Independent Project Analysis (IPA) benchmarking, drawn from a proprietary database of thousands of capital projects worldwide, tells a consistent story: large industrial capital projects routinely overrun approved budgets by 25 percent or more, with the worst performers exceeding 80 percent. These benchmarks reflect global and predominantly U.S. project data; Canadian project teams should consider local labour markets, regulatory timelines, and procurement conditions when applying these figures. Schedules slip by 6 to 18 months. The worst cases stretch 30-plus months. The root cause is almost never a single engineering mistake. It is the cumulative damage from poor front-end loading, fragmented discipline coordination, and information silos that compounds with each subsequent phase.
These failures are preventable, but only if you understand the full industrial site development process as an integrated lifecycle, not as disconnected phases handed off between separate contractors. This guide walks through each stage of the industrial facility development lifecycle, from feasibility through commissioning, with a specific focus on how multi-discipline engineering coordination controls total installed cost (TIC). Whether you are an owner-operator evaluating a capital expansion, a project manager planning execution strategy, or an engineer preparing for a new assignment, understanding how these phases connect determines whether your project lands on budget or joins the overrun statistics.
For a midsize facility in Western Canada, TIC ranges from $100 million to $500 million or more. The phase durations, team sizes, and cost percentages cited throughout this guide represent typical ranges for midsize facilities in Western Canada. They may vary based on project scope, complexity, regulatory environment, and market conditions at the time of execution.
Vista Projects, an integrated industrial engineering and system integration firm established in 1985, has supported capital projects across 13 energy markets in Calgary, Alberta. This guide reflects the site engineering lifecycle as it is actually practised across heavy oil, gas processing, biofuels, hydrogen, and carbon capture projects, including the Canadian regulatory context (CSA standards, APEGA requirements, AER directives) that governs industrial site development across the country.
What Is Industrial Site Development?
The industrial site development process encompasses the full engineering lifecycle, from initial feasibility assessment through design, construction, and commissioning to operational handover. Unlike civil site preparation, industrial site development coordinates multiple engineering disciplines across six sequential phases: feasibility, pre-FEED, FEED, detailed engineering, procurement and construction support, and commissioning.
Search for “site development process,” and you will find page after page about grading dirt, testing soil, and installing drainage. That is civil site preparation, one component, not the process itself. Industrial site development coordinates seven engineering disciplines across a 30- to 48-month lifecycle from conceptual design through operational handover: process, civil/structural, electrical, instrumentation and controls, mechanical, piping, and structural.
The process follows a stage-gate model where each phase must pass a formal review before advancing. Each phase produces deliverables that must reach the target engineering maturity before the project progresses. Skip a gate or rush through one, and the consequences surface 6 to 18 months later as rework, cost growth, and commissioning failures. Fixing the same problem at that point can cost 10 to 100 times more than getting the engineering right the first time.
Why does the cost multiply so dramatically? A design change during FEED requires revising a drawing. That same change during construction means stopping fieldwork, reengineering affected systems, reordering materials, and remobilising trades, while every other crew on site waits. A single P&ID revision that costs $5,000 to $15,000 during FEED can generate a $200,000 to $500,000 construction change order once steel is in the air.
Industrial site development encompasses both greenfield projects (new facility construction on undeveloped land) and brownfield projects (modifications, expansions, or repurposings of existing sites). Both follow the same phase sequence, though the engineering challenges differ in ways that directly affect cost and schedule.
Key Phases of the Industrial Site Development Process
The capital project development phases follow a consistent six-stage sequence:
- Feasibility and Conceptual Design. Evaluates technical viability and preliminary economics (AACE Class 5 estimate, ±30–50%).
- Pre-FEED. Develops the design basis and preliminary P&IDs that all disciplines work from (AACE Class 4, ±15–30%).
- Front-End Engineering Design (FEED). Matures deliverables to support a final investment decision and lock in the majority of total installed cost (AACE Class 3, ±10–15%).
- Detailed Engineering. Produces issued-for-construction documentation across all disciplines (AACE Class 2, ±5–10%).
- Procurement and Construction Support. Manages long-lead equipment procurement, vendor reviews, and as-built documentation.
- Commissioning and Handover. Verifies every installed system against design parameters before operational handover.
The following sections detail what happens at each stage, and where the most consequential risks emerge.
Feasibility and Conceptual Design
Duration: 2 to 4 months. Team: 5 to 15 people. Cost: 1-2% of TIC.
The feasibility phase determines whether the project should proceed, evaluating technical viability, preliminary economics, and site selection criteria before committing the 30- to 80-person engineering team required for FEED.
Process engineers lead the effort, developing initial process simulations and heat and material balances. The process flow diagram (PFD), which establishes flow rates, temperatures, pressures, and major equipment, serves as the foundation for all subsequent engineering work. Civil and environmental teams provide initial site assessment data. Together, these evaluations produce a preliminary equipment list (20 to 50 major items for a midsize facility), a conceptual plot plan, and an AACE Class 5 cost estimate (as defined by AACE International Recommended Practice 18R-97). At this stage, engineering is only 2-5% complete. The whole point is to determine whether the concept merits the $2 to $10 million investment required for pre-FEED and FEED.
The greenfield versus brownfield evaluation also begins during the feasibility phase. The choice between building on undeveloped land or modifying an existing facility shapes everything from regulatory pathway to capital cost structure. Make the wrong call here, and you spend the rest of the project compensating for it.
Pre-FEED
Duration: 3 to 6 months. Team: 15 to 30 people. Cost: 1 to 3 percent of TIC.
Pre-FEED bridges the gap between a promising concept and a bankable project. The primary output is a basis-of-design document, a foundational technical reference defining process conditions, design codes, material specifications, environmental requirements, and site-specific criteria that every discipline will use going forward.
During pre-FEED, engineers develop preliminary piping and instrumentation diagrams (P&IDs). These detailed graphic representations show every pipe, valve, instrument, and control device and how they interconnect. A midsize gas processing facility produces 80 to 150 P&ID sheets by the end of detailed engineering. Preliminary versions take shape here. Initial material selection studies also begin. Whether piping is carbon steel, stainless steel, or an exotic alloy is a decision that can swing material costs by 300 to 500 percent.
All seven engineering disciplines are now engaged at a preliminary level, defining interfaces and identifying coordination requirements. Pre-FEED is also the stage for early regulatory engagement. Projects should initiate the AER Directive 056 application process (Energy Development Applications and Schedules) during pre-FEED because regulatory review can take 6 to 18 months or longer. That timeline runs in parallel with engineering only if you start early enough.
A practical note: pre-FEED is when most owners should engage their integrated engineering partner, not during FEED. By the time FEED starts, your design basis should already be established, your discipline interfaces defined, and your data management approach set. We see this pattern repeatedly: an owner engages a FEED contractor without a completed design basis, and the first three months of FEED are spent doing pre-FEED work at FEED prices with a FEED-sized team. That is a $1 to $3 million mistake before any real FEED progress begins.
Front-End Engineering Design (FEED)
Duration: 4 to 8 months. Team: 30 to 80 engineers. Cost: 2 to 4 percent of TIC.
Front-end engineering design (FEED) is the pivotal phase where P&IDs, equipment specifications, and cost estimates reach sufficient maturity to support a final investment decision (FID). If there is one phase that determines whether a project succeeds or fails financially, FEED is it.
The reason is straightforward: decisions made during FEED determine 70 to 80 percent of total installed cost, even though FEED itself accounts for only 2 to 4 percent of the total project budget. On a $200 million project, the $4 to $8 million spent on FEED shapes $140 to $160 million in committed cost. That ratio bears emphasis. The phase where you spend the least money has the greatest influence on what the project ultimately costs.
During FEED, engineers work concurrently across all disciplines. Process engineers finalise P&IDs and run detailed simulations. Civil and structural teams develop foundation designs based on equipment loads. A single compressor package can weigh 50 to 200 tonnes. Electrical engineers size power distribution for 5 to 25 MW of installed capacity. I&C specialists develop control narratives and safety instrumented system (SIS) specifications. Piping engineers develop routing studies. Mechanical engineers finalise equipment datasheets.
HAZOP studies, or hazard and operability studies, are structured, cross-disciplinary reviews that identify process hazards node by node across the P&IDs. They are completed during FEED and typically take 3 to 6 weeks for a midsize facility. Why during FEED? Because HAZOP findings change P&IDs, and P&ID changes cascade through every downstream discipline. A HAZOP finding that adds a pressure relief valve during FEED costs the price of updating a few drawings. The same finding during detailed engineering triggers revisions across P&IDs, piping isometrics, structural supports, electrical load lists, and instrument indexes. That is a 5-10x cost multiplier.
Data-centric execution becomes critical during FEED. AVEVA provides the asset information management platform, including AVEVA Engineering for data-centric information management and AVEVA E3D Design for 3D plant modelling, that maintains a single source of truth across all disciplines. When every discipline draws from and contributes to the same data environment, information silos collapse, and rework rates can drop significantly compared to document-centric execution.
The single most common acceleration mistake in capital projects is compressing or skipping FEED. IPA benchmarking data consistently show that projects with poor front-end loading (engineering maturity below 60 percent at FID) experience up to three times the cost growth and twice the schedule slip of projects that complete FEED properly. These findings are based on IPA’s global dataset and are broadly consistent with Canadian project experience. That “shortcut” does not save three months. It adds twelve. Do not add to the collection.
How long does the industrial site development process take from feasibility to first production?
The full industrial site development process takes 30 to 48 months for a midsize facility. Feasibility takes 2 to 4 months, pre-FEED 3 to 6, FEED 4 to 8, detailed engineering 8 to 14, construction 12 to 30, and commissioning 2 to 6. Project execution stages overlap. Long-lead procurement begins during FEED, which compresses the overall timeline.
Detailed Engineering
Duration: 8 to 14 months. Team: 50 to 150 engineers. Cost: 4 to 8 percent of TIC.
Detailed engineering transforms the FEED package into issued-for-construction (IFC) documentation. These are the drawings, specifications, and material takeoffs that any competent contractor can use to build without guesswork.
Multi-discipline coordination hits peak intensity here, with engineers producing IFC P&IDs, piping isometrics (300 to 2,000+ sheets), structural steel drawings, electrical single-line diagrams, instrument loop diagrams, cable schedules, and construction work packages. Clash detection in the 3D model is critical because catching a pipe-structural steel conflict on screen costs $500 to resolve. Finding the same conflict in the field after steel is erected costs $50,000 or more. A thorough 3D review catches 500 to 5,000 clashes before they reach the field.
Change management becomes essential. A design change during detailed engineering costs 5 to 10 times what the same change would have cost during FEED. During construction, the multiplier can increase by a factor of 50-100. APEGA, the Association of Professional Engineers and Geoscientists of Alberta, requires that licensed Professional Engineers (P.Eng.) stamp and sign critical deliverables, including pressure equipment designs per CSA B51 (with ABSA, the Alberta Boiler Safety Association, serving as the provincial authority for pressure equipment registration and inspection) and electrical system studies per CSA C22.1.
Procurement and Construction Support
Procurement: 12-24 months for long-lead items. Construction: 12 to 30 months. Combined: 75 to 85 percent of TIC.
Engineering does not end when drawings are issued. During procurement, engineering teams review 200 to 1,000+ vendor document submittals, verify equipment meets specifications, and resolve fabrication queries. Long-lead procurement, including compressors, pressure vessels, heat exchangers, and large transformers with 12- to 24-month fabrication timelines, begins during FEED to protect the overall schedule.
During construction, the engineering team responds to 500 to 2,000 requests for information (RFIs), manages design changes, and produces as-built documentation. Construction work package sequencing directly affects productivity. Release packages out of sequence, and you have trades stacking in congested areas, burning schedule float that cannot be recovered.
Commissioning and Handover
Duration: 2 to 6 months. Cost: 2 to 5 percent of TIC.
Commissioning is where the engineering work gets tested against reality. Every installed system, typically 50 to 200 in a midsize facility, must be systematically verified before the owner’s operations team takes control. The process moves through pre-commissioning checks, system-by-system functional testing, performance testing, and punch list resolution (500 to 3,000 items).
A critical point that is frequently underestimated: commissioning success depends overwhelmingly on engineering decisions made 12 to 36 months earlier. Clean P&IDs from FEED, well-documented control narratives, and complete instrument loop diagrams from detailed engineering. These allow commissioning to proceed on schedule. When front-end documentation is incomplete, commissioning becomes a form of reverse engineering. We have seen commissioning phases stretch from a planned 3 months to 9 or more months when upstream documentation was inadequate. That is not a commissioning failure. That is a FEED failure that took 18 months to become visible.
For projects executed on a data-centric platform, handover transfers a living digital twin, a data-rich replica mirroring the facility’s as-built condition and operating parameters, to the operations team. Not a stack of disconnected PDFs.
Greenfield vs Brownfield: Engineering Considerations for Industrial Site Development
Greenfield development builds a new facility on previously undeveloped land. Brownfield projects modify, expand, or repurpose existing sites. Each path carries distinct cost, regulatory, and engineering implications that affect every phase of the site development lifecycle.
Greenfield projects offer maximum design freedom but require higher upfront capital (greenfield TIC typically runs 20 to 40 percent higher than brownfield TIC for equivalent capacity because all infrastructure must be built from scratch) and longer timelines (add 6 to 12 months for site preparation). Extensive site characterisation, including geotechnical investigation, environmental baseline studies, and hydrogeological assessments, often requiring 6 to 12 months of pre-construction work. In Alberta, greenfield projects require a full AER environmental assessment under Directive 056, a regulatory process that can take 6 to 18 months or longer, depending on project complexity and public involvement.
Brownfield projects appear to offer faster timelines and lower costs, but that appearance can be misleading. Brownfield engineering requires condition assessment of existing assets (2-6 weeks of field walkdowns per process unit), tie-in engineering, and shutdown planning around a live facility. Outdated or missing documentation, affecting an estimated 40 to 60 percent of facilities built before 2000, forces months of field verification before design begins.
The decision should be evaluated during feasibility and resolved during the pre-FEED phase. One common mistake: assuming brownfield is always cheaper. Industry data suggests 50 to 60 percent of brownfield projects encounter undocumented conditions, including hidden pipe runs and uncharted underground utilities, that generate unplanned scope. These figures are drawn from broad industry experience and may vary based on facility age, documentation practices, and regional construction standards. When those conditions surface, cost overruns can eliminate every dollar of projected savings over greenfield.
The Role of Multi-Discipline Engineering in Site Development
Industrial site development requires seven disciplines working in concert: process, civil/structural, electrical, I&C, mechanical, piping, and structural. The challenge is not any single discipline’s work. It is the handoffs between them that can consume 15 to 25 percent of total engineering hours when disciplines are not integrated.
Process engineering produces PFDs and P&IDs that define what the facility does. Every other discipline works from those documents. Every discipline’s output is another discipline’s input. A two-week delay in motor data from mechanical delays, electrical load studies, which delays cable sizing, which delays cable tray design, which delays the 3D model for everyone. When disciplines are spread across separate firms with separate data systems, coordination overhead is substantial, and information gaps are inevitable.
Integrated engineering firms manage this by co-locating teams and using shared data environments. A data-centric execution model, using platforms like AVEVA Engineering for centralised tag management and AVEVA E3D Design for integrated 3D modelling, maintains a single source of truth across all disciplines. When every discipline works from the same data environment, the information silos that cause rework never form. Every manual data transfer between systems introduces error risk. Eliminate the re-keying, eliminate the error category.
If you take one thing from this article, make it this: the hardest problem in industrial site development is not any single discipline. It is the coordination between them. IPA benchmarking data consistently indicates that integrated, co-located teams achieve approximately 20 percent lower TIC and roughly 30 percent fewer schedule overruns than fragmented multi-firm engineering. Not sometimes. Not on certain project types. Across their dataset. These figures are drawn from IPA’s global project database; Canadian facilities should validate against local project experience, though the directional pattern is consistent across jurisdictions.
Why Is Front-End Engineering Design (FEED) Considered the Most Critical Phase?
FEED is the most critical phase because engineering decisions made during FEED lock in the vast majority of total installed cost while consuming only a fraction of the total project budget. The cost of design changes increases exponentially after FEED. Typical ranges run $5,000 to $50,000 during FEED, $25,000 to $250,000 during detailed engineering (5–10x), and $250,000 to $2.5 million during construction (50–100x), though actual costs depend on the nature and scope of the change. FEED is the last phase where major decisions are affordable.
The Canadian Standards Association (CSA) codes, including CSA C22.1 for electrical installations, CSA B51 for pressure equipment (administered provincially by ABSA in Alberta), and CSA Z767 for process safety management, form the regulatory foundation for industrial site development in Canada. Confirming code compliance during FEED avoids redesign cycles that cost $100,000 to $500,000 per affected system when non-compliance surfaces during detailed engineering.
Where Do Cost Overruns Most Commonly Originate in Industrial Site Development?
Cost overruns most commonly originate at the FEED-to-detailed-engineering transition. When FEED deliverables are incomplete, whether through missing datasheets, unresolved P&ID holds, or vague control narratives, detailed engineering teams fill gaps with assumptions. When correct information surfaces months later, the resulting changes trigger rework across multiple packages simultaneously. On projects with poor front-end definition, 30 to 50 percent of detailed engineering hours can be consumed by rework rather than new production.
CII research across 1,000-plus capital projects confirms that well-defined front-end planning reduces total project cost by 20 percent and schedule duration by 39 percent. These benchmarks are drawn predominantly from U.S. projects; Canadian project teams should validate cost and schedule impacts against local conditions, though the relationship between front-end definition and project outcomes is well established across jurisdictions. The pattern holds: invest in front-end loading and integrated engineering, or pay multiples in rework and schedule recovery.
Conclusion
The industrial site development process is an interconnected lifecycle where each phase determines the success of every phase that follows. Two principles stand above the rest: invest in FEED, where minimum spend determines maximum cost outcomes, and maintain integrated multi-discipline coordination throughout the lifecycle, because information silos drive the rework that plagues poorly defined projects.
When should an owner/operator engage an integrated engineering partner?
During pre-FEED, before FEED begins. Engaging during pre-FEED allows the engineering partner to establish the design basis, define discipline interfaces, and set up data management from the start. Waiting until FEED means the first months are spent doing pre-FEED work at FEED prices with a FEED-sized team.
If you are evaluating an upcoming capital project, the highest-impact decisions happen early. Engage an integrated engineering partner during feasibility or pre-FEED, not after FEED is underway. Insist on a thorough design basis before committing to detailed engineering. Establish a data-centric execution model from the start. These decisions, made before 80 percent of capital is committed, have the greatest influence on total project cost and commissioning success.
Vista Projects delivers integrated multi-discipline engineering and system integration services across 13 energy markets, from feasibility studies through commissioning support. To discuss how Vista’s data-centric approach can support your next industrial site development project, contact our team in Calgary, Houston, or Muscat.
Certifications, licensure requirements, and regulatory frameworks change over time and vary by jurisdiction. Cost figures and timelines reflect industry experience at the time of writing and should be verified against current market conditions for project-specific planning. This article reflects Canadian standards and Alberta provincial regulations. For projects in other provinces or jurisdictions, verify current requirements with the appropriate authority having jurisdiction.
source https://www.vistaprojects.com/industrial-site-development-process/
source https://vistaprojects2.blogspot.com/2026/02/the-industrial-site-development-process.html