Value for Money
Business Guide | June 2018
Value for money is the effective, efficient, and economic use of resources, which requires an evaluation of relevant costs and benefits along with an assessment of risks, nonprice attributes, and/or total cost of ownership as appropriate.
This guidance note discusses the principle of value for money (VFM) and its relevance and application to the different phases of the ADB procurement cycle. It also introduces “life cycle costing,” which takes into account not only the acquisition cost, but also a combination of paid price plus the cost of operating and maintaining the goods or services procured. The guidance note provides a matrix of the relationship of VFM with other ADB core procurement principles to give a better understanding of how VFM works with the other principles.
Video: How do Value for Money and Quality fit within ADB's core Procurement Principles?
- Strategic Procurement Planning and Value for Money
- Specifications and Value for Money
- Evaluation Criteria and Value for Money
- Contract Management and Value for Money