TVD IN IPD: What’s in your Bucket? – Value Informs Cost

Last week, a principal architect at SRG Partners published an essay focused on Target-Value Design (TVD) as an element of lean integrated project delivery (IPD), especially in design/build contracts. She says it is “a way to break the project budget into smaller buckets of money and then designing to meet the smaller buckets. You begin with the estimate – not with the design.”

A requirement of TVD is involvement of cost estimators early in pre-design to get a baseline estimate before moving forward. According to another recent article, Bevan Mace, National Vice President of Operations and Lean at Balfour Beatty Construction, says TVD has become more prominent as project teams prioritize identifying value first. “Rather than design informing cost,” Mace said, “value informs cost,” (or budget) and budget informs design, effectively flipping the traditional design process upside down.

TVD is increasingly included in Design/Build projects. The Project Production Systems Laboratory (P2SL) at UC Berkeley is advancing the application of TVD and collaborating with building industry participants who “question the status quo” to improve performance, through lean thinking and practices, to deliver services.

  1. George M. Blackburn, AIA

    I am wondering if TVD includes requirements for performance verification testing for the building envelope. Most of my work now is consulting on lawsuits related to the cause and origin of failures of the building enclosure related to water penetration primarily, but also air and thermal leakage to a lesser degree. If the performance verification testing of all types had been done, most of the failure issues and the lawsuit would have been avoided. Air and thermal leakage is mostly about building energy use and not readily observed by the building occupants, but can significantly increase the cost of operating the building.

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