Namadi, S., Pasquire, C., and Manu, E. (2017). “Discrete Costing Versus Collaborative Costing.” In: LC3 2017 Volume II – Proceedings of the 25th Annual Conference of the International Group for Lean Construction (IGLC), Walsh, K., Sacks, R., Brilakis, I. (eds.), Heraklion, Greece, pp. 3–10. DOI: https://doi.org/10.24928/2017/0341 DISCRETE COSTING VERSUS COLLABORATIVE COSTING Sa’id A. Namadi 1 , Christine Pasquire 2 , and Emmanuel Manu 3 Abstract: The UK construction industry has witnessed a recent shift towards integrated and collaborative approaches. Such collaborative efforts include the use of integrated systems like BIM, lean and innovative procurement options which are now reshaping project delivery systems. However, in the UK, most efforts have focused primarily on the conventional project management system, which is coherent and contract-based and has brought the separation in the processes of costing/design and production. In fact, cost and design processes are still treated as independent and separate functions which are carried out discretely within the current project delivery system. This neglect, and the lack of a holistic and collaborative approach in costing, arguably accounts for much of the cost overrun that is still prevalent in the UK industry. Traditionally, cost management has been the chief duty of Quantity Surveyors (QSs) in the UK. Recently, Target Value Design (TVD) has emerged as a management approach under the lean philosophy that aims to deliver exactly what the customer needs in terms of value within stipulated project constraints. The technique is aimed at making the budget become an input in the design and decision making process rather than an outcome of a design. The growth of collaborative approaches such as TVD opens new opportunities for project participants to deliver more value for clients and work collaboratively. This paper reports on the literature review that aimed at developing a framework to improve the current cost management practice towards a more collaborative system against the existing discrete form of costing that inhibits collaboration. Keywords: Discrete Costing, Collaborative Costing, Target Value Design, Cost Management, Quantity Surveying. 1. I NTRODUCTION For many years now, UK construction industry has had several reports and recommendations by industry practitioners and government, stressing on collaborative working, value addition and the use of collaborative approaches to streamline design and construction processes (Egan, 1998, 2002; Latham, 1994). Among other targets set by the industry in the (Construction 2025 report HM Government, 2013) were cost reduction in the initial cost of construction and the whole life cost of built assets. In view of that, the UK government are now advocating for more collaborative approaches where project actors and processes are fully integrated (Sunil et al, 2013). Lean construction as a collaborative system has been proposed to the industry as an antidote to many of the challenges faced, that aimed at transforming construction model 1 PhD Research Student, Centre for Lean Projects, School of Architecture, Design and Built Environment, Nottingham Trent University, UK, +44(0)7592030388 sa’id.ahmednamadi2015@my.ntu.ac.uk 2 Professor, School of Architecture, Design and Built Environment, and Director Centre for Lean Projects, Nottingham Trent University, UK, +44(0) 115 848 2095 christine.pasquire@ntu.ac.uk 3 Senior Lecturer, School of Architecture, Design and Built Environment, Projects, Nottingham Trent University, Nottingham NG1 4FQ, UK, +44(0) 7735083823 emmanuel.manu@ntu.ac.uk 3 | Proceedings IGLC | July 2017 | Heraklion, Greece