R-33: Project Closeout Report
Closeout Date: 28 Feb 2026
Project Closeout Report
Hawthorn Valley Refinery — CDU-4 Revamp & Capacity Expansion — Final Closeout Summary
ProjectHawthorn Valley Refinery — CDU-4 Revamp
ClientPacific Petroleum Group
ContractorTechPro Industrial Projects
Original Completion19 Dec 2025
Actual Completion30 Jan 2026
Closeout Date28 Feb 2026
Schedule Variance
+42d
6 weeks late — Final SPI: 0.94
Cost Variance
−$2.1M
Under budget — Final CPI: 1.06
Final Cost (EAC)
$31.9M
BAC was $34.0M
Milestones Met
18/22
81.8% on-time milestone rate
Safety
0
LTI — 462,000 person-hours
Final Schedule Performance
Planned Start 03 Mar 2024
Actual Start 04 Mar 2024 (+1d)
Planned Mechanical Completion 05 Dec 2025
Actual Mechanical Completion 16 Jan 2026 (+42d)
Planned System Handover 19 Dec 2025
Actual System Handover 30 Jan 2026 (+42d)
Total Duration (Planned) 22 months
Total Duration (Actual) 24 months
Final SPI 0.94
Schedule Delay Driver Exchanger bundle rework (26d)
Final Cost Performance
Original Budget (BAC) $34,000,000
Approved Changes (PCOs) +$1,240,000
Budget at Completion (BAC adj.) $35,240,000
Actual Cost (AC Final) $31,890,000
Cost Variance (CV) −$2,110,000 (under budget)
Cost Performance Index (CPI) 1.06
Savings vs. Original BAC $2,110,000
Underspend Driver Scaffolding optimisation
Contingency Used $0 of $1,700,000 (0%)
Final S-Curve — Planned vs. Actual vs. Earned Value
100%
75%
50%
25%
0%
Actual Completion
BCWS — Planned Value (PV)
ACWP — Actual Cost (AC) — Final: $31.89M
BCWP — Earned Value (EV) — All three converge at 100%
All three S-curve lines converge at project completion (100% / $31.89M actual), confirming clean project closeout. Slight delay in EV uptake vs. PV in months 14–18 corresponds to exchanger bundle rework period.
Milestone Compliance Summary
Milestone Type Baseline Date Actual Date Variance Status
Engineering Complete — Process Engineering 30 May 2024 02 Jun 2024 +3d On-Time
Procurement — Long-Lead Items PO Issued Procurement 15 Jun 2024 15 Jun 2024 0d On-Time
HAZOP Study — Complete Safety 01 Aug 2024 28 Jul 2024 −4d Early
Site Mobilisation Complete Construction 15 Aug 2024 15 Aug 2024 0d On-Time
Civil Foundations — Complete Construction 30 Nov 2024 15 Dec 2024 +15d Late
Mechanical Equipment Set — Complete Construction 28 Feb 2025 10 Mar 2025 +10d Late
Exchanger Bundle Replacement — Complete Construction 15 Apr 2025 28 May 2025 +43d Significantly Late
Piping Pressure Test — Complete Testing 01 Oct 2025 04 Oct 2025 +3d On-Time
DCS Integration — Functional Test — Complete Testing 01 Nov 2025 12 Nov 2025 +11d Late
Mechanical Completion Certificate Contractual 05 Dec 2025 16 Jan 2026 +42d Significantly Late
Final Commissioning — Handover to Operations Contractual 19 Dec 2025 30 Jan 2026 +42d Significantly Late
18 of 22 milestones met on time (81.8%). 4 milestones late — all related to exchanger bundle rework cascade starting Apr 2025.
Budget Waterfall — Original to Final Actual
$34.0M
Original
Budget
+$0.82M
PCO-001
Scope Add.
+$0.42M
PCO-002
Misc.
$35.24M
Revised
BAC
−$1.12M
Scaffolding
Saving
−$0.99M
Labour
Efficiency
$31.89M
Final
Actual
Scaffolding optimisation (introduction of suspended work platforms) and improved labour efficiency in insulation works drove the $2.11M underrun vs. revised BAC.
Key Events Timeline
04 Mar 2024
Project Mobilisation — On Time
All site services established. First concrete poured 11 Mar 2024.
15 Jun 2024
Long-Lead Orders Placed
Heat exchanger bundles (Italy vendor), compressor (Germany) ordered on schedule.
12 Apr 2025
Exchanger Bundle Non-Conformance Identified
Tube-to-tubesheet weld defects found on 3 of 6 bundles. Factory rework authorised. +26d impact to CP.
28 May 2025
Exchanger Bundle Rework Complete — 43d Late
All bundles re-inspected and accepted. CP delay propagated to MC and handover.
01 Oct 2025
Piping Pressure Tests Passed — All Systems
Zero test failures across 847 piping systems. Excellent quality outcome.
16 Jan 2026
Mechanical Completion Certificate Issued
42 days late vs. contractual date. No liquidated damages — Force Majeure accepted by client.
30 Jan 2026
System Handover to Operations — Complete
CDU-4 production capacity confirmed at 110% of design. All punch list items cleared.
28 Feb 2026
Final Account Agreed — Project Closed
Final cost $31.89M. $2.11M below revised BAC. All invoices settled. Archive complete.
Lessons Learned — Categorised
Engineering / Procurement
Vendor inspection at exchanger tube fabrication should be mandatory hold point — not merely a witness point — for all process-critical heat exchangers. Factory acceptance costs ~$15K but prevented a potential $420K rework + delay cost.
Long-lead item risk assessment should assign dedicated supply chain resource for monthly vendor factory visits during fabrication period, not just at FAT stage.
Design freeze for exchanger nozzle orientation was achieved 6 weeks later than planned — earlier engagement with operations team would have avoided one PCO.
Schedule Planning
The original schedule had zero float between exchanger bundle arrival and mechanical completion. A 15-day float buffer on all single-source long-lead items should be built into base schedule at Rev 0.
DCS integration testing was sequenced too tightly after instrumentation installation — a 2-week minimum gap for loop checking would prevent compression in the commissioning phase.
Positive Learnings
The suspended work platform system for scaffolding reduced scaffold erection/dismantling labour by 38% and eliminated 9 scaffold-related safety incidents compared to prior refinery turnaround. This approach should be mandated on all future hydrocarbon facilities.
Piping pressure test campaign (zero failures) was attributable to the pre-test quality verification checklist introduced by the QA Manager in August 2025. This checklist should be standardised across the portfolio.
Project achieved 462,000 person-hours LTI-free — the longest LTI-free run in TechPro's refinery division. The hand-in-hand HSE program with the client's safety team was instrumental.
Cost Management
Early agreement with client on PCO unit rates (prior to execution) eliminated all cost disputes and enabled rapid PCO approval. This commercial pre-agreement approach should be replicated in all future EPC contracts.