Target costing is a strategy developed by the industry to systematically improve product quality in order to deliver more value to customers, by considering the price limits established by the market and maintaining strict cost control. Recent studies have suggested ways to adapt this strategy to the construction industry, in spite of the unique characteristics of building production. This paper presents an analysis of the applicability of target costing in the conceptual design stage of low-income housing projects. This investigation was based on a case study developed in the Residential Leasing Program, from Brazil, in which construction companies are involved since the early stages of project planning. Moreover, some secondary data generated in two previous case studies, focused on the project business supply chain and on the product development process of this Program. The results indicate that target costing is applicable in this context, as it introduces mechanisms for taking onto account clients requirements, which are not normally met in low-income housing projects in Brazil due to the limited funding available. Finally, a set of guidelines for improving the design process is proposed, with the aim of enabling the application of target costing in the context of low-income housing projects.
Target costing; Social housing; Building design; Value management
