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Showing posts with the label Capex Projects

Process Vessel Testing: What Are You Really Verifying?

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Before a process vessel sees its first drop of product, it should pass more than just a visual inspection. Testing is engineering discipline. And yet, I still see confusion between leak tests, service tests, hydrostatic tests, and pneumatic tests. Each serves a different purpose, and choosing the wrong one or skipping it altogether can cost far more than the test itself.  A hydrostatic pressure test in progress Why Test at All? Because once that vessel is in service, failure isn’t theoretical. It’s downtime, contamination, environmental risk, and reputational damage. Testing isn’t a formality; it’s your last chance to catch what drawings and weld logs can’t. Whether you’re commissioning a new reactor, validating a retrofit, or preparing for regulatory inspection, pressure testing is your final line of defense. It verifies that the vessel can withstand operating conditions, contain the process media, and perform safely over time. But not all tests are created equal. 1. Hyd...

(Project) Risk? Identify it. Register it. Document it. Mitigate it.

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  Summary In project management, especially in high-stakes CAPEX environments, risk is inevitable. But unmanaged risk is unacceptable. This post explores why hope is not a strategy , and how structured risk management frameworks like PMI and PRINCE2 help teams proactively identify, document, and mitigate risks. It covers: Key principles from PMI and PRINCE2 Common and overlooked risks in CAPEX projects How to handle “Acts of God” A practical Excel-based risk register tool Why risk management is a mindset, not just a method Whether you're leading a capital project or refining your enterprise risk strategy, this post offers actionable insights and tools to strengthen your approach.   Risk? Identify it. Register it. Document it. Mitigate it. Let’s be real: hope is not a strategy. Wishing things will go smoothly doesn’t stop risks from becoming real problems. If you don’t spot the risks early, they’ll spot you later—usually at the wo...

The Triple Point Principle in Projects

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  The Triple Point Principle: A Thermodynamic Metaphor for Industrial Project Success In thermodynamics, the triple point is a rare equilibrium where a substance exists in solid, liquid, and gas simultaneously. It’s not just a scientific curiosity, it’s a metaphor we embrace at TriplePoint.Engineering . In industrial project management, the three states become Cost , Schedule, Scope which determine overall Quality . These elements must coexist in harmony. Change one, and the others will respond. Push too hard on cost quality will suffer. Accelerate the schedule, and costs can spiral. Over-engineer for scope, and timelines may collapse. “You can’t have it all, but you can have enough, if you balance wisely.” This is the Triple Point Principle,  a concept that should guide every industrial project, from greenfield construction to brownfield upgrades, from chemical plants to you name it. It is universal law.   The Risk of Imbalance: Real-World Lessons from the...

And Now the Time Is Near… Project Closure: The Forgotten Finale

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The last weld is inspected. The system is commissioned. The plant hums to life. The project team moves on. And somewhere, months later, the “as-built” documentation trickles in. This is the reality of project closure in capital-intensive industries. It’s not a clean finish. It’s a slow fade. And in that fade, vital information is lost.     As-Built Files: Late, Light, and Lacking By the time the general mechanical contractor delivers the final documentation, the project is already in operation. The team that built it? Long gone. The team that runs it? Often unaware of what’s missing. And what’s missing is more than just equipment manuals. It’s the full technical backbone of the asset: Specification sheets Design calculations Relief scenarios Control narratives Commissioning reports Warranty conditions These aren’t just nice-to-haves. They’re essential for safe, efficient, and compliant operations. Yet 10 years down the l...

Choosing the Right Contract for CAPEX Projects: Difficult?

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Difficult yes, but this you need to know first. Executing a capital expenditure (CAPEX) project, whether it's building a manufacturing facility, upgrading infrastructure, or launching a renewable energy installation, requires more than technical expertise. The type of contract you choose can significantly influence your project's cost, timeline, risk exposure, and overall success. Common Contract Types and Their Implications One of the most widely used models is the Lump Sum or Fixed Price contract. In this arrangement, the contractor agrees to deliver the project for a predetermined price. This offers budget certainty and simplifies payment structures, making it ideal for projects with a well-defined scope. However, it can be rigid, any changes to the design or scope may lead to costly change orders, and contractors may be tempted to cut corners to protect their margins. A Cost Plus contract reimburses the contractor for actual costs incurred, along with a fixed or percen...

What Is PDRI and Why It Matters for Capital Project Success

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In capital-intensive industries, the success of a project often hinges on how well it’s defined before execution begins. Rushing into detailed design or procurement without a clear scope can lead to cost overruns, delays, and rework. That’s where the Project Definition Rating Index (PDRI) comes in, a structured, objective tool developed by the Construction Industry Institute (CII) to assess the completeness of front-end planning. PDRI isn’t just a checklist, it’s a strategic decision-support tool that helps project teams and stakeholders understand how much engineering and planning work has actually been done, and whether the project is ready to move forward.   What Is PDRI? PDRI stands for Project Definition Rating Index, a scoring methodology used to evaluate the maturity of a project’s scope definition. It covers critical elements across engineering deliverables, execution planning, site conditions, contracting strategies, and risk management. Each element is scored bas...