Economic analysis of the specific proposal
The preliminary analysis can be done within the project team, if an experienced “cost engineer” is available, or by a specialized consultant, or it may be subcontracted to an engineering company. It is based on:
• The process data contained in the preliminary design package, which was described in the previous chapter
• The cost data available in the files from previous projects • The input from the marketing experts • The non-committing, up-to-date quotations for the major equipment, ob-
tained by direct contact with potential suppliers (not as formal tenders)
To save time, this economic analysis could be started on partial drafts of the preliminary design package, which could be supplied informally, but of course, the “bottom line” recommendation can only be completed after the preliminary design package is completed and ready to be formally presented.