Target Value Design (TVD) has extensively been adopted in Integrated Project Delivery (IPD) environments in the U.S. Drawn from a profit planning approach used in the manufacturing industry called Target Costing (TC), TVD supports integrated project teams to plan and deliver projects for an agreed target cost. Research on TVD has revealed the success rate for delivering a project at or below the agreed target varies, and the results does not always meet expectations. Therefore, the aim of this paper was to report on lessons learned from an in depth case study that can contribute to advance the knowledge and improve the practical application of TVD on IPD projects. The research reported in this paper is part of an overarching research effort to improve the adoption of lean construction methods in the context of IPD-ish type of projects for the public sector in California. As multiparty agreements is not an option available for organizations in the public sector, this research effort focuses on understanding the underlying mechanisms of IPD in addition to contextual elements that can influence the successful application of TVD.
Target Value Design, Target Costing, Integrated Project Delivery