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Capital Project Management<br />

Reduce Risk Over Project Life Cycle<br />

Title<br />

Stage<br />

Gate<br />

Activity<br />

Needed<br />

Funds<br />

Engineering<br />

Completion<br />

Contingency<br />

Required<br />

Porch<br />

Gat te 0 – Th he Front<br />

Stage 1 Stage 2 Stage 3 Stage 4<br />

Project Options Project<br />

Screening Selection Refinement<br />

Conceptual<br />

Study<br />

Ga ate 1<br />

Feasibility<br />

Study<br />

Ga ate 2<br />

Engineering<br />

Study<br />

Up to 0.1% Up to 0.5% Up to 1.5%<br />

Ga ate 3<br />

Execution<br />

Detailed Eng.<br />

& Construction<br />

100% of<br />

Engineering Value<br />

0-5% 5-20% 30-40% 50-100%<br />

30-50% 15-20% 10-15%<br />

• Risk managed process from business plan to start-up (Stage 1 – Stage 4)<br />

• Approval stage gates across the project life cycle (Gate 0 – Gate 3)<br />

• Owner reviews deliverables at each gate; management can modify / stop project<br />

• Project funding is tightly managed<br />

31

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