Factor-based target cost modelling for construction projects

Target value design (TVD) principles set the main guidelines for the design-estimate process that allow the efficient exploration of available construction alternatives, thereby helping construction companies to reduce cost-to-design, cost-to-build, and improve the quality of construction projects. The successful application of TVD requires a clear understanding of the interactions among construction components. The proposed target cost modelling approach introduces an algorithmic factor-based framework to advance TVD that supports the design-estimate process by examining the relationships among building components, their direct and indirect impact on project overall cost and value. Construction factors control compatibility and performance analysis among available construction alternatives. Costing factors contribute to the development of mathematical costing models capable of automatically calculating the cost of compatible alternatives. Finally, rule-based analysis, developed under an appropriate programming environment, executes alternative value analysis to develop a detailed estimate with an improved overall value for construction projects.