Target Value Design: Setting Projects Up for Success

Target Value Design (TVD) is a crucial strategy in modern construction, ensuring that projects are completed within budget while maximizing value. At its core, TVD shifts the focus from merely meeting a predetermined budget to designing a project that delivers the maximum possible value within financial constraints. This proactive, value-driven approach contrasts traditional methods where budgets are often developed after designs, frequently leading to cost overruns and missed expectations.

In TVD, the project budget isn't a limit but a target. All team members—owners, designers, contractors, and key stakeholders—collaborate from the early stages, ensuring that every design and construction decision supports both financial goals and project objectives. By aligning goals early, it becomes easier to avoid waste, rework, and scope creep, which are common causes of budget and schedule overruns.

To implement Target Value Design successfully:

Early Collaboration: Assemble your team of designers, engineers, contractors, and stakeholders from the start. Foster an environment where all parties contribute to cost-related decisions.

Set Clear Value-Based Targets: Establish the project's financial goals and key value drivers early on. This ensures that the design aligns with the owner's priorities.

Iterative Design Reviews: Consistently review design progress against cost estimates. Adjustments should be made before proceeding to ensure alignment with the target budget.

Utilize Lean Tools: Incorporate lean construction tools like Last Planner System® and Choosing By Advantages to further streamline decision-making and avoid waste.

By integrating TVD, construction professionals can ensure projects are more predictable, cost-effective, and successful from inception through completion, leading to satisfied clients and less risk for all stakeholders involved.