Home / Insights

FEED series · Part 2 of 3

The Design Basis: Ten Decisions to Fix Before Engineering Starts

The design basis is a short document, usually 10 to 20 pages. It records the decisions that every other engineering document depends on. If one of them changes later, the change runs through the whole design.

Post 1 set out the five project stages. The design basis is drafted in pre-FEED and frozen at the start of FEED. This post lists the ten decisions it should contain, using the same $100M specialty chemical plant.

The ten decisions

Table 1. The ten decisions in a design basis

DecisionWhat to fixWhat it drives
1. CapacityAnnual production, in tonnes of saleable product. Minimum rate the plant must run at (turndown).Size of every item of equipment
2. Operating scheduleHours per year, shifts, planned shutdowns.Hourly design rate, staffing
3. FeedstocksSpecification of each raw material, its range of quality and how it is delivered.Reactor design, purification steps, storage
4. ProductsSpecification and grades of each product, by-products and how they leave the site.Separation and finishing equipment, packaging
5. Site conditionsLocation, design temperatures, elevation, seismic and wind data, soil conditions.Cooling design, structures, winterization
6. UtilitiesWhat the site supplies and at what conditions: power, steam, cooling water, nitrogen, compressed air.New utility systems or tie-ins
7. Battery limitsWhat is inside the project and what is outside. Every tie-in point.Scope and cost estimate
8. Codes and permitsDesign codes, provincial and municipal rules, emission and effluent limits.Materials, safety systems, treatment units
9. Operating philosophyBatch or continuous, level of automation, spare equipment, days of storage.Control system, equipment count, tank sizes
10. Future expansion and marginsAllowance for later capacity, design margins on equipment, plant life.Plot space, line and utility sizing

Most of these are business decisions, and only the owner can make them. The engineer's role is to ask for each one, explain what depends on it and record the answer.

Worked example: capacity and operating hours

Suppose the owner wants 50,000 tonnes of product a year. That figure does not set the size of the plant until the operating hours are fixed. Equipment is sized for an hourly rate:

Design rate = 50,000,000 kg ÷ 8,000 h = 6,250 kg/h

A continuous plant typically runs about 8,000 hours a year, which leaves time for maintenance shutdowns. Fewer hours mean a higher hourly rate and larger equipment for the same annual output.

05,00010,000Design rate, kg/h6,250 kg/h8,000 h/yContinuous7,143 kg/h7,000 h/yLonger shutdowns8,333 kg/h6,000 h/y24 hours, five days12,500 kg/h4,000 h/yTwo shifts, five days
Figure 1. Design rate needed to produce 50,000 tonnes a year at four operating schedules.

Table 2. Effect of operating hours on design rate and equipment cost

ScheduleOperating hoursDesign rateRate against baseEquipment cost against base
Continuous, 24/78,000 h/y6,250 kg/hBaseBase
Continuous, longer shutdowns7,000 h/y7,143 kg/h+14%+8%
Five days a week, 24 hours6,000 h/y8,333 kg/h+33%+19%
Two shifts, five days4,000 h/y12,500 kg/h+100%+52%

The cost column uses the six-tenths rule, in which equipment cost rises with capacity to the power of 0.6. It is an approximation for screening. Even so, the choice between 8,000 and 6,000 hours changes the equipment cost by about 19%, and it is made in one line of the design basis.

Why a late change costs so much

The design basis sits at the start of a chain. It sets the heat and material balance, and the balance sets the documents that follow.

Design basisHeat and materialbalancePFDs and P&IDsEquipment sizesand datasheetsUtility loadsPlot plan andlayoutCost estimateand schedule
Figure 2. Every later document is calculated from the design basis, so a change at the start has to be carried through all of them.

Table 3. What a 20% capacity increase affects, by when it is made

When the change is madeWhat has to be redoneRelative cost
Pre-FEEDOne line in the design basis and the option studyLow
During FEEDBalance, PFDs, equipment sizes, utility loads, estimateMedium: weeks of rework
Detailed designAll of the above, plus vendor quotations, piping and structural designHigh: months of delay
ConstructionPurchased equipment replaced or modified, installed work removedVery high

What a completed design basis looks like

For the example plant, the summary page might read as follows.

Table 4. Design basis summary for the example plant

ItemBasis
Capacity50,000 t/y of product, turndown to 50%
Operating schedule8,000 h/y, continuous, one planned shutdown a year
Design rate6,250 kg/h
Main feedstockDelivered by rail car and tank truck, minimum purity 98%, 10 days of storage
ProductTwo grades, minimum purity 99.5%, shipped in bulk and in 1,000 kg totes
SiteExisting industrial site, design temperatures −30°C to 35°C
Utilities from sitePower and natural gas. Cooling water, nitrogen and steam are in project scope.
Operating philosophyAutomated control from one control room, spare pumps on critical services
ExpansionPlot space and utility headers sized for a second train

Three rules for managing it

  • The owner signs it. A signed design basis is the agreed starting point. Later changes go through a formal change request with a cost and schedule estimate.
  • Open items are listed. Any value still unknown is marked as a hold, with a named person and a date. A hold that is still open at the end of FEED becomes a risk in the estimate.
  • Each value has a source. A specification from a customer contract carries more weight than a figure someone remembered. Record which one it is.

Takeaway. Fix the ten decisions before FEED starts and have the owner sign them. On the example plant, one of them alone, operating hours, moves equipment cost by 8% to 52%.

The plant, its capacity and its costs in this series are an illustrative example. The ranges and percentages are typical industry values and do not replace an estimate prepared for your project.

Keep reading

Related articles

All 155 articles
Process EngineeringProject Management

FEED series · Part 3 of 3

What a FEED Package Contains, and What Each Document Decides

The documents in a FEED package, what each one decides, how the Class 3 estimate is built from them, and eight questions to ask before you approve the project.

Nov 11, 2026 · 5 min read

Ready to find your next improvement?

Book a strategy call. We will talk through your goals, pain points and where AI, systems or process work can make the biggest difference.