In the delivery of major construction projects, the programming phase is often poorly managed. Additionally, there is often a lack of dialog among the stakeholders during the initial design phase, resulting in projects that are over budget, difficult to construct, and finishing later than desired. Rework, waste, and change orders also often occur. Target Value Design (TVD) is a management approach that utilizes features of Target Costing and adapts them to the construction industry. TVD’s focus is to make the client’s value a primary driver of design by improving the project definition during programming thus optimizing the design phase. Despite recent research praising TVD, there still remains a lack of information related to TVD applied to real estate development and construction. This paper reports on a study aiming to identify weaknesses in processes currently used to define construction projects in light of TVD theory for real estate and construction companies. The authors describe findings from exploratory case studies, various interviews and documents analyzed based on a theoretical framework obtained from a literature review of TVD theory. Consequently, recommendations supporting the application of the fundamental concepts of TVD to real estate projects are presented and discussed, furthering the current debate concerning the adaptation of TVD to the construction industry.
Target Value Design, Value, Collaboration, Project Definition, Real Estate Development