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Supply chain management
Traditional construction costing Target costing
Costs determine price Price determines costs
Performance, quality and profit (and more rarely waste and inefficiency)are the focus of cost reduction Design is the key to cost reduction, with costs managed out before they occurred
Cost reduction is not customer driven, nor project/design team driven. It is driven by separate 'commercial' people. Customer input guides identification of cost reduction areas
Quantity surveyors are responsible for cost reductions Cross-functional teams manage costs
Suppliers involved late in design process Early involvement of suppliers
No focus on through-life cost Minimises cost of ownership for client and producer