Four Common Questions About Target Costing
At Neenan, we believe that the best building projects are those that are both high-quality and cost-effective. That’s why we use a concept called target costing during the preconstruction phase of our Archistruction process. In this blog post, we’ll answer some common questions about target costing and how it works.
What Is Target Costing?
Target costing is an approach to design that incorporates cost as a factor from the very beginning. This allows us to create a design that meets the client’s needs and expectations while keeping costs in check.
Why Is Target Costing Important?
Traditionally, design and contracting teams have worked separately, with each side only concerned about its own interests. This can lead to inflated costs for the client. At Neenan, our design and construction teams work under the same roof. By incorporating target costing internally, we align costs and value, ensuring that the client’s best interests are always at the forefront of the project.
How Does Target Costing Work?
During the design phase, we set a target cost for the project based on the client’s budget and goals. Our design team then works to create a design that meets those goals while staying within the target cost. This allows us to identify any cost overruns early on in the process and make adjustments as needed.
What Are the Benefits of Target Costing?
The benefits of target costing are numerous. By incorporating cost as a factor from the beginning, we can create a design that meets the client’s needs and stays within their budget. This minimizes waste and ensures that the project delivers value for our clients.
Target costing is an important part of Neenan’s Archistruction process. By incorporating cost as a factor from the beginning, we can create a design that meets the client’s needs while staying within their budget. Trust Neenan’s expertise in target costing for your next building project!