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DACE_Labour_Productivity_Norms_The_New_Gulf_Coast

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  • pg 1
									        DACE Labor Productivity Norms –
            The New “Gulf Coast”?



Martin S. J. van Vliet
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.



                                                                                                      2
 DACE Labor Productivity Norms the new “Gulf Coast”?

Agenda
                      Agenda
DACE

DACE Labor
Productivity Norms
                      DACE
Labor Productivity
Norms & Unit-Rates
                      DACE Labor Productivity Norms Team
Page & Nations

Page & Nations &
DACE Labor
                      Page & Nation (“Gulf Coast”)
Productivity Norms

DACE Labor
Productivity Norms
                      Page & Nations & DACE Labor Productivity Norms
Future

Conclusion
                      DACE Labor Productivity Norms

                      Future

                      Conclusion

                                                                        3
 DACE Labor Productivity Norms the new “Gulf Coast”?

Agenda

DACE

DACE Labor
Productivity Norms

Labor Productivity
                     DACE Organization
Norms & Unit-Rates

Page & Nations
                     • The Dutch Network of Cost Engineers and Value
Page & Nations &
DACE Labor             Managers
Productivity Norms

DACE Labor
Productivity Norms
                     • Authoritative Knowledge Centre for Cost
Future
                       Engineering and Value Management
Conclusion




                                                                   4
 DACE Labor Productivity Norms the new “Gulf Coast”?

Agenda

DACE

DACE Labor
Productivity Norms
                     DACE Labor Productivity
Labor Productivity
Norms & Unit-Rates
                     Norms Team
Page & Nations
                     • Initiative by major companies to make global
Page & Nations &
DACE Labor             accepted standards for Labor Productivity
Productivity Norms

DACE Labor
                       Norms
Productivity Norms

Future
                     • Improve communication between clients and
Conclusion             suppliers




                                                                      5
 DACE Labor Productivity Norms the new “Gulf Coast”?

Agenda

DACE

DACE Labor
Productivity Norms

Labor Productivity   Definition of a Labor Productivity Norm:
Norms & Unit-Rates

Page & Nations       • “A number of hours for an activity per unit of
Page & Nations &
DACE Labor
                       measurement”
Productivity Norms

DACE Labor
Productivity Norms

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



                                                                        6
 DACE Labor Productivity Norms the new “Gulf Coast”?

Agenda

DACE

DACE Labor
Productivity Norms

Labor Productivity
Norms & Unit-Rates
                     The difference between a Labor
Page & Nations       Productivity Norm and a Unit-Rate is that
Page & Nations &
DACE Labor
                     there are no costs involved in a Labor
Productivity Norms

DACE Labor
                     Productivity Norm only hours.
Productivity Norms

Future               This makes it more usable for different
Conclusion           industries and practices.



                                                                 7
 DACE Labor Productivity Norms the new “Gulf Coast”?

Agenda

DACE

DACE Labor
Productivity Norms

Labor Productivity
                     Page & Nations
Norms & Unit-Rates

Page & Nations
                     • Based on time and method studies in the US,
Page & Nations &
DACE Labor             ranging in cost from $ 1,000,000 to $ 5,000,000.
Productivity Norms

DACE Labor           • Strictly for estimating direct Labor in man-hours.
Productivity Norms

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


                                                                            8
 DACE Labor Productivity Norms the new “Gulf Coast”?

Agenda

DACE

DACE Labor
Productivity Norms

Labor Productivity
                     Page & Nations & DACE
Norms & Unit-Rates
                                         Description       Page & Nations   DACE Labor Productivity
Page & Nations                                                                      Norms
                     Same approach for all disciplines          ++                   ++
Page & Nations &
DACE Labor           Completeness
Productivity Norms
                                                                ++                    +
                     Definition of Preambles                     +                   ++
DACE Labor
Productivity Norms   Definition of Qualifications                -                   ++
Future               Description of the productivity            ++                   ++
Conclusion           Productivity included in Labor Rate         --                  ++
                     Definition of Indirect costs                --                  ++
                     Measuring methods                           --                  ++




                                                                                                      9
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




                                                       10
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




                                                             11
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




                                                                                          12
DACE Labor Productivity Norms the new “Gulf Coast”?

           Composition of Labor Productivity Norms




                                                      13
DACE Labor Productivity Norms the new “Gulf Coast”?




         Section

       Piping
           • Steel Piping
           • Plastic Piping
           • Activity descriptions (mini scopes)
           • Diameters up to 48”




                                                      14
DACE Labor Productivity Norms the new “Gulf Coast”?




                                                      15
DACE Labor Productivity Norms the new “Gulf Coast”?




         Section

       Scaffolding
           • Different types of scaffold
           • Activity descriptions (mini scopes)
           • Illustrations




                                                      16
DACE Labor Productivity Norms the new “Gulf Coast”?




         Section

       Painting
           • Surface preparation
           • Painting application
           • Activity descriptions (mini scopes)
           • Diameters up to 48”




                                                      17
DACE Labor Productivity Norms the new “Gulf Coast”?




                                                      18
DACE Labor Productivity Norms the new “Gulf Coast”?




         Section

       Electrical & Instrumentation
           • Activity descriptions (mini scopes)
           • Illustrations




                                                      19
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


                                                      20
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

                                                                        21
 DACE Labor Productivity Norms the new “Gulf Coast”?

Agenda

DACE

DACE Labor
Productivity Norms
                     DACE Labor Productivity
Labor Productivity
Norms & Unit-Rates
                     Norms Team
Page & Nations

Page & Nations &
                     • How to Proceed?
DACE Labor
Productivity Norms
                     • Next Release
DACE Labor
Productivity Norms

Future

Conclusion




                                                       22
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


                                                      23
 DACE Labor Productivity Norms the new “Gulf Coast”?

Agenda

DACE

DACE Labor
                     Conclusion
Productivity Norms

Labor Productivity
Norms & Unit-Rates   • DACE succeeded in its primary goal to reduce
Page & Nations         misunderstanding and dispute between clients and
Page & Nations &
DACE Labor
                       suppliers and created a common understanding of
Productivity Norms
                       used practices and standards
DACE Labor
Productivity Norms
                     • The ultimate goal remains to become the new Labor
Future
                       Productivity Norms standard for the construction
Conclusion
                       industry
                     • Globally accepted standard for owners and
                       contractors

                                                                      24
DACE Labor Productivity Norms the new “Gulf Coast”?




                   Questions? ?




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