ACOSTE CONFERENCE 2011
50th Anniversary
DACE Labour Norms the new Gulf Coast?
Martin van Vliet
Member of the DACE
Chairman of DACE Labour Norms Workgroup
www.acoste.org
The Association of Cost Engineers
Agenda
 Agenda
DACE
DACE Labour Norms
 DACE
Labour Norms &
Unit-Rates
Page & Nations
Page & Nations &
DACE Labour Norms
 DACE Labour Norms Team
 Page & Nation (“Gulf Coast”)
DACE Labour Norms
Future
 Page & Nations & DACE Labour Norms
Conclusion
 DACE Labour Norms
 Future
 Conclusion
Agenda
DACE
DACE Labour Norms
Labour Norms &
Unit-Rates
DACE Organization
Page & Nations
Page & Nations &
DACE Labour Norms
DACE Labour Norms
Future
Conclusion
• 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
DACE Labour Norms Team
Page & Nations
Page & Nations &
DACE Labour Norms
DACE Labour Norms
Future
Conclusion
• 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
Definition of a Labour Norm:
• “A number of hours for an activity per
unit of measurement”
Future
Conclusion
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
The difference between a Labour Norm and
a Unit-Rate is that there are no costs
involved in a Labour Norm only hours.
DACE Labour Norms
Future
Conclusion
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
Page & Nations
• Based on time and method studies in the US,
ranging in cost from $ 1,000,000 to $ 5,000,000.
DACE Labour Norms
Future
Conclusion
• 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 & DACE
Page & Nations
Page & Nations &
DACE Labour Norms
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
Future
Conclusion
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
DACE labour Norms Team
Page & Nations
Page & Nations &
DACE labour Norms
DACE labour Norms
Future
Conclusion
• How to Proceed?
• Next Release
Next release
• New disciplines:
• Structural Steel
• Equipment Installation
• Equipment Maintenance
• Cold Insulation
• Civil
• Improvements existing disciplines
• New calculation examples
Agenda
DACE
DACE labour Norms
labour Norms &
Unit-Rates
Page & Nations
Page & Nations &
DACE labour Norms
DACE labour Norms
Future
Conclusion
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
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