How to Fix a Broken Budget with Target Value Design

At the Richardson College for the Environment project we turned the design process on its head as we needed to try and meet the expectations of project stakeholders that were initially told to “Dream Big” on a not so BIG budget. The financial reality was there were only funds for a much smaller dream of $38.5M and not the $50M that was the price tag for the initial design.

Our team was tasked with finding over $10M in savings, as there was no money to be found to build the dream. We were living the "Broken Buildings Busted Budget" reality which was the book that was used to convince the U of W that we needed to adopt the Lean Project Delivery approach.

As a framework for assessing how well the process worked for the design phase, I have adapted an article that was written by Glen Ballard one of the founders of the Lean Construction Institute. My reason for doing this is that our team delivered an exceptional project and I was interested in knowing how close we came to implementing what would be considered best practices for Target Value Design (TVD). 

Project Summary

Target Value Design together with a Relational Contracting enabled the RCFE team to fix a BIG Dream project on a Smaller Dream budget and deliver an exceptional project that did achieve the project requirements within amazingly tight time and budget constraints. The team needed to get started with shoring and foundations before the project was designed, deliver a $43.8M 70% laboratory building project with 65 fume hoods, vivarium, green house with only a $750,000 contingency. This was achieved which is amazing considering that $450,000 of the contingency was used on one code related issue that emerged on an interpretation of stairwell pressurization to meet fire code. 

Our team exceeded the LEED Silver requirements, Got Gold and through Innovation and Imagination in Laboratory design deliver one of North Americas most energy efficient laboratory projects at 58% less energy that MNECB.

For the full article Lean Lab Blog

For a workshop on Target Value Design 

Lean-Lab | Target Value Design | An Assessment of the RCFE Project: "Target Value Design | An Assessment of the RCFE Project

March 2, 2016

Upon review of the TVD process, our team did pretty darn good!

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