Integrator Project Lifecycle

The full lifecycle of a large DC automation project ($15M-$80M) runs 8 phases over 18-36 months. Internal names vary by firm (Dematic, Vanderlande, Honeywell Intelligrated) but the phase structure is consistent.

The Eight-Phase Map

Phase	Name	Duration	Key Output
0	Opportunity Qualification / Go/No-Go	2-4 weeks	Internal go/no-go decision
1	Concept Design (Pre-Award)	8-16 weeks	Concept Design Report, ROM pricing
2	Firm Design (Post-Award)	10-20 weeks	BOD, FDS, ICD, Class 1 estimate
3	Detailed Engineering	8-16 weeks	E-sheets, PLC code, fabrication drawings
4	Fabrication and Pre-Build	Variable	FAT, long-lead procurement
5	Site Installation	Variable	Mechanical and electrical complete
6	Commissioning	8-20 weeks	SAT, punch list closure
7	Warranty	12 months post-SAT	Service transition, LSA handoff

Phase 0: Opportunity Qualification

The integrator’s sales team qualifies the opportunity before committing engineering resources. Key criteria: capability fit, capital approval status, competitive landscape, strategic value, current engineering capacity.

Rule: no single project should represent >50% of a year’s target order income. Projects above ~€50M require smaller profitable projects to absorb a single failure. Integrators are more selective than their sales teams admit publicly.

Phase 1: Concept Design (Pre-Award)

Integrator money is at risk — 1-4 Solutions Architects over 8-16 weeks, unpaid if they lose. Output is the Concept Design Report.

The concept package is simultaneously an engineering document and a commercial document. The integrator’s assumptions (throughput, conformance rates, floor layout, interface complexity) are already priced. Wrong assumptions = change orders or margin erosion. No third option.

Phase 2: Firm Design

Primary deliverable: Basis of Design (BOD) — the governing technical specification. Every change order is priced as a delta from the BOD. If the BOD is vague about something, expect a change order when it must be resolved. Make it specific.

Other deliverables: Firm Design Phase covers FDS, ICD, equipment BOM, and integration architecture in detail.

This phase is where the project’s character is set. The Solutions team hands off to the Engineering team — one of the five most dangerous transitions in the lifecycle.

Phase 3: Detailed Engineering

Translates FDS and BOD into fabrication documents. Post-2020, this phase was structurally broken by supply chain lead times.

The post-2020 lead time crisis: Pre-2020, PLCs/VFDs had 8-12 week lead times. By mid-2021: 40-60+ weeks. The Interact Analysis bullwhip effect distorted markets through 2024. Projects planned at 18-month delivery slid to 24-30 months.

New rule: First deliverable in Phase 3 = long-lead procurement list. Issue POs for everything with >20-week lead times before detailed design is finalized. Waiting for design sign-off hands the schedule to the supply chain.

Phase 4: Fabrication and Pre-Build

Factory Acceptance Test (FAT): Governed by IEC 62381:2024. Witnessed, protocolled testing at the manufacturer’s facility before shipment. Covers documentation, dimensional inspection, functional testing of all modes and safety interlocks, I/O point-by-point verification, software logic, and communications.

Punch list categories:

• Category A: Blocks shipment
• Category B: Must be resolved before SAT
• Category C: Minor, agreed resolution date

Factory Integration Test (FIT): IEC 62381:2024 introduced FIT as a fourth stage — testing multi-vendor subsystems together before shipment. For any project with multiple technology vendors (most of them), FIT is not optional.

Cost of defects: Finding at FAT costs 1×. Post-installation costs 10×. Post-go-live costs 50-100×.

Phase 5: Site Installation

Site Lead / Installation Manager manages subcontracted mechanical and electrical trades. Standard sequence: civil readiness → mechanical → electrical infrastructure → controls → punch list closure.

Brownfield projects are significantly harder: the customer cannot vacate, forcing phased construction with three-party negotiation between integrator schedule, customer operations, and general contractor access.

Phase 6: Commissioning

Stages: cold commissioning (no product) → warm commissioning / wet run → parallel operation → cutover → performance verification.

SAT (Site Acceptance Test): Minimum 72-168 hours continuous run at production load. Unplanned stops reset the clock. Throughput must achieve ≥95% of contracted rate. SAT triggers the final major payment milestone (typically 10% of contract value).

Phase 7: Warranty

12 months from SAT acceptance. Standard terms. The commissioning team disperses; the service team inherits the system.

Knowledge transfer from commissioning to service is the most consistently underdone activity — and the one operators most regret when it’s done poorly.

After warranty: multi-year Lifecycle Services Agreement (LSA) or Maintenance Service Contract (MSC). Both Dematic and Honeywell Intelligrated explicitly manage aftermarket as a strategic recurring revenue line.

Milestone Billing Structure (Typical $15-40M Project)

Typical split: 10/10/15/20/15/10/10/10 across phases. The integrator’s primary leverage is completing commissioning to release the SAT milestone and retainage. Customer’s leverage: retainage released at warranty expiration (not just SAT) is stronger protection.

Source: 2.6-advanced-automation-design