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Target Value Design is a critical breakthrough in project controls where all key stakeholders engage to ensure design & construction are guided and constrained to achieving a target cost. Lean & Agile Construction are experienced in supporting TVD on projects and partner with leading global TVD experts for the initial TVD establishment.

TVD is a collaborative design process involving Designers, Cost Control and the Client Representatives co-located (physically or virtually) to collaboratively produce a design that provides the best value for the Client.  Budget (the target value) is a design criterion.  The team designs to the budget instead of the conventional process of estimating the cost of the design, and then re-designing to eliminate overruns.  

TVD is about designing to a budget not budget to design. Cost needs to become a constraint of the design process and the design standard.

Key factors drive the superior performance of TVD projects:

  • The Lean Construction philosophy and methods.
  • Organisational integration – downstream players participate in upstream processes and vice-versa.
  • Shared risk and reward.
  • Clear understanding of design and construction standards

TVD is a very different model from the traditional, large-batch process of design, estimate cost, and value engineering - a process replete with waste. Clients do not value the process of rework and loss of quality that comes from this traditional “value engineering” process. The driving force of TVD is to increase value while decreasing cost for all team members.
Lean Construction Institute

TVD therefore, is a design strategy and process that offers designers an opportunity to engage in the design conversation concurrently with those people who will procure services and execute the design. It focuses on designing based on the project values which become design criteria. Using TVD, the design and construction is steered towards the target cost. A continuous and proactive value engineering process is utilised during the design phase to quickly evaluate the cost implications of design options. Last Planner System is used to coordinate decisions and workflow. Cost is a constraint (one of many) rather than an output of the design process.

Benefits of TVD include

  • Proactive rather than reactive problem-solving
  • Less fighting and more collaboration
  • Better value delivered for the money
  • More satisfied clients - designs that fit stakeholder values
  • Improved communication leads to less confusion around the project's goals & objectives
  • Continuous improvement within projects.