How Stochastic Cost Estimates Could Be Applied in Relation to Target Value Design

Torp, Olav

doi:10.24928/2019/0239

Cited by 5 publications

(3 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Some researchers claim that the target cost should be lower than the allowable cost for both project alliancing and Integrated Project Delivery (Sakal, 2005;Fischer et al, 2017). Torp (2019) has studied how public agencies in Norway set cost targets. In Norway, both the Norwegian Public Roads Administration and Statsbygg (the Norwegian government's principal advisor in construction and property affairs) use steering targets lower than the allowable cost.…”

Section: Introductionmentioning

confidence: 99%

Development of Target Cost for a High-Performance Building

Engebø¹,

Torp²,

Lædre³

2021

Annual Conference of the International Group for Lean Construction

Self Cite

View full text Add to dashboard Cite

Target costing aims at making both cost and value to drivers for design. Still, few have studied how this is done in a high-performance building project, where a set of parameters beyond the typical cost, schedule, and quality parameters are optimised. Here we explore how a construction project team collaborated to reach the owner's allowable cost during design using observations and document study. The findings show that the owner should precisely describe expectations before starting Target Value Design. If not, the owner will get disengaged or develop suspicion towards provided cost estimates. Furthermore, we argue that the typical development of expected cost can inhibit a high-performing design team. The expected cost typically starts at the owner's allowable cost, increases drastically during design, and has to be substantially reduced. The consequence is that a highperforming team's mood moves from optimism towards realism and eventually into a realm where challenges occur. The domain where challenges arise is when the project team must substantially reduce the expected cost to reach an acceptable level. To remain high-performing throughout, the project team should avoid a drastic increase in expected cost in the initial stages.

show abstract

Section: Introductionmentioning

confidence: 99%

Development of Target Cost for a High-Performance Building

Engebø¹,

Torp²,

Lædre³

2021

Annual Conference of the International Group for Lean Construction

Self Cite

View full text Add to dashboard Cite

show abstract

“…This benchmarking process uses historical information which must specify project-specific elements in order to achieve a realistic maximum project cost. Torp (2019) concluded that stochastic estimates can be applied for setting Allowable Cost (P85) and estimating Expected Cost (P50).…”

Section: Cost Estimationmentioning

confidence: 99%

Maturity of TVD Implementation in Norwegian Public Building Projects

Smoge¹,

Torp²,

Johansen³

2020

Proc. 28th Annual Conference of the International Group for Lean Construction (IGLC)

Self Cite

View full text Add to dashboard Cite

There is an emerging international interest in the Architecture, Engineering and Construction (AEC) industry towards designing and constructing building projects based on Target Cost (TC) through the development of 'Target Costing' and Target Value Design (TVD) 4. The aim is to create more value for the client and the users through iterative design processes focusing on optimization of value within cost limitation. The purpose of this study is to discover and bring awareness of the maturity of TVD implementation during the pre-project phase in Norwegian public building projects. Findings in the research are a result of a literature study and five case studies which included a document study and semi-structured interviews with the involved project managers (PMs) from both the client and the contractor. The case studies provide the current maturity of TVD implementation during the pre-project in a number of Norwegian public building projects and shows that the TVD characteristics are only partially implemented. TVD maturity varies across the categories: contracting, organizing, defining (business case and validation) and steering. Furthermore, enhancing maximum project value is a challenge due to the lack of visualization and the focus towards cost reduction.

show abstract

“…Os autores propõem diretrizes para a implementação da metodologia nesse contexto, mas não deixam claro como os custos de mercado são definidos. O custo de mercado é a saída do modelo de custo e estimado pela equipe do projeto (TORP, 2019).…”

Section: Introductionunclassified

Proposta de aplicação do target costing no processo de projetos de empreendimentos imobiliários em Goiânia

Filho

Amaral

Ulhôa

2021

Xii Simpósio Brasileiro De Gestão E Economia Da Construção

View full text Add to dashboard Cite

Target Value Design (TVD) é uma metodologia de gerenciamento de projetos que vem demonstrando benefícios para a indústria da construção civil. Porém, são poucos os estudos referentes a sua aplicação na gestão de empreendimentos imobiliários em países como o Brasil. Sabe-se ainda que um dos grandes desafios na aplicação da abordagem está na definição precisa do Custo-Meta, uma das premissas do TVD, essencial para a distribuição de lucros e riscos entres os stakeholders do processo de projeto. Em paralelo, há estudos que apontam para a sinergia entre Building Information Modeling (BIM) e Target Costing (TC). O objetivo deste artigo é discutir como definir o Custo-Meta no processo de projetos de empreendimentos imobiliários no mercado goiano. Para tanto, foi realizado um estudo de caso exploratório em uma Incorporadora, duas Construtoras e em suas respectivas empresas projetistas parceiras com o intuito de mapear o fluxo atual do Estudo de Viabilidade. Ao final é proposto um novo fluxo, sob os princípios do TVD com apoio no BIM, e apresentadas as principais barreiras para aplicação da abordagem no contexto analisado. Os resultados sugerem que esse contexto propicia a aplicação do TVD.

show abstract

How Stochastic Cost Estimates Could Be Applied in Relation to Target Value Design

Cited by 5 publications

References 7 publications

Development of Target Cost for a High-Performance Building

Development of Target Cost for a High-Performance Building

Maturity of TVD Implementation in Norwegian Public Building Projects

Proposta de aplicação do target costing no processo de projetos de empreendimentos imobiliários em Goiânia

Contact Info

Product

Resources

About