1. DACE Labor Productivity Norms – The New “Gulf Coast”?
Martin S. J. van Vliet

2. Author Biography Degree: University: Years of Experience:
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.

3. 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
Future
Conclusion
Agenda
DACE
DACE Labor Productivity Norms Team
Page & Nation (“Gulf Coast”)
Page & Nations & DACE Labor Productivity Norms
DACE Labor Productivity Norms
Future
Conclusion

4. 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
Future
Conclusion
DACE Organization
The Dutch Network of Cost Engineers and Value Managers
Authoritative Knowledge Centre for Cost Engineering and Value Management

5. 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
Future
Conclusion
DACE Labor Productivity Norms Team
Initiative by major companies to make global accepted standards for Labor Productivity Norms
Improve communication between clients and suppliers

6. 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
Future
Conclusion
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”

7. 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
Future
Conclusion
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.

8. 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
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 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.

9. 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
Future
Conclusion
Page & Nations & DACE
Description
Page & Nations
DACE Labor Productivity Norms
Same 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

10. DACE Labor Productivity Norms the new “Gulf Coast”?
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

11. 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

12. 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

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

14. DACE Labor Productivity Norms the new “Gulf Coast”?
Section
Piping
Steel Piping
Plastic Piping
Activity descriptions (mini scopes)
Diameters up to 48”

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

16. DACE Labor Productivity Norms the new “Gulf Coast”?
Section
Scaffolding
Different types of scaffold
Activity descriptions (mini scopes)
Illustrations

17. DACE Labor Productivity Norms the new “Gulf Coast”?
Section
Painting
Surface preparation
Painting application
Activity descriptions (mini scopes)
Diameters up to 48”

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

19. DACE Labor Productivity Norms the new “Gulf Coast”?
Section
Electrical & Instrumentation
Activity descriptions (mini scopes)
Illustrations

20. 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

21. 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

22. 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
Future
Conclusion
DACE Labor Productivity Norms Team
How to Proceed?
Next Release

23. 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

24. 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
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 Labor Productivity Norms standard for the construction industry
Globally accepted standard for owners and contractors

25. DACE Labor Productivity Norms the new “Gulf Coast”?
Questions? ?