Development of Target Cost for a High-Performance Building

Engebø, Atle; Torp, Olav; Lædre, O.

doi:10.24928/2021/0131

Cited by 6 publications

(10 citation statements)

References 20 publications

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“…The observation from phase 1 that ECI ensured greater design quality, cost estimation and collaboration correspond with the findings of Sødal et al (2014). That there is a connection between collaboration, and increases in scope and expected costs during design, is in line with the findings of Engebø et al (2021).…”

Section: Phasesupporting

confidence: 83%

“…The effects in the later parts of phase 1 illustrate the importance of having a realistic cost estimate in the front-end, as noted by Torp (2019). However, while the target cost contract in the project observed by Engebø et al (2021) was reduced through reducing project scope, the case studied here secured a contract through transferring risk from the contractor to the client. If the initial cost estimates had been more realistic, the client and the contractor would probably have been able to negotiate a target cost contract at an earlier point in time, and the client would have had more flexibility in negotiations, which may have resulted in a more balanced, equitable and clear risk distribution, and thereby better collaboration.…”

Section: Phasementioning

confidence: 97%

“…Torp (2019) noted the importance of realistic cost estimates in the front-end of TVD projects. Engebø et al (2021) studied collaborative challenges in a TVD project caused by estimated costs that significantly exceeded allowable cost during the design phase. The study recommended clients to set a realistic allowable cost in the front-end of TVD projects, and prevent drastic increases in scope and expected costs during subsequent design.…”

Section: Target Costingmentioning

confidence: 99%

See 2 more Smart Citations

Collaborative Project Delivery With Early Contractor Involvement and Target Cost

Narum¹,

Engebø²,

Lædre³

et al. 2022

Annual Conference of the International Group for Lean Construction

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Lean and collaborative project delivery aim to increase productivity and create value in construction projects. Early contractor involvement and target costing are key elements in collaborative delivery. This study explores how early contractor involvement and target cost has been implemented, and the effects of these elements, in the collaborative delivery of a building in Norway. After two months of daily observations and a literature study, further data was collected from the main stakeholders through a document study and sixteen semi-structured interviews. Establishing a reasonable scope, allowable cost and procurement strategy in the front-end was identified as important. Early contractor involvement was determined to have improved constructability, commitment, cost estimation, and team building during the design phase. A balanced, equitable and clear risk distribution in the target cost, and continuous involvement of the client and senior management, was identified as important for collaboration in the execution phase. External factors beyond the control of the project group were found to have been impactful throughout the project. The study calls for more research on the impact of external factors, and the involvement of architects, consultants and subcontractors, in Lean and collaborative project delivery.

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Section: Phasesupporting

confidence: 83%

Section: Phasementioning

confidence: 97%

Section: Target Costingmentioning

confidence: 99%

See 1 more Smart Citation

Collaborative Project Delivery With Early Contractor Involvement and Target Cost

Narum¹,

Engebø²,

Lædre³

et al. 2022

Annual Conference of the International Group for Lean Construction

Self Cite

View full text Add to dashboard Cite

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“…A tool is a structured technique or instrument that facilitates the implementation of principles, while a management practice refers to concrete actions associated with increasing productivity [62][63][64]. Table 1 includes the first documented project practices that are used and recommended [47,48]; the fundamental practices listed by [27]; and updated, added, and recommended practices and tools that were associated with the TVD, lean design, and lean management by other authors [4,5,9,11,[15][16][17]55,60,61,[65][66][67][68][69][70][71][72][73][74][75][76][77][78][79][80].…”

Section: Tvd Practices and Toolsmentioning

confidence: 99%

Exploring Value Generation in Target Value Design Applying a Value Analysis Model

et al. 2022

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Target value design (TVD) is a management approach that applies target costing in the design and construction industry. TVD enables a project environment with favorable characteristics to generate value. However, because the TVD’s primary assessment is cost, target cost can be met without necessarily achieving the project’s full value. This research applies the action research approach to implement TVD in a housing project and explores the value generation of the project using a value analysis model (VAM) to study the balance between cost and value fulfillment in the product and design process. According to the results, even though the target cost was achieved, the desired value of the project was not achieved during the project design. However, there is a tendency to increase value over time to a greater extent in the product and not so much in the process. The main contributions of this study are the possibility of comparing cost and value, identifying the emphasis of product over process and cost over value throughout the TVD project. This study enhances the literature on project value generation and maximization, offering new knowledge for a better understanding of how to conduct a value analysis in combination with costing in TVD projects.

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“…Projects can be delivered through various delivery methods, ranging from traditional design-bid-build to more integrated forms such as strategic partnering (Koolwijk et al, 2020). Amongst other aspects, the project delivery method dictates how the project team engages, the means used, and how different parties get involved (Engebø et al, 2021). However, this paper is limited to strategic partnering and so-called collaborative project delivery that seeks to integrate and align the parties early, i.e., already in the planning phase (Fischer et al, 2017).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Strategic Partnering Between Contractors and Designers

Paulsen¹,

Engebø²,

Lædre³

2022

Proc. 30th Annual Conference of the International Group for Lean Construction (IGLC)

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In recent years, the concept of strategic partnering has gained attention in the Norwegian construction industry. As a project delivery method, strategic partnering shares similarities with the Lean project delivery perspective as they both seek to achieve more collaborative projects. The paper has structured strategic partnering into three essential Lean Construction (LC) elements: contract, organization, and collaboration. Consequently, this paper contributes to knowledge about strategic partnering between contractors and designers by answering the two research questions: 1) How is the current practice associated with strategic partnering, and 2) What are the experiences with strategic partnering between contractors and designers.An exploratory case study was conducted to examine how strategic partnering can be improved in future projects. A combination of literature review and semi-structured interviews were used for data collection.The findings reveal an improvement potential when implementing strategic partnering in the construction industry. The paper concludes that more attention should be paid to contract elements and the project organization at the company levels to improve strategic partnering. However, at the individual level, good effects have been identified. Findings also showed that external factors like political decisions can lead to postponements and thus changes in personnel in the organization.

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Development of Target Cost for a High-Performance Building

Cited by 6 publications

References 20 publications

Collaborative Project Delivery With Early Contractor Involvement and Target Cost

Collaborative Project Delivery With Early Contractor Involvement and Target Cost

Exploring Value Generation in Target Value Design Applying a Value Analysis Model

Strategic Partnering Between Contractors and Designers

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