Collaboration to Extend Target Costing to Non-Multi-Party Contracted Projects: Evidence From Literature

Reymard Savio Sampaio de Melo1, Ariovaldo Denis Granja2 & Glenn Ballard3

1PhD Student, Construction Management Research Laboratory (LAGERCON), School of Civil Engineering, Architecture and Urban Design, University of Campinas, Campinas, SP, Brazil reymardsavio@gmail.com
2Professor, Architecture and Construction Dept., Director of the Construction Management Research Laboratory (LAGERCON), School of Civil Engineering, Architecture and Urban Design, University of Campinas, 951 Albert Einstein Ave, P.O. Box 6021, Campinas, SP 13083-852, Brazil, Phone: +55 19 3788-2082, adgranja@fec.unicamp.br
3Research Director of the Project Production Systems Laboratory (P2SL), 214 McLaughlin Hall, Univ. of California, Berkeley, CA 94720-1712, USA, ballard@ce.berkeley.edu

Abstract

Target Costing (TC) has been used in the manufacturing industry as a means of managing product profitability during the product development process. Efforts to adapt the TC manufacturing approach to the construction industry resulted in a management approach called Target Value Design (TVD). So far TVD research and practice are linked and limited to collaborative forms of project delivery based on multi-party contracting such as Integrated Project Delivery (IPD). Prior studies and anecdotal evidence suggest that early collaboration among key project stakeholders plays a significant role throughout the TVD process. As a result, TVD application in less collaborative project delivery arrangements (e.g., design-bidbuild or design-build) remains a challenge. As yet, TVD literature lacks a wide overview of theoretical and empirical evidence relating early collaboration through other means than multi-party contracts. This paper attempts to address this gap in the TVD literature by conducting a systematic mapping study to shed some light on future TVD research. Following an evidence-based approach, we seek to answer the following research question: Which research topics have been covered for promoting collaboration among key project stakeholders (owner, architect, engineers, contractor and subcontractors) when their incentives are not aligned through multi-party contracts? The selected papers are classified with respect to the common research subjects. Out of our sample of 47 papers, the most common categories of research subjects are: project partnering, incentive systems and public-private partnership. These three categories can be considered as evidence clusters and the remaining categories (cooperative procurement, social network analysis, trust and project alliancing) can be considered as scarce evidence. We discuss these categories and suggest future research directions to overcome the potential barriers of TVD application in construction.

Keywords

Collaboration; Target Costing; Target Value Design; Construction industry.

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Reference

Melo, R.S.S.D. , Granja, A.D. & Ballard, G. 2013, 'Collaboration to Extend Target Costing to Non-Multi-Party Contracted Projects: Evidence From Literature' In:, Formoso, C.T. & Tzortzopoulos, P., 21th Annual Conference of the International Group for Lean Construction. Fortaleza, Brazil, 31-2 Aug 2013. pp 237-246

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