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
Heat pump announcements, what homeowners need to know
An 'ultimate guide to heat pumps' from a heating company.
Construction contract awards reach £7.1bn in February
Their highest level in seven months.
The journey to sustainability in heritage
Research is the key to better understanding.
Heritage approaches to adaptation, mitigation and loss.
Bridging the gap between policy, finance and installation.
Development on brownfield land
Definition, background, policy and the latest consultation.
With the Design Framework for Building Services.
Retrofit of Buildings, a CIOB Technical Publication
Pertinent technical issues, measures and the roles involved.
ECA joins HSE campaign to support mental health
Working Minds’ five simple steps based on risk assessment.
Mental health in the construction industry
Mental health issues in brief with related articles.
Transitional arrangements, Building Control and the BSR.
For pre-October buildings with substantial progress by April.
How to write an inspection and test plan
ITPs for quality control and assurance particular elements.
Why quality counts in domestic ventilation systems
From products, to systems to the installation.
Empowering the Future with CIOB Academy
Lifelong learning, upscaling, and reskilling for the built environment.
Winners of the 2024 ASBP Awards
Project, Product and Initiative according to the 6 pillars.