Target Value Delivery is a project management methodology born out of the Lean Construction movement that proposes designing to the client's budget from the very start of a project. Unlike the traditional model — where design comes first and cost is calculated afterward — Target Value Delivery establishes a target cost as the starting point. Design, planning, and execution are therefore developed in alignment with that predefined financial constraint.
What is Target Value Delivery?
Target Value Delivery (TVD) is part of the Lean system applied to projects, promoted by the Lean Construction Institute. Its central principle is to treat cost as a design constraint. In other words, the budget is not adjusted at the end; instead, it guides every decision from the earliest stages. This approach is also typically integrated with collaborative delivery models such as Integrated Project Delivery (IPD). In the United States, organizations like Sutter Health were pioneers in applying it to complex hospital projects.
