The Association of Cost Engineers

ACOSTE CONFERENCE 2011

50th Anniversary

www.acoste.org

DACE Labour Norms the new Gulf Coast?

Martin van Vliet

Member of the DACE

Chairman of DACE Labour Norms Workgroup

Agenda

DACE

DACE Labour Norms Team

Page & Nation (Gulf Coast)

Page & Nations & DACE Labour Norms

DACE Labour Norms

Future

Conclusion

Agenda DACE DACE Labour Norms Labour Norms & Unit-Rates Page & Nations Page & Nations & DACE Labour Norms DACE Labour Norms Future Conclusion

DACE Organization

The Dutch Network of Cost Engineers and Value Managers

Authoritative Knowledge Centre for Cost Engineering and Value Management

Agenda DACE DACE Labour Norms Labour Norms & Unit-Rates Page & Nations Page & Nations & DACE Labour Norms DACE Labour Norms Future Conclusion

DACE Labour Norms Team

Initiative by major companies to make global accepted standards for Labour Norms

Improve communication between clients and suppliers

Agenda DACE DACE Labour Norms Labour Norms & Unit-Rates Page & Nations Page & Nations & DACE Labour Norms DACE Labour Norms Future Conclusion

Definition of a Labour 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 Labour Norms Labour Norms & Unit-Rates Page & Nations Page & Nations & DACE Labour Norms DACE Labour Norms Future Conclusion

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

This makes it more usable for different industries and practices.

Agenda DACE DACE Labour Norms Labour Norms & Unit-Rates Page & Nations Page & Nations & DACE Labour Norms DACE Labour Norms Future Conclusion

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 Labour in man-hours.

By carefully analyzing many reports, an average productivity rate of 70% is established. The labour hours or percentages compiled are based on this percentage.

Agenda DACE DACE Labour Norms Labour Norms & Unit-Rates Page & Nations Page & Nations & DACE Labour Norms DACE Labour Norms Future Conclusion

Agenda DACE DACE Labour Norms Labour Norms & Unit-Rates Page & Nations Page & Nations & DACE Labour Norms DACE Labour Norms Future Conclusion

Page & Nations & DACE Description Page & Nations DACE Labour Norms

Same approach for all disciplines ++ ++

Completeness ++ +

Definition of Preambles + ++

Definition of Qualifications - ++

Description of the productivity ++ ++

Productivity included in Labour Rate -- ++

Definition of Indirect costs -- ++

Measuring methods -- ++

DACE Labour Norms

Based on Labour Norms

Bundled in one harmonized format

In digital PDF format

In Dutch and English

Applicable for the industry in Western Europe

Contents

General Qualifications & Preambles

Including Definitions, Indirect cost, Overhead,

Profit and Risks Multipliers Condition Factors Etc.

Composition of direct hours

Composition of Labour rates

What are conditions for good Labour Norms?

General qualifications

Direct hours definition

Activity descriptions

Rates definition

Productivity definition

Indirect costs definition

Composition of Labour Norms

Section

Piping

Steel Piping

Plastic Piping

Activity descriptions (mini scopes)

Diameters up to 48

Section

Scaffolding

Different types of scaffold

Activity descriptions (mini scopes)

Illustrations

Section

Painting

Surface preparation

Painting application

Activity descriptions (mini scopes)

Diameters up to 48

Section

Electrical & Instrumentation

Activity descriptions (mini scopes)

Illustrations

Evaluation

Definition indirect costs

Definition labour rates

Based on labour Norms

Activities with preambles

Definition productivity

Greenfield activities

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

Agenda DACE DACE labour Norms labour Norms & Unit-Rates Page & Nations Page & Nations & DACE labour Norms DACE labour Norms Future Conclusion

DACE labour Norms Team

How to Proceed?

Next Release

Next release

New disciplines:

Structural Steel Equipment Installation Equipment Maintenance Cold Insulation Civil

Improvements existing disciplines

New calculation examples

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 labour Norms standard for the construction industry

Globally accepted standard for owners and contractors

Agenda DACE DACE labour Norms labour Norms & Unit-Rates Page & Nations Page & Nations & DACE labour Norms DACE labour Norms Future Conclusion

Thanks

DACE

PO Box 1058 3860 BB Nijkerk

The Netherlands

Telephone : +31(0)33 - 247 34 55

www.acoste.org

The Association of Cost Engineers