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build lean? Focus on
value first
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Ready to break construction silos?
· Building Cost Savings
· Waste Minimization
· Inventory Optimization
· Innovation and Collaboration
The value of TVD
Maximizing owner ROI requires a shift.
It’s called Target-Value Design and Delivery (TVD).
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Project teams start with what’s valuable to the owner and to the mission of the project, and budget and schedule are considered constraints. Rather than design informing cost, value (scope) informs budget, which informs design, effectively flipping the traditional design process upside down.
Bevan Mace, Vice President at Balfour Beatty
What is TVD?
TVD provides greater value for stakeholders all around.
Traditional processes vs. TVD
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=
$1.25M
in cost increases with
zero changes to scope*
Trade partners
Not unlike other design-build projects, the Pentagon Memorial team defined budget and schedule parameters as the design solutions evolved. The highly flexible design-build team blended a pace for planning, coordinating and execution of workforces to push the project at impactful technical and social milestone points.
Contractors
Owners
In the past, construction budgets were built from current market costs.
Today, you can’t rely on historical pricing to build your budget.
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Designers
With TVD, the entire team is constantly aware of the actual cost status and is driven to meet or beat the cost target.
Owners
Chronology of a Lean Project
TVD project timeline
Client's Business Case
Key Players:
Sufficient to Price
Preliminary
Cost
Expected
Cost
Co-location
Savings
Target Cost
Contractor
Team
Major
Trades
Major
Suppliers
Preliminary Design
Programming
Assemble Team
Validate
Cost
Target Value
Design
Final Cost
Project Delivery Design
Production - Construction
Commissioning
(Courtesy of Dick Bayer, The ReAlignment Group Canada, Ltd)
Owner's
Business Team
Design
Team
Not unlike other design-build projects, the Pentagon Memorial team defined budget and schedule parameters as the design solutions evolved. The highly flexible design-build team blended a pace for planning, coordinating and execution of workforces to push the project at impactful technical and social milestone points.
Trade partners
Not unlike other design-build projects, the Pentagon Memorial team defined budget and schedule parameters as the design solutions evolved. The highly flexible design-build team blended a pace for planning, coordinating and execution of workforces to push the project at impactful technical and social milestone points.
Contractors
Not unlike other design-build projects, the Pentagon Memorial team defined budget and schedule parameters as the design solutions evolved. The highly flexible design-build team blended a pace for planning, coordinating and execution of workforces to push the project at impactful technical and social milestone points.
Designers
© Dick Bayer, 2009; updated March 2, 2011
It’s a process that allows project partners to explore many ideas at the same time to determine the best all-around solution based on what’s most important to the client.
TVD =
Target-Value Design and Target-Value Delivery
Silos
Under TVD, key stakeholders are contracted earlier to co-create solutions and provide real-time insights on design challenges. They look out for how best to build the project and steer to targets.
Cross-functional teams
Traditional
TVD
Under TVD, key stakeholders are contracted earlier to co-create solutions and provide real-time insights on design challenges. They look out for how best to build the project and steer to targets.
This is true of all targets that
are important to the owner or
the project’s end-users, like schedule or energy performance.
Budget-focused
Under TVD, key stakeholders are contracted earlier to co-create solutions and provide real-time insights on design challenges. They look out for how best to build the project and steer to targets.
Teams constantly assess the state of design primarily against clearly identified targets as well as budget and schedule constraints. Throughout design and construction, they track opportunities and risks.
Target-focused
Traditional
TVD
Traditional
TVD
Big-batch design
Schematic design, design development, construction document packages.
Under TVD, key stakeholders are contracted earlier to co-create solutions and provide real-time insights on design challenges. They look out for how best to build the project and steer to targets.
TVD considers multiple options for key features of work, such as systems and floor plans. It also drives faster-paced, collaborative workflows and quick analysis of real-time data. The end result is a team-based decision that reduces the chance of rework, repricing, change orders and (de)value-engineering.
Small-batch design
Better cost certainty
TVD =
TVD grants trade partners earlier involvement and a bigger voice in the project.
This allows teams to learn from one another, creating trust, which improves everything from safety to schedule to quality.
Better partnerships
TVD =
The general contractor can address design cost and constructability upfront.
This helps eliminate waste and reduce risk by providing owners with early and accurate cost models.
Proactive risk management
TVD =
Under TVD, design intent is established and defined much earlier -- allowing the construction team to understand the design in greater detail.
This opens the door for greater design innovation and collaboration.
Design excellence
TVD =
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