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Target Value Design (TVD) – Cost Predictability for Large Capital Projects

Target Value Design (TVD) is a proactive Lean Design and Delivery approach that flips traditional construction planning on its head. Rather than designing first and pricing later, TVD begins with the client’s target cost and designs to meet it—ensuring that scope, cost, and value are balanced from the outset.

In Lean Construction, TVD aligns stakeholders early in the project lifecycle to collaboratively define what brings the most value to the client—and then ensures the design and delivery decisions support those values within budget constraints.

It’s all about building to budget, not budgeting for what’s been built.

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What is Target Value Design?

TVD is a collaborative process where owners, designers, engineers, and builders work together to develop solutions that meet the client’s goals at or below a defined cost. Unlike traditional methods that often result in costly redesigns and value engineering late in the project, TVD helps teams design to a target from day one.

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Defining value collaboratively with the client and stakeholders

Lean behaviours in construction last planner system takt planning

Establishing a fixed target cost early in the project

Lean behaviours in construction last planner system takt planning

Designing to meet or beat the cost, not exceeding it

Lean behaviours in construction last planner system takt planning

Continuous estimating and feedback during design phases

Lean behaviours in construction last planner system takt planning

Empowered teams who explore creative alternatives to deliver value

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When to Use Target Value Design

TVD is best suited for complex construction projects where early collaboration, budget certainty, and client engagement are critical. It aligns especially well with:
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Integrated Project Delivery (IPD) models

Lean behaviours in construction last planner system takt planning

Design-Build or Design-Assist projects

Lean behaviours in construction last planner system takt planning

Projects with strict budget or performance constraints

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Clients focused on lifecycle value, not just lowest cost

If your goal is to build smarter, deliver faster, and stay on budget, Target Value Design is a proven method to help you get there.

Lean Touch Solutions provides expert TVD facilitation and training to ensure your team can fully leverage this powerful Lean design tool.

Benefits of Using TVD in Lean Construction

TVD brings clarity, control, and innovation into the project design process while staying firmly rooted in Lean principles. Here’s what makes it a game-changer:
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Eliminates Budget Surprises – Real-time cost feedback during design ensures the project remains financially viable throughout.

Lean Touch Solutions kaizen takt planning

Improves Client Satisfaction – Designs reflect what the client truly values—functionality, aesthetics, quality, or sustainability—within the target budget.

Lean Touch Solutions kaizen takt planning

Reduces Rework and Waste – Early alignment avoids late-stage redesigns, streamlining workflows and reducing non-value-adding activity.

Lean Touch Solutions kaizen takt planning

Enhances Collaboration – Multi-disciplinary teams work together from day one, fostering shared responsibility and decision-making.

Lean Touch Solutions kaizen takt planning

Encourages Innovation – TVD invites exploration of alternative solutions and materials that can meet the same functional outcomes at a lower cost.

Lean Touch Solutions kaizen takt planning

Supports Predictable Outcomes – Projects are more likely to be delivered on time, within budget, and to the client’s satisfaction.

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