de Melo, R S S; Do, D; Tillmann, P; Ballard, G and Granja, A D (2016) Target value design in the public sector: Evidence from a hospital project in San Francisco, CA. Architectural Engineering and Design Management, 12(2), pp. 125-137. ISSN 1745-2007
Abstract
Target Value Design (TVD) is a management practice that steers the design and construction of the project to the customer's constraints while maximizing the value delivered within those constraints. TVD practice has been mostly pursued in private projects on which the client and key members of the project team all sign one multiparty contract. The use of TVD in public sector projects may differ widely in terms of application process and achievable results if compared to its use in private projects. This in-depth case study investigates how a public owner applied TVD given public procurement restrictions. Evidence from this case study suggests that TVD can be applied in public sector projects in which multiparty contracts are prohibited. Although it was not possible to apply all of the elements of the current TVD process benchmark on the project due to regulatory or legal restrictions, evidence from this case study suggests that a not full-fledged application still provides significant cost savings and allows design to be steered towards a target cost on a public project. Target Value Design (TVD) is a management practice that steers the design and construction of the project to the customer's constraints while maximizing the value delivered within those constraints. TVD practice has been mostly pursued in private projects on which the client and key members of the project team all sign one multiparty contract. The use of TVD in public sector projects may differ widely in terms of application process and achievable results if compared to its use in private projects. This in-depth case study investigates how a public owner applied TVD given public procurement restrictions. Evidence from this case study suggests that TVD can be applied in public sector projects in which multiparty contracts are prohibited. Although it was not possible to apply all of the elements of the current TVD process benchmark on the project due to regulatory or legal restrictions, evidence from this case study suggests that a not full-fledged application still provides significant cost savings and allows design to be steered towards a target cost on a public project.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | public sector; cost management; design management; target costing; target value design; case studies; architectural engineering; hospitals; cost control |
| Index terms: | design management, case study, cost control, design and construction, target cost, architectural engineering, target value design, cost management, project team, management practice, target costing, cost saving, evidence, public owner, public project, public sector |
| Subjects: | design process, evaluation and assessment methods, administrative law, infrastructure engineering, accounting and finance, contractual arrangements, management, financial and cost management, sociology, data collection methods, design practice, project delivery, value management, economics |
| Topics: | Design Practice, Legal Issues, Cost Management, Procurement, Engineering Principles, Stakeholder Management, Project Management, Research Practice, Business Strategy |
| Descriptive scope: | 4 PCEA |
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