In most projects, design decisions drive the budget. To help owners get the most out of every cent of their investment, a better approach may be to let the budget drive design.
A major part of our pre-construction process is to utilize what is called ‘Target Value Design.’ Put simply, this is when we build a comprehensive pre-construction team and go through the validated and estimated costs, and then work backwards from that amount to maximize the investor’s budget.
Understanding Target Value Design
Target Value Design, or TVD, is a collaborative approach, involving everyone from designers, builders, suppliers, estimators, and project owners working together to produce a design that offers the best value to investors.
The budget is the main design driver. The team designs according to the budget, instead of the other way around, which can lead to estimating the cost of design and then redesigning aspects to eliminate cost overruns. TVD relies on innovative and critical thinking, as well as responsibility-based project delivery.
Making Informed Design Decisions
Making informed design decisions using the TVD approach keeps costs down once the project is shovel-ready. Some of the project’s most important decisions are made early on during the pre-construction process with the owner’s goals and budget in mind. A budget-first approach ensures that the project will be completed according to expectations because all goals are collaboratively defined at the start, and project managers continuously reinforce these goals to complete the project.
Designing to Target
Many designers and engineers may be inexperienced or unfamiliar with the cost of construction. TVD ensures that the whole team works together to identify the design solutions that deliver the best value. In a more traditional approach to construction, designs progress and change sometimes before a cost analysis is done.
Not only does TVD keep costs down for investors, it also creates a collaborative spirit the team. Everyone can learn some new techniques and solutions, and be confident in the accuracy of the cost. Because TVD has a strong collaborative component, frequent reporting is a must. This ensures that the design stays in sync with the budget.
At Seacoast Construction, we know that TVD delays the start date for a project and can make the pre-construction process painful. But, it will dramatically improve everything once it is shovel-ready.
If you would like some help with pre-construction coordination, we’d be happy to assist. Give us a call at 786-433-8740 to schedule a consultation.
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