UC Berkeley

Target Value Design (TVD), referring to the application of Target Costing (TC) to the delivery of projects in the Architecture-Engineering-Construction (AEC) industry, radically differs from what has become the traditional way of designing and making products. Rather than treating cost as an outcome of wasteful design-estimate-rework cycles, TVD is a method that makes customer constraints (on cost, time, location, and others) drivers for design in pursuit of value delivery. This document introduces TVD by retracing its roots and describing why owners and, in fact, all project participants can benefit from using TVD. It presents the components of a TVD framework, detailing how this lean method applies in practice to the delivery of a capital asset such as buildings, and then offers the current benchmark to those who wish to get started using TVD or assess their current practice. A glossary at the end recaps the terms introduced in the text.