12. DENIS FORMULA – REVISION #4 – IMPERIAL

12.1 OVERVIEW: DENIS FORMULA

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James S. Denis, President of MHG International Inc. based in Calgary, Alberta, first introduced the proposed "Standard Method of Measurement", May 1980 to a World Insulation and Acoustic Congress (W.I.A.C.O.) held in Paris, France.

Later in 1980, the 'Denis Formula' was introduced to major clients in the petro-chemical industry. It quickly gained approval and acceptance as 'fair' to both client and contractor. It is now widely used on industrial projects. Quite apart from the obvious benefit of having one standard method of measurement for the industry, the formula, with ever increasing acceptance and usage, brings economic benefits to the owner.

By identifying and defining the 'labour' intensive portions of the work, with factors to compensate for same, the formula has the balancing effect of reducing 'unit prices'. The prices more properly are based on the straight work where previously they had built-in difficulty factors at time of tendering.

Use of the standard method of measurement (Denis Formula) has eliminated most of the guesswork.

The end result is beneficial to both the owner/client and the insulation contractor. By use of the formula the parties simplify the process of determining the final quantities and value of the work with strict control over the method.