{"id":28678,"date":"2022-03-10T14:34:47","date_gmt":"2022-03-10T12:34:47","guid":{"rendered":"https:\/\/exigo.dk\/?page_id=28678"},"modified":"2025-08-07T09:24:18","modified_gmt":"2025-08-07T07:24:18","slug":"targetprisstyring","status":"publish","type":"page","link":"https:\/\/exigo.dk\/en\/ydelser\/bygherreraadgivning\/targetprisstyring\/","title":{"rendered":"Target Price Management"},"content":{"rendered":"

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Target Price Management<\/h2>\n

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Target Price Breakdown and Management<\/h3>\n

To explain the problem that target price management solves, examining how a traditional construction project is tendered and what should be changed is necessary.<\/p>\n

Traditionally, the client defines a construction project in collaboration with the architects, and then the contractor is consulted afterward\u00a0<\/span>\"What is the price?\"<\/strong>\u00a0<\/span>An approach that leaves the client to\u00a0<\/span>\"hope\" that the price aligns with the budget<\/strong>\u00a0<\/span>and that there won't be any cost overruns during execution (which often happens when the project is awarded to the lowest bidder).<\/p>\n

With target price management, the client establishes a budget along with a set of goals and desires for the construction. Subsequently, the architect and contractor (as a unified team) are consulted.\u00a0<\/span>\"How much can I get for my budget?\"\u00a0<\/span><\/strong>An approach that\u00a0<\/span>ensures the price aligns with the budget<\/span>,<\/strong>\u00a0<\/span>and that the project is adjusted to fit the budget so that it can be designed, constructed, and delivered without additional costs.<\/p>\n

[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.22.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”http:\/\/exigo.dk\/wp-content\/uploads\/2023\/09\/Target-800-705×403-1.png” alt=”Targetprisnedbrydning og -styring” title_text=”Targetprisnedbrydning og -styring” _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.22.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.22.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

Data-driven decision basis<\/h3>\n

The method requires ongoing project breakdown and valuation, including potential additions and exclusions, so decisions can be based on accurate data rather than a gut feeling of whether the budget is sufficient.<\/p>\n

At the\u00a0<\/span>DTU Building 208<\/a>\u00a0<\/span>Exigo has been responsible for the ongoing project, target price breakdown, and associated data processing and communication to support the client's prioritization decisions.<\/p>\n

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Adapting the project and building model detailing<\/h3>\n

The process follows the detailing of building models and is initially based on successive budgeting, transitioning into continuous concrete pricing (actual project quantities and unit prices). Later, this can serve as the basis for precise progress, advance assessments, and final settlement with the contractor.<\/p>\n

The transition occurs continuously as the project becomes more defined. Therefore, it's possible to manage well-defined work packages alongside undefined ones that are still open to changes and alternatives.<\/p>\n

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For instance, the scope and cost of demolishing existing buildings are likely known early in the project. At the same time, material choices depend on budget allocation and, therefore, remain open well into the design and planning phases.<\/h4>\n

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Visual and dynamic overview<\/h3>\n

You receive a link to a dashboard where the target and cost breakdown are presented for the project's subcomponents. The dashboard provides a transparent overview of how the finances are distributed in the project, forming the basis for the client's prioritization decisions. In other words, data-driven additions and exclusions can be made.<\/p>\n

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Why is target price management a great idea?<\/h3>\n

Target price management involves the early involvement of the contractor in the design and planning phases to ensure the implementation of efficient and achievable solution models. This way, risks related to the construction execution are identified and mitigated early in the project.<\/p>\n

Concrete benefits of target price management:<\/strong><\/p>\n