Target Value Delivery (TVD) is a Lean approach that consists of designing a project from expected value instead of discovering too late that cost, deadlines, or performance are no longer under control.
Unlike classic approaches where cost is often assessed after design, TVD integrates from the outset:
- project objectives,
- economic constraints,
- uses,
- expected performance,
- and overall value creation.
The objective is not only to "respect a budget".
The objective is to design a project that is:
- coherent,
- high-performing,
- operable,
- and aligned with the real needs of the client and users.
Simple definition
Target Value Delivery is a collaborative design method from Lean Construction.
Its fundamental principle is simple:
Cost, value, and performance become design parameters from the beginning of the project.
In a classic approach:
- the project is designed,
- then cost is estimated,
- and adjustments often come too late.
This frequently leads to:
- rework,
- late arbitration,
- loss of value,
- and project tension.
TVD reverses this logic.
The project is designed:
- from value objectives,
- real constraints,
- and expected performance.
TVD therefore seeks to align:
- user value,
- target cost,
- quality,
- deadlines,
- future operations,
- and sustainability.
Why it matters
In many projects:
- costs gradually drift,
- arbitration becomes reactive,
- and some decisions degrade the project's overall value.
Very often:
- design choices are frozen too early,
- stakeholders work in silos,
- and the real impacts of decisions appear late.
The result:
- cost overruns,
- delays,
- lower quality,
- conflicts,
- loss of operational performance,
- and sometimes assets that are difficult to operate.
TVD instead seeks to:
- make trade-offs visible,
- integrate constraints from the start,
- and build a shared view of value.
This approach is particularly relevant when:
- projects are complex,
- economic stakes are high,
- interfaces are numerous,
- or operational requirements are critical.
Concrete example
On a hospital project:
design teams propose several highly effective technical solutions.
But some options:
- significantly increase operating costs,
- make maintenance more complex,
- or reduce the building's future flexibility.
In a classic approach:
- these impacts are sometimes discovered late,
- after several months of studies.
With a TVD approach:
- costs,
- uses,
- maintenance,
- and operations
are integrated into decisions very early.
Teams can then:
- compare alternatives,
- make trade-offs collectively,
- and choose the solutions that create the most overall value across the project life cycle.
Common mistakes
Reducing TVD to a cost-reduction approach
TVD seeks to optimize the project's overall value, not only its budget.
Freezing design too early
Some prematurely made decisions strongly limit optimization possibilities.
Designing without integrating future operations
Major costs often appear after project handover.
Working in silos
Trade-offs become more effective when stakeholders truly collaborate.
Considering target cost as a simple financial objective
The target cost must be connected to:
- value,
- uses,
- and the project's overall performance.
Indicators to track
TVD uses several indicators linked to value and overall performance:
- Target cost adherence
- Number of design iterations
- Rework rate
- Decision lead time
- Life-cycle performance
- Estimated operating cost
- User value
- Level of constructability
- Carbon emissions
- Reliability of trade-offs
- Stakeholder satisfaction
- Future project flexibility
The objective is to measure the project's overall coherence, not only its immediate cost.
Frequently asked questions
What is the difference between TVD and classic estimating?
Classic estimating measures cost after design.
TVD integrates the target cost from the beginning of studies.
Does TVD seek to reduce quality?
No. It seeks to maximize the project's overall value.
Why integrate operations from the design stage?
Because most of an asset's costs appear after handover.
Does TVD work only on large projects?
No. The principles can be applied to:
- buildings,
- infrastructure,
- industrial projects,
- and smaller operations.
Is TVD compatible with environmental objectives?
Yes. It specifically makes it possible to integrate:
- carbon,
- operations,
- maintenance,
- and sustainability
into design trade-offs.
Leanfinity offer link
Target Value Delivery / Lean Engineering
Leanfinity supports organizations in:
- implementing TVD approaches,
- optimizing project trade-offs,
- collaborative design,
- and seeking overall life-cycle performance.
Our approach aims to build projects that are:
- more coherent,
- more operable,
- and greater creators of sustainable value.
How it works
Define
Clarify the concept and its role in the operating system.
See
Make flows, constraints, gaps, and interfaces visible.
Act
Turn the principle into concrete routines, decisions, and commitments.
Learn
Measure gaps to improve the system without looking for someone to blame.
Target Value Delivery is based on several key principles.
Define project value
The project clarifies:
Define a target cost
The target cost becomes:
Design collaboratively
Different stakeholders work together:
Trade-offs become more coherent and faster.
Explore several options
TVD encourages:
Adjust continuously
The project progressively learns:
Integrate the life cycle
TVD takes into account: