Value For Money

We always talk about value for money when the procurement of services is evaluated. For example, if an electrical appliance can perform multitasks and having longer life span, then we will think that it is worth the money spent. Similarly, a product can deliver performance beyond the expectation will definitely cause a very pleasant surprise. However, money for value is very subjective depending on how you evaluate it and what kind of parameters are taken into consideration.

For businesses, previously the only consideration is perhaps the bottom line of profit. The bigger the margin, the higher the value is. However, nowadays with higher demand of CSR from the public, apart from profit making, public concerns that affect the corporate and brand image of a company will also be taken into consideration. These include environmental and social objectives of the company such as their stand and ethic on sustainable environmental management, disabled people, child labour, fair trade, youth, gender equity and etc.

For local authorities, value of a service or development project is obviously cannot be measured fiscally but together with other socio-economic consideration. Many of us know that building a community hall is financially not viable as the return of investment is much longer. Similarly providing the hawkers centre or wet market or stadium are not business driven but rather fulfilling the community needs. Thereby, it is arguable for taking only financial parameter as the sole consideration in measuring whether a project is value for money or not. Other parameters such as community need, social and value enhancement, community development, political mileage, institutional responsibilities are equally important. However, these parameters are qualitative in nature and subjective depending on circumstances. It is a difficult task for quantifying these parameters. I presume, a more structure and inclusive way of measuring is required.