Best value
The term ‘value’ relates to the benefits brought by something in relation to the resources needed to achieve it. Value for money (VfM), relates to the optimum balance between the benefits expected from something and the resources expended in its delivery. Value for money is sometimes expressed as a ratio between a function and the whole life cost for that function.
The similar term ‘best value’ (BV) refers to the most advantageous combination of the whole-life cost, quality (fitness for purpose) and sustainability (in terms of the economic, social and environmental benefits) available to meet client requirements.
Best value is often referred to in relation to the procurement system introduced in the UK by the Local Government Act 1999, which charged local and national government with a general duty of obtaining best value by ‘…securing continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness.’
The Act was introduced as a manifesto commitment of the Labour government following years of compulsory competitive tendering under the previous Conservative government, and was intended to improve the quality and delivery of public services by preventing local and national government clients simply opting for the lowest cost options, as this did not always provide the optimum long-term solution.
An important aspect of best value procurement is the examination of prospective suppliers against a range of pre-defined criteria. Values can be assigned to factors such as price, past performance, relevant experience, technical ability, sustainability, health and safety, innovation, resource availability, management skills and systems, proposed methodology, and so on. The bid evaluation criteria and their respective weightings give expression to the perception of what represents the best value to the client. The supplier achieving the highest score may then be appointed.
However, the best value approach was seen by some to increase bureaucracy, and in 2011, the coalition government introduced guidance that went some way to watering down the requirements of the Act.
[edit] Related articles on Designing Buildings Wiki
- Appointing consultants.
- Auction theory.
- Balanced scorecard.
- Best value procurement.
- Bid strategies.
- Budget.
- Competitive tender.
- Construction contract.
- Cost vs price.
- Cost-benefit analysis in construction.
- Expression of interest.
- Invitation to tender.
- Key performance indicators.
- Mid tender interview.
- Most Economically Advantageous Tender (MEAT).
- OJEU.
- Overcoming difficulties in value management.
- PAS 91.
- Pre tender interview.
- Price.
- Procurement route.
- Public procurement.
- Reverse auction.
- Selection criteria.
- The benefits of e-procurement in construction.
- Tender documentation.
- Tender evaluation.
- Tender processes.
- Tender.
- Unit price.
- Value engineering.
- Value management techniques.
- Value management.
- Value planning.
- Variant bid.
- Whole life costs.
- Why the lowest price isn't sustainable.
Featured articles and news
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).
Ebenezer Howard: inventor of the garden city. Book review.
The Grenfell Tower fire, eight years on
A time to pause and reflect as Dubai tower block fire reported just before anniversary.
Airtightness Topic Guide BSRIA TG 27/2025
Explaining the basics of airtightness, what it is, why it's important, when it's required and how it's carried out.
Construction contract awards hit lowest point of 2025
Plummeting for second consecutive month, intensifying concerns for housing and infrastructure goals.
Understanding Mental Health in the Built Environment 2025
Examining the state of mental health in construction, shedding light on levels of stress, anxiety and depression.
The benefits of engaging with insulation manufacturers
When considering ground floor constructions.
Lighting Industry endorses Blueprint for Electrification
The Lighting Industry Association fully supports the ECA Blueprint as a timely, urgent call to action.