Rybkowski, Z K; Arroyo, P and Parrish, K (2022) Assessment of current target value design practices: Consistencies and inconsistencies of application. Construction Management and Economics, 40(7-8), pp. 598-617. ISSN 01446193
Abstract
Target Value Design (TVD) refers to the application of Target Costing (TC) to the delivery of projects with the involvement of owners, architects, engineers, and constructors (OAEC). TVD has been adopted by the construction community to avoid project cost overruns while simultaneously improving value. TVD implementation involves a number of practices: clearly identify owner value, develop an inclusive interdisciplinary team organization, provide appropriate financial and contractual incentives, create a culture of respect, and steer to cost and value targets with TVD tools. While application of TVD has grown, not all results are as favourable as they might be. It is possible that TVD application may be piecemeal at times—potentially because the impacts of individual practices are unknown. This paper explores a fundamental research question: how consistent or inconsistent is the application of TVD principles, practices, and tools? To address this question, the authors reviewed 29 academic publications on TVD, surveyed 14 TVD practitioners through an anonymous on-line survey, and hosted two open-ended focus groups with 6 TVD facilitators. Results indicate that some—but not all—TVD practices are consistently being implemented, which may suggest one cause for observed variability of outcomes.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | collaboration; contracts; culture; integrated project delivery; lean construction; target value design; tools; value |
| Index terms: | target value design, survey, facilitator, owner, practitioner, variability, target costing, collaboration, overrun, architect, focus group, publication, project cost, implementation, engineer, lean construction, integrated project delivery, construction community |
| Subjects: | project controls, economics, statistical analysis, professional development, management, building construction, research dissemination and communication, sociology, contractual arrangements, profession, data collection methods, practitioner, value management |
| Topics: | Research Practice, Site Management, Cost Management, Information Management, Stakeholder Management, Procurement, Organizational Design, Roles and Professions, Time Control |
| Descriptive scope: | 3 PCE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here