Common use of Target Value Design Clause in Contracts

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.