dace labor productivity norms – the new “gulf coast”? martin s. j. van vliet

DACE Labor Productivity Norms – The New “Gulf Coast”?

Martin S. J. van Vliet

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Author Biography

• Degree:– Civil Engineer

• University:– Spectrum College

• Years of Experience:– As a Cost Engineer and a Sales Engineer with over 17 years of experience in the field of cost

estimating and in several other aspects of cost engineering.

• Professional Field:– Member of the DACE – Chairman of DACE Labor Productivity Norms Workgroup– Team leader for planning, budgeting, contracting, cost estimating and management reporting

for the services department. Software implementations and development and perform functional and technical specifications, requirement assessments, give training on the job and do presentations and showcases.

• Something you do not know about me:– I like the international cuisine, cooking and wine tastings.

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DACE Labor Productivity Norms the new “Gulf Coast”?

Agenda

DACE

DACE Labor Productivity Norms Team

Page & Nation (“Gulf Coast”)

Page & Nations & DACE Labor Productivity Norms

DACE Labor Productivity Norms

Future

Conclusion

Agenda

DACE


Labor Productivity Norms & Unit-Rates

Page & Nations



Future

Conclusion

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DACE Organization• The Dutch Network of Cost Engineers and Value

Managers• Authoritative Knowledge Centre for Cost

Engineering and Value Management

Agenda

DACE



Page & Nations



Future

Conclusion

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DACE Labor Productivity Norms Team• Initiative by major companies to make global

accepted standards for Labor Productivity Norms

• Improve communication between clients and suppliers

Agenda

DACE



Page & Nations



Future

Conclusion

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Definition of a Labor Productivity Norm:• “A number of hours for an activity per unit of

measurement”

Definition of a Unit-Rate:• “A price per unit of measurement”

Agenda

DACE



Page & Nations



Future

Conclusion

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The difference between a Labor Productivity Norm and a Unit-Rate is that there are no costs involved in a Labor Productivity Norm only hours.

This makes it more usable for different industries and practices.

Agenda

DACE



Page & Nations



Future

Conclusion

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Page & Nations• Based on time and method studies in the US,

ranging in cost from $ 1,000,000 to $ 5,000,000.• Strictly for estimating direct Labor in man-hours.• By carefully analyzing many reports, an average

productivity rate of 70% is established. The Labor hours or percentages compiled are based on this percentage.

Agenda

DACE



Page & Nations



Future

Conclusion

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Agenda

DACE



Page & Nations



Future

Conclusion

Page & Nations & DACEDescription Page & Nations DACE Labor Productivity

NormsSame approach for all disciplines ++ ++Completeness ++ +Definition of Preambles + ++Definition of Qualifications - ++Description of the productivity ++ ++Productivity included in Labor Rate -- ++Definition of Indirect costs -- ++Measuring methods -- ++

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• Based on Labor Productivity Norms

• Bundled in one harmonized format

• In digital PDF format

• In Dutch and English

• Applicable for the industry in Western Europe

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Contents

• General Qualifications & Preambles• Including

• Definitions, Indirect cost, Overhead, Profit and Risks

• Multipliers• Condition Factors• Etc.

• Composition of direct hours• Composition of Labor rates

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What are conditions for good Labor Productivity Norms?

• General qualifications

• Direct hours definition

• Activity descriptions

• Rates definition

• Productivity definition

• Indirect costs definition

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Composition of Labor Productivity Norms

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Section

Piping

• Steel Piping

• Plastic Piping

• Activity descriptions (mini scopes)

• Diameters up to 48”

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Section

Scaffolding

• Different types of scaffold


• Illustrations

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Section

Painting

• Surface preparation

• Painting application


• Diameters up to 48”

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Section

Electrical & Instrumentation


• Illustrations

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Evaluation

• Definition indirect costs

• Definition Labor rates

• Based on Labor Productivity Norms

• Activities with preambles

• Definition productivity

• Greenfield activities

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Usability

• Cost estimating, Planning and Cost Control

• Tendering and Contracting

• Standardization and World-wide use

• Correct definitions using qualifications and preambles

• Appling Location factors

• Measurement of productivity

• Efficiency evaluation

• Benchmarking

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Agenda

DACE



Page & Nations



Future

Conclusion

DACE Labor Productivity Norms Team• How to Proceed?• Next Release

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Next release

• New disciplines:• Structural Steel• Equipment Installation• Equipment Maintenance• Cold Insulation• Civil

• Improvements existing disciplines

• New calculation examples

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Conclusion• DACE succeeded in its primary goal to reduce

misunderstanding and dispute between clients and suppliers and created a common understanding of used practices and standards

• The ultimate goal remains to become the new Labor Productivity Norms standard for the construction industry

• Globally accepted standard for owners and contractors

Agenda

DACE



Page & Nations



Future

Conclusion

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Questions? ?

dace labor productivity norms – the new “gulf coast”? martin s. j. van vliet

Documents

labor hours

direct labor

average productivity

new gulf coast

page nationsbased

unit of measurement

field of cost estimating

aspects of cost engineering