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

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.

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

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

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

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”

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.

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.

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

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

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

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

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

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

DACE Labor Productivity Norms the new “Gulf Coast”?

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

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

DACE Labor Productivity Norms the new “Gulf Coast”?

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

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

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

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

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

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

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