Petrochemicalprojectsjustasotherprojectsneedtobeexecutedasperthehighqualityspecification,withinbudgetandontime.Moreover,eachpetrochemicalprojectisuniquebecauseforeachpetrochemicalproduct,thereareindustrialcodesandstandardswhichcontrolthedesignandconstructionofrelatedpetrochemicalproduct.Inaddition,petrochemicalprojectsarehightechnologyprojectandmostofthetechnologiesarepatented.Thesepatentsmaketheprocessofdesignandconstructionmuchcomplicated.ThisresearchattemptstoidentifyandassessthedesignpracticesinSABICandattemptstoimprovethecurrentqualityofdesignservicespracticesprovidedbydesignmanagementdepartment(DMD).

Researchobjectives

ThemainobjectiveofthisresearchistoidentifyandassessthedesignpracticesinpetrochemicalindustryinSaudiArabiaingeneralandinSABICparticular.Thisassessmentattemptstoimprovecurrentdesignpractices.Toachievingthisobjective,thefollowingquestionswillbeanswered:

Whatisthebestdesignpracticeappliedintheinternationalpetrochemicalfirms?

WhatisthecommondesignpracticeappliedinSaudipetrochemicalfirms?

WhatisSABICdesignpracticeforpetrochemicalprojects?

Howtomeasuretheperformanceofdesignpractice?

Whatistheroleoflocalengineeringfirmsinpetrochemicalprojects?

HowtoimprovethedesignservicesinpetrochemicalindustryinSaudiArabia.

Scopeoftheresearch

ThisstudyislimitedtodesignpracticesperformedinSaudiBasicIndustrialCorporation(SABIC)byDesignManagementDepartment(DMD).

Significanceoftheresearch

Thesignificanceofthisstudystemsfromitsnaturesinceitisrelatedtothepetrochemicalindustry,whichplaysaveryimportantroleintheSaudieconomy.Globally,thedemandofpetrochemicalisincreasingandSaudiArabiaisconsideredoneofthetoppetrochemicalsupplierssource(RAMADY2005).Forthisreason,petrochemicalindustryisexpandingtomeetthedemand.Anessentialingredientinmeetingthisdemandistoexpandexistingplantsandtobuildnewones.Constructingnewpetrochemicalplantsneedstobeexecutedinveryefficientmannertomaximizetheprofitoftheprojects.Obviously,efficientconstructiondependsonefficientdesign.Assuch,designplaysaninstrumentalroletothiscriticalindustry.

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LITERATUREREVIEW

General

Generally,designservicesforindustrialprojectsareprovidedeitherbyin-houseengineeringdepartmentorbyprofessionalA/E.Asaregulationrequirement,engineeringservicesmustbeprovidedbyapprovedlicensedengineeringfirm.TheMinistryofcommerceandindustry(MOCI)controlstheindustrialprojectsintheSaudiindustrialcitiesandTheRoyalCommissionforJubailandYanbu(RCJY)whichestablishedasanautonomousorganizationoftheSaudiGovernmentcontrolstheindustrialprojectsexecutedinJubailandYanbuindustrialcities.

CharacteristicsofPetrochemicalProject

PetrochemicalfirmsarewellorganizedandoneofthemostimportantdepartmentsisEngineeringDepartment.Mostofpetrochemicalfirmshavecontinuingconstructionprojectseitherexpansionorupgradingtheexistingfacilities.Sometimesin-housedesigndepartmentcapabilityisnotenoughtohandletheprojectsdueworkloadorduethecomplexityoftheproject.Inthiscase,theowneroutsourcestheengineeringservices.Outsourcingmightbyinformofmanpowersupplyorasacontractwithengineeringfirm(CloughandSears,1994).

Thetypicalcontractstypesinpetrochemicalprojectsare:Engineering,ProcurementandConstruction(EPC),Engineering,Procurement,Constructionandmanagement(EPCM)andlumpSumTurnKey(LSTK).Thesetypescanbeobservedfromreviewingtheworldwidepetrochemicalprojectsprofiles(Amison,2005).

InEPCprojects,thereisoneentitywhoisresponsibletoprovidetheengineering(basicdesignanddetaileddesign),thematerialsandequipment,andtheconstructionfortheproject.TheattributesofEPCcontractasthefollowing:

TheownersignsasinglecontractwiththeCPMcontractorlikeBechtelorTechnipforthedeliveryoftheentireproject.

Thedesignandconstructionaretimeoverlappedwhereconstructionmaybeginbeforedesignis100%complete.

Procurementmaybeginpriortoconstruction.

Specificationsareperformance-basedratherthanprescriptive.

Minimalownerinvolvementanddecisionsarerequired.

DesignandconstructionqualityarecontrolledbytheEPCContractor.

CostsareknownoncetheEPCcontractisawarded,andtypicallyarefixed.

TransferofresponsibilityandmostriskfromtheownertotheEPCcontractorfortheentiredesignandconstruction.

Constructionexperienceisintegratedintothedesignprocess.

OthertypeofcontractisEPCMwherethecontractincludestheprojectmanagementwithinthescopeofthecontractor.InLSTKthereislittleornoownerinvolvementinaprojectwhereinthecontractoressentiallyturnsoverthekeysforthefacilitytotheownerattheendofconstruction.InallEPC,EPCMandLSTKcontracts,commissioningandstartupareoftenincludedinthecontractor'sscopeofwork.(MasucciandFreidheim,2005).

Thehistoryofpetrochemicalprojectsshowsthat,therearemanyplayersinpetrochemicalconstructionindustryincludingowner,engineeringfirm,constructioncontractor,technologyowner,licenser,vendor(materialsupplier)andprojectmanger.Petrochemicalprojectsstartedwiththeselectedofthetechnologyofproducingthedesiredpetrochemicalproductsuchaspolyethyleneorpolypropylenefornewplantprojects.Therearemanyagenciesprovidethedifferenttechnologiestoproducesameproduct.Theownerselectstheappropriatetechnologybasedonhisprioritiesandhisability.Technologyownermaydelegatethelicensetoanotheragent.Inthiscaseprojectownerhastopaythelicenserforusingthetechnology.Afterthetechnologyisselectedandlicensed,ownercanselectsthetypeofcontractsuchasEPC,EPCMorLSTKtocompletetheproject(LoudermilkandStein,2002).

Engineeringservices

Engineeringservicescoverawiderangeofservicesincludingdesign,projectanalysisandconstructionsupportservices.

Projectanalysisservicesarethoseservicesrelatedtothefeasibilityoftheproject.Feasibilitystudyaddressestheneedoftheproposedfacility,theeconomicrequirement,siteaccessibility,locationsuitability,legalrequirement,operationmanpowertooperatethenewfacility,valueengineering,disturbanceofongoingoperationsandmarketanalysis.Projectscheduleisamajorconsiderationintheprojectanalysissinceitneedstobeselectedintherighttimetominimizeshutdowntimeanddisruptionofongoingproduction.

Projectsupportservicesincludebidevaluation,technicalevaluationconstructionsupervision,quantitysurvey,costcontrolandconstructionmanagement.

Designandplanningservices

Designandplanningservicesisthemainfunctionofengineeringservices.Developingdesignforagivenprojectentailsthepreparationoftherequiredengineeringdocumentstobuildtheproject.Generally,thedesignpackageofpetrochemicalprojectsincludesscopeofwork,drawings,specifications,requiredcalculations,materialneeded,projectcostestimateandhazardidentificationstudy.Designpackagesmayincludedocumentsusedforbiddingandofficialcommunications(CloughandSears,1994).

DesignBestPracticecanbedefinedasaprocessormethodthat,whencorrectlyexecuted,leadstoenhancedsystemperformance.Eachfirmhasitsownpracticestodevelopthedesignworkswithinthegeneralagreedpracticeknownineachindustry.GeneralagreedpracticesareissuedbyprofessionalorganizationssuchastheConstructionIndustrialInstitute(CII),NationalPetrochemicalandRefinersAssociation(NPRA)andAmericanChemicalSociety(ACS).However,therearedifferentapproachestodevelopdesignserviceswhichvaryfromindustrytoanotherandfromfirmtoanother.Eachindustryhasitsnormsandpractices.

Generally,petrochemicaldesignpackagesincludeprojectscopeofwork,specifications,designdrawings,materialrequired,costestimateandprocesshazardsanalysis.Eachoftheseitemsisexplainedbelow.

ScopeofWork

Scopeplanningis"theprocessesofprogressivelyelaboratinganddocumentingtheprojectworksthatproducestheproject"(PMBOK2000,p.55).Thescopestatementformsthebasisforanagreementoftheprojectobjectivesanditsdeliverable.

Preparingscopeofworkisacrucialprocessbecauseitimpactsalllaterstages.Inpetrochemicalprojectstheownermustdefinethescopeofworkprecisely.Becausevaguescopeofworkleadstoundesiredresults.Forexample,avendororacontractormaysupplyorconstructsomethingthatownerdoesnotneedandmaycosttheownerunnecessarily.

Thescopeofrequiredengineeringservicesissubjecttoaconsiderablevariation,dependingontheneedsandwishesoftheowner.Basictosuchservices,areestablishingtheneedsanddesiresoftheowner,developingthedesign,preparingthedocumentsrequiredforcontractorbiddingornegotiationaswellasforcontractpurposes,aidingintheselectionofacontractor,andmakinganestimateofconstructioncost(CloughandSears,1994).

Thescopeofservicesprovidedtotheownerbythedesignerduringfieldconstructiondependsontheneedsandpreferencesoftheowner.Responsibilityofthedesignertotheownermayendwhenthecontractdocumentsarefinalizedanddelivered.Ontheotherhand,theownermayrequirefullconstruction-phaseservices,includingprojectinspection,thecheckingofshopdrawings,theapprovalofperiodicpaymentstothecontractor,theissuanceofacertificateofcompletion,andtheprocessingofchangeorders.Althoughthedesignerisnotapartytotheusualconstructioncontractbetweentheownerandcontractor,thiscontractoftenconveyscertainpowerstothedesignersuchastheauthoritytodecidecontractinterpretationquestions,judgeperformance,rejectdefectivework,andstopfieldoperationsundercertaincircumstances(CloughandSears,1994).

DesignDrawings

Drawingsarethemostimportantpartofthedesignpackagesincetheycontainthemajorinformationneededforconstruction.Drawingsshowthelocationoftheprojectsite,locationofexistingutilitiesandaccessroads.Inaddition,drawingsshowtheequipmentlayoutandarrangement.Requiredquantitiesareusuallyshownindetaileddrawingsinadditiontoinstallationdetails.Contractorsrefertothedrawingmostofthetimeduringallprojectphases(CloughandSears,1994).

Drawingsofanypetrochemicalplantundergomanychangesduetotheoperationandmaintenanceactivities.TypicallythischangesdonotreflectedintheexistingdrawingstoformAsBuiltdrawings.Thearchivedmasterdrawingsremainedasitiswithoutchange.Thisactioncreatesproblemsrequiringlongtimeandalotofextraexpanses.Toavoidtheseproblems,anypetrochemicalfirmhastoapplyEngineeringDrawingsUpdateProgram(EDUP).EDUPisasystemtokeepallimportantdrawingsupdateddueanychange.

However,itisnotfeasibletoupdatealldrawingssuchasfabricationdrawingsandshopdrawings.ThecriticalandimportantdrawingsneedtobeupdatedsuchasPipingandInstrumentationDiagrams(P&ID),ProcessFlowDiagrams(PFD),designdrawings(includinglocation,equipmentlayout,plotplansandpipingplans),electricaldrawings(includingSinglelinediagram,cablelayoutandschematics),undergroundfacilitiesdrawings,AreaClassificationdrawingsandequipmentdatasheetsbasedoninspectionrecords.Thenewchangeshallbehighlightedbycloudordifferentpatterntobeidentifiedveryclearly.Revisionnumbermustbeshownwithwrittendescriptionofthechangetokeeptherecordinthedrawingitself(Goyal,2002).

Vendorsparticipateinthedesignprocessbysupplyingproductsdatatothedesigner.Vendordataarethetechnicalinformationprovidedpriortoequipmentdeliveryforthepurposeofincorporationintodesigndrawingsandspecifications.Insomecases,theincorporationismadeinasbuiltdrawingaftertheconstructioniscompleted.Vendordatacanbeadrawing,table,crosssectionorflowdiagrams(CouchaandO’Connor1996).

Thecomputerproductionofconstructiondesignanddrawingsisnowanimportantandgrowingarea.Computer-assisteddesignanddrafting(CAD)systemsarenowbeingusedbyengineers,owners,andcontractorstodesignstructuresandproducefinished,dimensionedworkingdrawingsforfieldconstructionuse,aprocessthatmakestheiroperationsmuchmoreproductiveandprofitable.CADsystemsfacilitatetherapiddevelopmentofthedesignandproductionofhigh-qualityconstructiondrawingsthatconveymuchmoreinformationthantheirmanuallycreatedcounterparts.WithCADthedesignercandraw,makechanges,model,andexperimentwithspeed,efficiencyandprecision.ThemostfamoustwoCADsoftwareusedintheindustryareAutoCadandMicroStation.

Electronicdrawingmakesthecommunicationmucheasierespeciallyinpetrochemicalindustrywherethedesignerofficeisapartfromtheowneroffice.Designercansendthedesigndrawingstotheownerforreviewandapproval.Ownercanreviewandcommentsthedrawingsandresendthembacktothedesignertoissuefinaldrawings.

CADdrawingscanbecontinuouslyupdatedrelativetochangesandmodificationsmadetoplansandelevations.Manyofthesesystemsalsodeterminethefieldquantitiesofworkasthedesignproceeds,whichmakeitpossibleforthedesignertoprepareabillofmaterialsforbiddingpurposes.Alsoavailableissoftwarethatgeneratesisometricdrawingsfromplotplan(ISOGEN).AdvanceCADsoftwarehasthecapabilitytoenhancealldatarequiredfortheplantsuchasequipmentdatasheetandrelatedcalculationshyperlinkedtothedrawing(smartplant).

Specifications

Specificationsdescribesinworldsofwhatistobedoneandhowitistobeinstalled.Thetermspecificationsrefertothedescriptionofaproductoramethod.Sometimesspecificationsrefertothecompletedesignpackagethatincludesdrawingsandthewrittendescriptionboundinabooktosupplementthedrawings.Thegeneralpracticeistorefertodrawingsasplansandtothebookasthespecifications(CloughandSears,1994).

Specificationsaredividedintothreedivisions:biddingdocuments,conditionsandtechnicaldivision.Biddingdocumentscontainsinvitationtobid,instructionsforbiddersandproposalform.Conditionsincludethegeneralandspecialconditionsofthecontractbetweentheownerandconstructioncontractor.Bothbiddingdocumentsandconditionsdivisionsareusedforcontractingmanagement.Generally,bothdivisionsarenotchangedexceptthespecialconditionsarerevisedtosuiteeachproject.Dependingontheownerpolicy'sandrules,thosetwodivisionsmaytakedifferentshapes.Forpublicprojectswhenthegovernmentmanagestheprojectsandthebiddingisopenforallqualifiedcontractstoparticipatewithsamedocumentformat.Inthecaseofpetrochemicalprojectsonlyfewqualifiedcontractorswhosealreadyfamiliarwithowner'scontractingsystemarebiddingfortheproject.Thus,thebiddingdocumentandconditionscanbecustomized.

Normally,bigpetrochemicalorganizationsprocurementdepartmenttakecareofbiddingdocumentsandconditionsdivision.Contractorsusuallysubmitaprequalificationtoprocurementdepartmentandifthecontractorsatisfiestheminimumowner’srequirements,thecontractorisapproved.Onceacontractorisapproved,heiseligibletobeinvitedforbid.Forthatreason,approvedcontractorsareawareaboutownerrulesandconditions.

Technicaldivisionispurelyengineeringdocument.Thereisnouniquemethodtowritethetechnicalspecifications.However,therearesixbasictypesofspecifications:performance,description,brandname,closed,openandreferencespecifications.Inaddition,combinationspecificationcontainingtwoormoretypemaybeusedinsomecases(CloughandSears,1994).

Performancespecificationisonewheretheperformanceoftheproductratherthantheproductitselfisspecified.Exampleofperformancespecificationsiswhenapumpisrequiredforpumping10gallonperminutewith30poundpersquareinch(PSI);motorpowershallbefivehorsepowerwith220volts.

Descriptivespecificationisperformancespecificationplusothercriteriasuchasshape,sizeorcolor.Inpreviouspumpexample,pumpskidsizeorarrangementcanbeaddedtothespecificationtobecomedescriptivespecifications.Descriptiveandperformancespecificationarecalledopenspecifications.

Brand-namespecificationiswhereaspecificproductisspecifiedbymanufacturingnameandmodelnumber.Brand-namespecificationisclosedspecifications.Although,inclosedspecificationmanybrandsmaybespecifiedasalternatives.Inthiscase,thespecificationcalledmulti-productspecification.Also,thisclosedspecificationscanbemadeopenbyadding"orapprovedequal".

Referencespecificationiswheretheitemdesiredisreferredtobyanumbercorrespondingtoanumberinpublishedspecification.Thistypeusedwhentheownerprintcompletespecificationsoncommonlyusedproducts.Usuallythistypeusedforspecificownerprojectsonly.

Combinationofspecificationstypesmaybeusedinsomecases.Itusedwhereaproductisneededwithspecificmechanicalcharacteristicsandcomplywithcertainstandards.Forexample,apumpisneededwithparticularperformanceparameterspluscompliancewithAPI-610(AmericanPetroleumInstitute,centrifugalpumpstandards).

Inpetrochemicalprojects,performancespecificationsareusedmostfrequently.However,brandnamespecificationisusedtoofortworeasons:tomatchexistingequipmentandtoreducemaintenance.Usingsamebrandallovertheplantleadstoreducedsparepartsinventoryandmaintenanceeffort.Ontheotherhandusingbrand-namemaycosttheownermoresincetherearecheaperalternatives.Performancespecificationgiveschancetoselectthebestoffersatisfyingtherequirement(Amison,2005).

Petrochemicalprocessesareveryadvancedtechnologythatinnovatedbyacompanyorbyresearchinstitute.Thepatentisissuedfortheinnovatorwhomaynotinvolveinthemarketingorbusinessindustryratherthanresearchorproducing.Therefore,innovatororpatentholderfirmmayneedathirdpartytomarketitsinnovationtotheclients.Inthiscase,thelicenseisissuedforthetiredpartywhocalledthelicenser.Thenewtechnologyequipmentismanufacturedbyapprovedmanufacturer.Mostofpetrochemicalprocessproductsmarketismonopolymarketwhereuniqueproductcontrolledbysinglefirm(Amison,2005).

Consequently,projectownerinterferenceisverylimitedinprocessrelatedprojectsandspecificationtypeisb