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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.

Assessment of current target value design practices: consistencies and inconsistencies of application