Cleopatra Enterprise and DACE Labour Norms

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During 2008, a Special Interest Group was formed out of cost engineers from the process
industry representatives to pick-up the challenge to establish a globally accepted standard for labor
productivity norms for the industry. In February 2009, the Dutch Association of Cost Engineers (DACE)
published a CD-ROM that provides guidance in the use of labor productivity norms for many of the
disciplines which are involved in the construction and maintenance of industrial production facilities.

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Cleopatra Enterprise and DACE Labour Norms

  1. 1. Cost Engineering Knowledgebases
  2. 2. Cost Engineering Knowledgebases > Cost Engineering Knowledgebases contain the  cost assemblies based on DACE > Each assembly is built up of details for material,  labour and rental > Multi‐disciplinary (piping, E&I, Equipment, Civil,  etc.) > Allows for fast estimating, while maintaining the  details > Based on detailed data qualifications > Quick‐reference card >www.costengineering.eu
  3. 3. Cost Assembly www.costengineering.eu
  4. 4. Unit-Rate > General description > Direct hours > Activity > Rate > Productivity > Indirect >www.costengineering.eu
  5. 5. DACE Publication 6
  6. 6. Standardisation of “Labour norms” > Initiative of the DACE workgroup > Improve communication between  involved parties > Avoid discussion by definitions > Evolved from Linde’s dataset www.costengineering.eu
  7. 7. Data Qualifications > Direct labour norms: activity description > Only hours, no pricing or rates > Definition of indirect costs > Composition of labour rates > Applicable factors  > Europe www.costengineering.eu
  8. 8. Data Qualifications
  9. 9. Construction of the hourly rate The hourly rate included: > The direct costs of the relevant staff till the range or  position of the cooperating foreman, including payroll  tax, social security, holiday pay, holidays, ATV days as  well as health insurance, accident and pension  insurance, profit, bonuses, transport costs, travel time,  normal travel expenses  commuter traffic and all further  indirect costs. > The costs for the use of normal hand tools and  protective clothing. > The costs for the use personal safety, such as safety  shoes, helmets, safety glass, gloves and work clothing
  10. 10. Productivity / efficiency
  11. 11. Productivity Definition > Labour productivity is a relative measure for the labour  efficiency against a norm has been established based on  experience. It is a common misconception that labour  productivity really means “working hard”. > Labour productivity is a function based on a number of specific  variables such as the organisation, the equipment and the  motivation of the people involved.
  12. 12. Productivity / efficiency, Bedaux
  13. 13. Productivity Specific site conditions > Material costs have a tendency to be 5‐10% higher on a  renovation project than in greenfield development. > Man hours can be 10‐50% higher and  detail engineering can be  about 50% higher. > The unexpected cost is also in need of a much higher  percentage.
  14. 14. Cost Engineering Knowledgebases 15

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