During the project Assess phase, the business opportunity is evaluated at a high level. Project criteria and objectives are developed for key components with major resource definition activities initiated. The key objective of this stage of the project development life cycle is to confirm the attractiveness of the opportunity prior to committing further funding. The level of detail is in line with the accuracy, veracity and confidence required for the decision to proceed to the Select phase (typically +/- 30 to 60%).
During the project Select phase, project criteria and objectives are reaffirmed and an increased level of project detail is assessed. Resource definition continues targeting the next level of detail and sufficient engineering is conducted to allow selection of the preferred project configuration case. A key objective from this stage is the identification of a preferred project configuration that maximises the value of the business opportunity. The level of detail is in line with the accuracy, veracity and confidence required for the decision to proceed to the Develop phase (typically +/- 15 to 30%).
The Develop phase is the last stage of the feasibility study assessment process. During this phase, the selected configuration case from the Select phase is studied in much greater detail to achieve sufficient accuracy in resource definition, approvals, costs and schedule to secure project funding. The level of assessment ensures no fatal flaws and that significant risk are identitied and mitigation strategies established for implementation during the project execution stage. The level of detail is in the with the accuracy, veracity and confidence required for the decision to proceed the the Execute Stage (typically +/- 10 to 15%).
Upon approved of the Detailed Feasibility Study which forms the basis of the project development, the project enters a Verification phase. The purposa of this phase is to ensure the enginear responsible for project execution conducts a final review to ensure no omissions or fatal flaws exist in the design, capital and operating cost estimates and schedule that will cause the project to exceed the level of accuracy estimated i.e. +/- 10 to 15%. The Verification phase is not considered an opportunity to significantly change project scope (unless a fatal flaw), as these changes will in most circumstances increase costs and time, requiring both the budget and schedule to be updated and reissued as the basis of project control. Clearly, defining the Scope of Work during the Develop phase is critical.
As the project enters the Execution phase, a significant increase in egineering acivity occurs. Design is translated into vendor packages for final cost assessment and procurement and detailed engineering and planning commence to ensure site activities proceed according to the approved shedule.
The final phase of the project life cycle involves closure of any remaining project development activities as the project moves into an operations function. Activities include finalisation of facility drawings, contract claims, archives handover to operations, any final plant modifications and project team demobilisation.