3 Financial Benefits of Using Target Value Design in Preconstruction Software

Preconstruction professionals have been utilizing a form of Target Value Design (TVD) for decades. They have the experience to know how to break down a project conceptually into major systems and what those systems generally cost on a cost/gross square foot basis or a proportion of the total budget. This provides a team with a concept baseline to test the proforma and guide the design team.

By embracing a preconstruction software platform that has a focus on TVD workflows, we can optimize the design and budget, dramatically enhance efficiency and deliver projects that exceed Owner expectations. Here are three reasons why implementing TVD during preconstruction planning supercharges your budget and cost alignment process and yields dramatic improvements in the certainty of outcome you can provide.

1. It sets the table for success

TVD is best utilized at the outset of the design and preconstruction effort. Eventually, it will evolve into a much more specific and tactical value option evaluation process; however, incorporating it into your preconstruction workflow can set your team up for success in construction. Using software to hone in on TVD early allows for a more productive system-by-system focus as the design and planning progress throughout preconstruction. TVD has become the cornerstone for project success and the ideal process for maximizing design and budget alignment throughout the entire construction process.

2. It promotes early collaboration among all stakeholders

Creating benchmark-driven targets helps everyone align their design and decision-making efforts toward a common goal. Additionally, it enables teams to achieve this goal by breaking down the project into digestible, bite-size pieces. The real magic happens when everybody focuses on targets they can manage and comprehend. ConCntric presents TVD in preconstruction in a graphical way, allowing for a more understandable and thoughtful discussion about, for instance, which design options or equipment selection will yield a higher-quality asset. When you break it down, tracking targets is only half the effort. The other half is creating a forum to discuss and decide on design options that will collaboratively achieve the given target budget.

3. It increases the likelihood of having to design the project one time only

Setting the target for your project should always be guided by leveraging prior cost history. Rather than relying on a 30-year veteran who relies on memory to retain decades of expertise, data history should be stored in one centralized location where it can be graphically viewed, compared and analyzed for future projects by everyone. In ConCntric, teams are leveraging Calibrate to drive comp histories forward, accessing previous and current project costs as well as the most up-to-date budget to reach design goals. Thought leadership is important, but having a platform that everyone can access and store all of your historical data in an easy-to-use format is much more practical for efficiency and meeting project deliverables.

When correctly done, TVD is a continual discussion and focus throughout preconstruction. Starting this process early allows teams to collaborate more effectively and reduces the likelihood of costly redesign efforts. It’s easy to make Owners happy when you’re using preconstruction software that increases the probability of delivering the project at their initial budget. When you utilize TVD to validate the direction of your construction costs and incorporate a comprehensive estimate, you provide strong evidence that your project is on track.