Construction Target Costing is a method used to shape repair, renovation, maintenance, or new build outcomes and process design to deliver customer value within specific constraints. Despite its effectiveness, it is seldom utilized by public sector real property owners. To effectively implement Construction Target Costing, several key elements must be considered:
1. Detailed technical and cost requirements for the project should align with current commercial construction standards. These requirements should be meticulously developed using precise labor, material, and equipment information sourced from the local market.
2. Collaborative preconstruction activities are essential. Internal and external Planning, Procurement, and Project Delivery Teams should engage in thorough information sharing to ensure a cohesive approach.
3. Embracing robust and collaborative “construction” delivery methodologies is crucial. This includes the creation of written execution plans or operation manuals, along with a multi-party contract that incorporates quantitative metrics for a successful project outcome.
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• Hold a kickoff workshop
• Use a set based approach, evaluating sets against target values
• Provide cost and constructability guidelines and ensure process standardization
• Require collaboration
• Continuously improve uopn technical and cost detailing
• Use value engineering proactively
• Hold reguar review