Construction Glossary
Target Value Design
All the stakeholders (owner, designer, contractors, specialty trades, etc) design to the budget and goals of the owner. This differs from the conventional process of designing first and then re-designing to eliminate cost overruns.
What Is Target Value Design?
Target Value Design is a collaborative approach in construction where all stakeholders, including owners, designers, and contractors, work together to align the project design with a predetermined budget. This method emphasizes value optimization, ensuring that the project meets the owner’s goals while staying within financial constraints. By focusing on cost-effectiveness from the outset, Target Value Design aims to prevent cost overruns and promote efficient resource use.
Example
Used in a project where the entire team collaborates from the beginning to ensure the building stays within a specified budget of $2 million.