Under budget and ahead of deadline are words that bring music to any clients’ ears, especially with today’s increasingly tight financing and complex building needs. Particularly in the wake of the recent worldwide recession, more developers are looking for means to control costs and increase efficiency. So when a model emerges that promises to minimize waste and not exceed the target cost for the project, it’s no surprise that people are taking notice.
Poised to revolutionize the design and construction industry, Target Value Costing (TVC) has literally turned the standard design practice upside down. The traditional approach is to design a project and then determine how much it will cost to build. TVC completely reverses this process, allowing the design to be developed within the framework of the overall budget cost to offer clients more control over the final price tag. In essence, the cost of design options are being evaluated simultaneously, which insures that the final design — and the cost — is in line with the original goals.
At the heart of TVC is collaboration and communication among the architects, engineers and contractors. Right from the initial planning stages these teams come together to share their expertise and exchange ideas on how to streamline the process and get the optimum solution for the best value. It’s a method that even in its infancy is proving to be very successful.
This collaboration of expertise from the very beginning allows for a more definitive and precise outline of project goals, priorities and feasibility aligned with user requirements before any time is spent on the design. Traditionally, the project is designed first and evaluated second. TVC encourages all parties involved to determine what is constructible and then design to the constructability.
Of course, TVC is not a stand-alone method. In using TVC, rapid cost evaluation is paramount to its success. For this reason, Building Information Modeling (BIM) plays a fundamental role. Not only can the technology show designers what the building will look like in its final stages, but it can also determine how much each element of the design will cost.
The technology even goes as far as to show what materials and resources will be needed for different areas of the project and figure out the best sequence for building before construction begins. While the traditional 2D, drawing-based model has worked in the past, BIM uses a 3D model that proves to be a leaner approach that also reduces scope for errors and omissions. It speeds up the process of cost estimation, saving both time and money.
The combination of BIM with TVC was used in the design of the Harbor College Science Complex in Los Angeles. The design of the Harbor College Science Complex was faced with added complexity as it undertook the challenge of striving for LEED Platinum certification. The collaboration and exchange of ideas among team members at each stage of the design process greatly added to the superior results of the project. The design came in under budget, ahead of schedule and even added scope to the initial design.
An impressive feat for any project, it stands as a promising example that TVC is adding value to the design process. It’s positioned to improve efficiency, lower costs and enhance flexibility. It draws on collaboration of all resources and expertise from the initial stages of design and uses advanced technologies like BIM to ensure that it remains on track to meet budgets and deadlines.
Currently considered another hot trend in design, TVC has received solid praise from all sides of the industry, from client to designer. The economic climate has pushed companies to look more closely at how to run leaner and more productive businesses. As TVC continues to prove itself as a means to increase efficiency and lower costs, it certainly stands to have a much more permanent role in the future of design.
— James Matson is associate vice president and director of the higher education practice in the Los Angeles office of HGA Architects and Engineers.