Target Value Design Clause Samples
The Target Value Design clause establishes a process for setting and managing a project's cost objectives during the design phase. It typically requires the project team to collaboratively define a target budget and then design the project to meet that financial goal, often using iterative cost modeling and value engineering. This clause helps ensure that the final design aligns with the owner's budget constraints, reducing the risk of cost overruns and promoting efficient resource allocation.
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Target Value Design. Target Value Design is a design discipline that requires project values, cost, schedule, and constructability to be basic components of the design criteria, and that uses cost targets to drive innovation in designing a project to provide optimum value to the Owner. The Target Value Design goals are defined at the onset of the Project, continuously reinforced by Architect, Owner, and Contractor for the duration of the Project, and used to guide the design process to a successful conclusion. The Owner’s needs and budget goals are clearly understood very early in the design process and the Owner’s budget goals define the goals and progress of the design.
Target Value Design. Design Build Entity shall design the Project utilizing the Target Value Design approach. Design Build Entity shall prepare all cost estimates and budgets required by the Design Work consistent with the TGMP/GMP Preparation Form, with appropriate detailed backup information commensurate with the stage of design. Design Build Entity shall establish target cost values for components of the building in accordance with Uniformat and utilize the principles of Target Value Design throughout the Design Work to ensure estimates do not exceed the target costs or the Target GMP. Utilizing the Target Value Design approach, Design Build Entity shall update the estimated cost of Construction Work in accordance with Uniformat and the TGMP/GMP Preparation Form at reasonable intervals, not to exceed every three (3) weeks. Design Build Entity shall track and report Uniformat values in a manner and format approved by Judicial Council. Design Build Entity acknowledges and agrees that the Target Value Design approach is integral to the development of the cost of the Construction Work, and that Design Build Entity’s failure to comply with this requirement shall constitute a material breach of the Agreement.
Target Value Design. The IPD Team Members will provide Target Value Design support services throughout development of the design. Depending on the stage of document development, the scope and nature of this ongoing effort may change. The specific estimates listed below are "roll-up estimates" or "gate estimates" to provide Owner the opportunity to confirm that the entire Project, at those milestones, is proceeding within the approved budget parameters. Those estimates shall be the by-product of the continuous Target Value Design process and are not intended to be performed by progressing the documents to a certain stage of development and then requesting that the IPD Team provide pricing information. The IPD Team shall provide ongoing cost information and estimating of portions of the Services and Work as the Contract Documents are developed, and such other cost exercises that the Core Group deems advisable. Formal estimates shall include amounts for escalation in labour and material prices in the Design and Procurement Phase and the Construction Phase ("Escalation"). In connection with the establishment of the EMP, the initial Core Group may determine to fix the Construction Phase Escalation associated with certain commodities by use of commonly accepted price indexes or other price-based measures.
Target Value Design. The term “Target Value Design” means a design process that requires Design Build Entity to include project values, cost, schedule, and constructability
Target Value Design. Design Build Entity shall design the Project utilizing the Target Value Design approach. Design Build Entity shall prepare all cost estimates and budgets required by the Design Work consistent with the TGMP/GMP Preparation Form, with appropriate detailed backup information commensurate with the stage of design. Design Build Entity shall establish target cost values for components of the building in accordance with Uniformat and utilize the principles of Target Value Design throughout the Design Work to ensure estimates do not exceed the target costs or the Target GMP. Utilizing the Target Value Design approach, Design Build Entity shall update the estimated cost of Construction Work in accordance with Uniformat and the TGMP/GMP Preparation Form at reasonable intervals, not to exceed every three (3) weeks. Design Build Entity shall track and report Uniformat values in a manner and format approved by Judicial Council. Design Build Entity acknowledges and agrees that the Target Value Design approach is integral to the development of the cost of the Construction Work.
Target Value Design. (1) It is the intent of the Parties to establish and support a rigorous Target Value Design process at every step in the Project evolution. For the purposes of this Agreement, “Target Value Design” means a management practice by the Developer that drives the design, schedule, and financing strategy to deliver the Project for a Total Capital Cost that is expected to fall within a range of $100 million to $130 million and average annual financing costs of $8 million to $9 million (“the Affordability Range”).
Target Value Design. Owner anticipates that CM/GC and the Trade Contractors will provide Target Value Design support services throughout development of the design. Depending on the stage of the document development, the scope and nature of this ongoing effort may change. The listing of the specific estimates below are specific “roll up estimates” or “gate estimates” to provide Owner the opportunity to confirm that the Work, at those milestones, is proceeding within the approved budget parameters. Those estimates shall be the byproduct of the ongoing target value pricing process and are not intended to be performed by progressing the documents to a certain stage of development and then requesting that the CM/GC and the Trade Contractors provide pricing information. As noted, CM/GC and the Trade Contractors will also be expected to provide ongoing cost information and estimating of portions of the Work, systems being considered, details as they are developed, and other cost exercises that the Core Group deems advisable. Formal estimates should not include a Design Contingency, but should include CM/GC’s Construction Phase Contingency, and a contingency for Escalation in labor and material prices based upon the anticipated construction schedule.