Best Practices for Constructability Review and Value Engineering for Heavy Industrial Applications

A challenge in heavy industrial applications is for the project team to ensure their planning is done to make the project as feasible as possible and to make sure that the final design adheres to the original scope.  The difficulty with the planning stage occurs when the project team in the design phase relies on the construction experience of the owner and engineer’s team with limited input from local contractors.  Appropriate gateway planning is needed to avoid unnecessary creep that does not align with the project goals and objectives. Managing scope control can be done by using stage gate project planning that has a clear record of the scope that is part of the project approval.

I have been personally involved in the development and construction of projects for more than 25 years in the metals industry. I started in the civil/structural design group and became the engineering project manager for multi-disciplinary projects for large capital projects at steel mills located all over North America.  These projects typically aim to launch a new product (steel grade), improve an existing product line or in some cases for regulatory purposes such as environmental limitations.  We typically start planning a project with the ownership group and a preferred equipment supplier who will be providing the equipment and process design.  In almost all recent projects, the owner has acted as the general contractor and let our bids by trade.

Where possible, we use a project planning gateway system with an initial preliminary planning stage.  It is here that we decide on a technology solution, location for the new equipment and make a high-level plan of how to integrate this new technology into an existing plant.  The preliminary planning stage is followed by the basic engineering stage where we delve deeper into project specifics, including preliminary designs which become inputs for work package schedules, and material take-offs (MTOs) for cost development. A new and integral step we have been including at this stage is a constructability review, where members of the construction community analyze the plan before funding. This step ensures early identification of potential execution challenges or scope discrepancies.  The end goal of this stage is an investment file that is submitted by the owner to their board for final project approvals.    

It is important to understand that the constructability review benefits all parties involved. While contractors are selected based on their client history and potential for future construction work, their inclusion is not to provide free advice or give away competitive advantages through their experience and knowledge - but rather to identify project roadblocks. These roadblocks can become surprises that have the potential to derail a project if not identified in the early stages. The Contractor should gain an understanding of the project in the early stages that will allow them to consider efficiencies or technologies which in turn may improve their bid.  Participation by the contractor also serves as early notice of the upcoming project and when the project hits the streets, they are ready!  Open dialogue during these sessions often leads to valuable insights for all involved. As an example, a millwright contractor recently proposed making a portion of an end wall removable, allowing quick installation of large, late-arriving equipment—an idea that enabled the building to be closed until necessary and was incorporated into the steel contractor's bid package.

Value engineering, although challenging in fast-paced projects, is achievable through diligent planning. The key is to perform the upfront work with the owner to develop a solid execution plan.  When we develop the project using a gateway approach, part of the planning involves developing a comprehensive work breakdown structure (WBS) with clear scope definitions and associated costs. Each work package, derived from the WBS, is meticulously tracked throughout construction. This provides for timely identification of scope adjustments and enables informed decisions on whether to retain or remove certain scope based on budget constraints.

In summary, successful heavy industrial projects require collaborative planning, leveraging the expertise of all stakeholders without compromising competitive advantages. Proper gateway planning ensures project definition and control, ultimately leading to successful project outcomes.