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
DACE Labor Productivity Norms
Labor Productivity Norms & Unit-Rates
Page & Nations
Page & Nations & DACE Labor Productivity Norms
DACE Labor Productivity Norms
Future
Conclusion
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DACE Labor Productivity Norms the new “Gulf Coast”?
DACE Organization• The Dutch Network of Cost Engineers and Value
Managers• Authoritative Knowledge Centre for Cost
Engineering and Value Management
Agenda
DACE
DACE Labor Productivity Norms
Labor Productivity Norms & Unit-Rates
Page & Nations
Page & Nations & DACE Labor Productivity Norms
DACE Labor Productivity Norms
Future
Conclusion
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DACE Labor Productivity Norms the new “Gulf Coast”?
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
DACE Labor Productivity Norms
Labor Productivity Norms & Unit-Rates
Page & Nations
Page & Nations & DACE Labor Productivity Norms
DACE Labor Productivity Norms
Future
Conclusion
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DACE Labor Productivity Norms the new “Gulf Coast”?
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
DACE Labor Productivity Norms
Labor Productivity Norms & Unit-Rates
Page & Nations
Page & Nations & DACE Labor Productivity Norms
DACE Labor Productivity Norms
Future
Conclusion
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DACE Labor Productivity Norms the new “Gulf Coast”?
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
DACE Labor Productivity Norms
Labor Productivity Norms & Unit-Rates
Page & Nations
Page & Nations & DACE Labor Productivity Norms
DACE Labor Productivity Norms
Future
Conclusion
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DACE Labor Productivity Norms the new “Gulf Coast”?
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
DACE Labor Productivity Norms
Labor Productivity Norms & Unit-Rates
Page & Nations
Page & Nations & DACE Labor Productivity Norms
DACE Labor Productivity Norms
Future
Conclusion
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DACE Labor Productivity Norms the new “Gulf Coast”?
Agenda
DACE
DACE Labor Productivity Norms
Labor Productivity Norms & Unit-Rates
Page & Nations
Page & Nations & DACE Labor Productivity Norms
DACE Labor Productivity Norms
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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DACE Labor Productivity Norms the new “Gulf Coast”?
DACE Labor Productivity Norms
• 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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DACE Labor Productivity Norms the new “Gulf Coast”?
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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DACE Labor Productivity Norms the new “Gulf Coast”?
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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DACE Labor Productivity Norms the new “Gulf Coast”?
Composition of Labor Productivity Norms
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DACE Labor Productivity Norms the new “Gulf Coast”?
Section
Piping
• Steel Piping
• Plastic Piping
• Activity descriptions (mini scopes)
• Diameters up to 48”
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DACE Labor Productivity Norms the new “Gulf Coast”?
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DACE Labor Productivity Norms the new “Gulf Coast”?
Section
Scaffolding
• Different types of scaffold
• Activity descriptions (mini scopes)
• Illustrations
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DACE Labor Productivity Norms the new “Gulf Coast”?
Section
Painting
• Surface preparation
• Painting application
• Activity descriptions (mini scopes)
• Diameters up to 48”
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DACE Labor Productivity Norms the new “Gulf Coast”?
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DACE Labor Productivity Norms the new “Gulf Coast”?
Section
Electrical & Instrumentation
• Activity descriptions (mini scopes)
• Illustrations
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DACE Labor Productivity Norms the new “Gulf Coast”?
Evaluation
• Definition indirect costs
• Definition Labor rates
• Based on Labor Productivity Norms
• Activities with preambles
• Definition productivity
• Greenfield activities
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DACE Labor Productivity Norms the new “Gulf Coast”?
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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DACE Labor Productivity Norms the new “Gulf Coast”?
Agenda
DACE
DACE Labor Productivity Norms
Labor Productivity Norms & Unit-Rates
Page & Nations
Page & Nations & DACE Labor Productivity Norms
DACE Labor Productivity Norms
Future
Conclusion
DACE Labor Productivity Norms Team• How to Proceed?• Next Release
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DACE Labor Productivity Norms the new “Gulf Coast”?
Next release
• New disciplines:• Structural Steel• Equipment Installation• Equipment Maintenance• Cold Insulation• Civil
• Improvements existing disciplines
• New calculation examples
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DACE Labor Productivity Norms the new “Gulf Coast”?
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
DACE Labor Productivity Norms
Labor Productivity Norms & Unit-Rates
Page & Nations
Page & Nations & DACE Labor Productivity Norms
DACE Labor Productivity Norms
Future
Conclusion
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DACE Labor Productivity Norms the new “Gulf Coast”?
Questions? ?