In early 2012, Flintco was approached by a repeat client to assist them in developing a hotel prototype. We were asked to define a line item estimate that stayed within a specific budget and covered all the amenities integral to the form and function of the building before design began. Because of Flintco’s ability to produce a thorough budget before design, cost became an input to the design rather than the traditional method of design defining the cost. Development of the project from there became a collaborative lean process that minimized rework and assured conformance to the budget.

Key to the success of applying this ‘Target Value Design’ methodology is the deep level of expertise Flintco has in this project type. Flintco has successfully completed

$1.5 billion in hotel projects. This knowledge combined with Flintco’s detailed and current cost database of all the elements incorporated into the project enabled us to respond quickly and thoroughly with the requested estimate.

Applying ‘Target Value Design’Define the Constraints – The estimate Flintco prepared identified the maximum cost for the building

envelope, interior finishes, site improvements and mechanical, electrical and plumbing. The estimate defined the material and labor cost for each line item. The design team took this estimate and began designing the building.

Produces Collaboration – As with any project, there is discussion of what is needed and what is wanted. Critical systems such as structural requirements, and life

ptimizeFebruary 2013

www.flintco.com Albuquerque l Austin l Memphis l Oklahoma City l Springdale l Tulsa

Target Value Design

From your friends at Flintco, LLC

Tim Weatherford, LEED® AP, Vice President, PreconstructionFlintco, LLC

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‘Target Value Design’ is a methodology, a

practice that focuses on value to the customer

through the design process and recognizes

the importance of constraints.”

- Andre MunroMunro Consultants

Flintco, LLC

1624 W. 21st StreetTulsa, OK 74107-2749

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Optimizing Your Investment Through Preconstruction

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www.flintco.com

safety systems are easily be defined as needs, however there are options for each system that vary in cost. In collaboration with the design team, Flintco challenged all line items of the estimate. Questions were posed such as: can the use of PVC piping, in lieu of cast iron piping, above the first floor save cost that can be used to offset the cost of an architectural profile base for the corridors? The rule was simple: If the maximum cost of a line item was exceeded, then that cost would be cut from another line item of the estimate.

Streamline Design – Once the maximum allowable cost of each line item was defined, the design team was able to select materials. Typically, material selections are made and then quantity surveys and estimates are

produced, resulting in a redesign due to costs exceeding the client expectations. The ‘Target Value Design’ approach eliminates this redesign process and therefore creates efficiencies in time and cost.

Flintco is an advocate and true leader in the method of Target Value Design. This process optimizes the design schedule and estimating efforts while creating a collaborative problem-solving environment. The client benefits from a project that minimizes waste and the creation of a building where the maximum cost should not be exceeded.

Flintco, in collaboration with our design partner, has successfully constructed two of these prototype hotels to date.

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