Common use of Target Value Design Process Clause in Contracts

Target Value Design Process. The Parties acknowledge that Target Value Design is intended to make explicit that value, cost, schedule, and constructability (including work structuring) are basic components of the design criteria. The intent is to design the Project to a detailed estimate. The Core Group shall develop written guidelines or protocols for use with Target Value Design principles throughout the design process. At a minimum, these protocols shall address the following: 10.4.1 method to establish initial target costs for major components and systems; 10.4.2 method for determining other value elements of Target Value Design; 10.4.3 schedule for selection of Architect’s Consultants, Subcontractors, Suppliers, Owner’s Consultants and separate contractors during design; 10.4.4 method for forming and meeting structure for cross-functional teams (clusters) of designers and builders for major components and systems of the Site and structures; 10.4.5 method for aligning all IPD Team Members behind the objective that the Target Cost (as adjusted in accordance with this Agreement) not be exceeded without express approval of Owner; 10.4.6 method to assure continuous cost analysis and reporting procedures within the cross- functional teams (clusters) for monitoring estimated costs against target costs; 10.4.7 creation of a target value team comprised of the cross-functional/cluster leaders to meet regularly and frequently, with responsibility for evaluating Target Value Design tradeoffs and opportunities, (including function/cost trade-offs) and authority to direct value engineering and adjustments of the component/system costs up or down to maintain total project target cost; and 10.4.8 the frequency of preparing the milestone roll-up estimates described in Section 10.3.