The Lap Joint key name (and the respective QP method) has been designed to allow automatic placing of specific components typically to predefined points connecting fittings and pipes.
Such components usually fasten the connection of two adjacent fittings or pipes. It could be e.g. union nuts, assemblies of union flanges with fasteners, or other joining components.
A lap joint component must have a pair of INPUT_POINT and OUTPUT_POINT coordinate systems and corresponding OUTPUT_AXIS.
The other necessary condition is that CSInfo of the OUTPUT_POINT coordinate system must have set End Treatment to value of 8 (Lap Joint).
Lap Joint:
A component with the above mentioned specifics (and key name of Lap Joint set within the respective pipe specification) is automatically placed to those positions on the pipeline where is found an OUTPUT_POINT coordinate system with lap joint End Treatment (ET=8) specified in CSInfo.
The component is placed that both coordinate systems with ET=8 have the same position.
Flange Lap Joint:
See information about tapping point here.
The proper coordinate systems and axes as well as the CSInfo can be created easily using Coordinate System Wizard.