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

 DACE Labour Norms Team
Page & Nations &
DACE Labour Norms
 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
• The Dutch Network of Cost Engineers and
DACE Labour Norms Value Managers
Future

Conclusion
• 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
• Initiative by major companies to make
DACE Labour Norms global accepted standards for Labour
Future Norms
Conclusion

• Improve communication between clients

and suppliers
Agenda

DACE

DACE Labour Norms

Labour Norms &

Unit-Rates Definition of a Labour Norm:
Page & Nations

Page & Nations & • “A number of hours for an activity per

DACE Labour Norms

DACE Labour Norms

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

Future This makes it more usable for different

Conclusion
industries and practices.
Agenda

DACE

DACE Labour Norms

Labour Norms &

Unit-Rates
Page & Nations
Page & Nations

Page & Nations &

• Based on time and method studies in the US,
DACE Labour Norms
ranging in cost from $ 1,000,000 to $ 5,000,000.
DACE Labour Norms

Future • Strictly for estimating direct Labour in man-hours.

Conclusion
• 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 Description Page & Nations DACE Labour Norms
Page & Nations & Same approach for all disciplines
DACE Labour Norms
++ ++
Completeness ++ +
DACE Labour Norms
Definition of Preambles + ++
Future
Definition of Qualifications - ++
Conclusion
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
DACE labour Norms Team
Page & Nations

Page & Nations &

DACE labour Norms
• How to Proceed?
DACE labour Norms
• Next Release
Future

Conclusion
 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
Conclusion
Page & Nations

Page & Nations &

• DACE succeeded in its primary goal to reduce
DACE labour Norms
misunderstanding and dispute between clients and
DACE labour Norms
suppliers and created a common understanding of
Future
used practices and standards
Conclusion

• 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