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21979
21979
Abstract: During 2008, a Special Interest Group was formed out of cost engineers the development of any labor
from the process industry representatives to pick-up the challenge to establish a productivity norm standards; and
globally accepted standard for labor productivity norms for the industry. In Feb- proposes that the DACE labor
ruary 2009, the Dutch Association of Cost Engineers (DACE) published a CD-ROM productivity norms, as an available,
that provides guidance in the use of labor productivity norms for many of the dis- published and comprehensive guideline,
ciplines which are involved in the construction and maintenance of industrial pro- may become the new labor productivity
duction facilities. This article will provide information on the level of information norm standards for the construction
that should be provided for in the development of any labor productivity norm industries supporting industrial
standards; and proposes that the DACE labor productivity norms, as an available production facilities.
published guideline, may become the new “Gulf Coast” labor productivity norm This article contains examples and
standards for the construction industries. This article was first presented as
extracts from the complete publication by
EST.517 at the 2011 Annual Meeting.
the DACE, and will provide sufficient
Key Words: Cost engineers, labor productivity, process industry, and standards information to allow you to obtain a
general impression and the added value
of this initiative.
D
uring 2008, a Special Interest productivity norm. By definition, each
Group (SIG) was formed out labor productivity norm is a typical or THE USABILITY OF LABOR PRODUCTIVITY
of cost engineering process average number of labor hours required
NORMS AND UNIT-RATES
industry representatives to by the collection of all individuals (i.e.,
pick-up the challenge to establish a crew) associated with the construction
Definition of a labor Productivity Norm
globally accepted standard for labor activity. For simplicity, we define a labor
A labor productivity norm is the
productivity norms for the industry. In productivity norm as, “a number of hours
number of labor hours (work effort)
February 2009, the Dutch Association of for an activity per unit of measurement.”
required to complete a defined
Cost Engineers (DACE), published a CD- The published DACE labor
construction activity, given the specific
ROM that provides guidance in the use of productivity norms provide consideration
qualifications associated with each
labor productivity norms for many of the to activity descriptions, qualifications,
individual labor productivity norm.
disciplines which are involved in the location factors, indirect costs,
By definition, each labor productivity
construction and maintenance of overheads, profit and risk, condition and
norm is a typical or average number of
industrial production facilities. efficiency factors associated with each of
labor hours required by the collection of
For the purposes of this article, a the thousands of individual labor
all individuals (i.e., crew) associated with
labor productivity norm is the number of productivity norms with the intent of
the construction activity. For simplicity,
labor hours (work effort) required to providing clarity to each one.
we define a labor productivity norm as “a
complete a defined construction activity,
number of hours for an activity per unit of
given the specific qualifications This article will provide information
measurement.”
associated with each individual labor on the level that should be provided for in
Figure 2 — An Overview of How the Direct Hours, Direct Labor Costs and Indirect Costs are Applied and the Total Costs are
Derived
Note that all the examples use the norms can be applied in a cost estimate
European nomenclature (the comma using a drawing and scope of work. • conserve energy by reducing heat
separates the decimal). loss or gain;
Insulation • control surface temperatures for
Piping Next, let’s look at descriptions for personnel protection and comfort;
This section includes Labor Norms thermal insulation and specific • facilitate temperature control of
and allowances (correction factors) for requirements and recommendations for process;
piping activities according to ASA and external thermal insulation of above • prevent vapor flow and water
DIN. Pipe sizes included in the labor ground surfaces of equipment and condensation on cold surfaces;
productivity norms range from ⅛” up to piping. • increase operating efficiency of
and including 48,” and includes material This section is based on the heating /ventilating /cooling,
factors for welding. Committee Insulation Netherlands plumbing, steam, process and
The measuring system is intended to Industry (CINI) manual, "Insulation for power systems found in commercial
support the settlement and the Industries." DACE follows the CINI and industrial installations;
assessment of the progress of piping standard as much as possible regarding • prevent or reduce damage to
installation. technical recommendations and equipment from exposure to fire or
The DACE tables specify labor common practices. However, DACE uses corrosive atmospheres;
productivity norms for the different a different interpretation for the method • assist mechanical systems in
nominal bores and wall thicknesses for of measurement than described, meeting criteria in food and
each measured item. Please note that according to CINI, in order to be more in cosmetic plants; and,
the unit of quantity (‘1’, viz. per 1 m, per line with the other disciplines. • reduce emissions of pollutants to
1 piece, per 1 kg etc.) is always The CINI Foundation is an institution the atmosphere.
applicable to this labor productivity in which both principals and contractors
norm. cooperate. The CINI Manual is meant to Layers of Insulation
In establishing the linear meters, serve as a tool for designers, purchasers, Insulation shall be applied in a
allowances are included in the labor installers and inspectors in determining minimum number of layers of
productivity norm to account for the the optimal insulation for all common commercially available thicknesses. The
measurement to be taken from pipe situations. For this purpose, the total thickness shall be as close as
center to pipe center or to flange front. experience of specialists from dozens of possible to the most economic insulation
companies were gathered and thickness required, and shall be rounded
Example of an Estimate Using Labor documented in integrated specifications. off to the next largest commercially
Productivity Norms Insulation is defined as those available thickness.
With the information in figure 3, materials or combinations of materials, To reduce heat losses, insulation
tables 4 and 5, you will be able to see a which retard the flow of heat energy by applied in two or more layers shall have
practical example how labor productivity performing one or more of the following staggered joints. Circumferential joints
functions. between segments in adjacent lengths of
pre-formed rigid insulation shall also be glass reinforced epoxy / glass reinforced Activities Codes
staggered. If economically attractive, a plastic finishing. All insulation work required for the
combination of not more than two The jacketing shall provide execution of activities are classified in
different insulating materials may be protection against water and weather, the following groups:
used. fire, oil spillage, mechanical wear or
other damage. Consideration shall be Code 1: Removal of existing insulation.
Insulation Thickness given to the choice of weatherproofing Activity comprises the removal
Criteria for viewing and in terms of safety, life cycle cost, of insulation material.
understanding table 6 includes the environmental/climate conditions, Code 2: Removal of existing sheeting.
following. vulnerability to corrosion, effectiveness Activity comprises the removal
and maintainability. of metal sheeting.
• ambient temperature: 25°C; and, If metal jacketing is used, sufficient Code 3: Installation of existing
• wind velocity: 1 m / s space and drainage shall be provided to insulation. Activity comprises
avoid internal accumulation of water the installation and marking of
Jacketing caused by condensation, water vapor old, visual inspected and
All insulated equipment (except for diffusion, capillary action and water approved insulation material
Polyurethane (PUR) / Polyisocyanuraat ingress. with preservation of the
(PIR) on tank shells) and piping shall be original insulation value,
protected with a jacketing system, such including marking.
as metal, reinforced mastic, tapes or Code 4: Installation of existing sheeting.
Activity comprises the
Definition
See figure 4 which shows a scaffold
where the floor is supported by bracings
(example 1), or suspensions to an
existing construction or existing
scaffolding (example 2). Also review
examples 3-6 in figure 4. To calculate the
method of measurement, round off
upwards to 0.5 m. In reviewing and
understanding figure 4, take into
consideration the following.
Painting
This section describes performance-
based coating applicable for painting and
coating. It is intended for all painting and
coating contracts, including both new
construction and maintenance of
onshore facilities. It includes labor
productivity norms for protection
against external corrosion of both
ferrous and non-ferrous metals.
This section includes descriptions
for coating application and surface
preparation and gives labor productivity
norms for prefabrication and field work
in the same manner as piping.
However, it does not apply for
internal coatings, coating of buildings
and other civil installations, equipment Figure 4 — Independent Scaffolding Examples
Before commencing any painting Coating Surfaces and System example of stainless steel – external is
work, the compatibility with existing Requirements shown in table 11. An example of a labor
coating systems or layers must be An example of Carbon and low alloy productivity norms table is shown in
checked. Existing coating layers may be steels – external is shown in table 10. An table 12.
over coated only with products made by
the same manufacturer.
To ensure that only correctly blasted
surfaces are coated, a minimum of 100
mm around the edges of prepared areas
shall be left uncoated, unless adjoining a
coated surface. When adjoining a coated
surface, a connection to the existing
paint film shall be made. No coating shall
be applied within 50 mm to areas that
will be welded at a later time.
New Construction
General
Minimum coating requirements for
new construction are specified for each
field of service. Surface preparation shall
be in accordance with listed instructions.
The coatings may be epoxy based.
m.van.vliet@costengineering.eu