Target Value Design (TVD) is a tool that is integral to the implementation of Integrated Project Delivery. It is a collaboration process in which key design and construction participants develop an understanding of an owner’s program and purpose. Its use ensures that the facility meets the owner’s operational needs, is delivered on budget, and increases value and decreases waste through innovation.
TVD stands in stark contrast to traditional project delivery in which the designer develops plans and specifications in isolation. With TVD key design and construction players are assembled early. Their first task is to determine whether the facility can be built within the proposed budget. The team’s conclusions are documented in a validation study, which consists of a design analysis and a detailed cost estimate.
Once the project’s viability is established, the team develops a strategy for its implementation. The players establish initial target costs for major components. Ways of adding value are identified. Cross-disciplinary teams are also created to coordinate effort and monitor cost. Once the design is complete, key participants finalize the target cost and the scope of work that must be achieved to attain that cost.
Innovation and waste reduction are the lodestars which guide this process. These are achieved through intensive collaboration and coordinate expertise.
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