What is Best Value? Best value is related to the suitability of a
product or service, in financial, aesthetic, environmental and
operational terms for the life-time function that is required
of it.
Procurement has traditionally focussed on a narrow area, i.e. obtaining the lowest up front price for a product or service. Buying at the lowest market price may give the appearance of obtaining value but a low price often ensures low quality and disguises the true lifetime cost of a product or service.
The historic confusion between price and cost has tended to drive down component and build quality, together with safety standards. It has also lead to adversarial positions being taken as the client seeks to maintain the contract price and the contractor attempts to recover margin.
Cheap components may appear to cost little, but the level of unserviceable units can be high and the replacement interval very short. Higher quality components may cost more but will not fail or require replacement as often. In addition the cost of administering settlement claims, the effects of poor cash flow and the adverse safety implications of handling and operating components, are reduced.
It is worth noting that, just as best value almost certainly represents a reduction in lifetime costs, it does not necessarily represent an increase in headline price. With the application of value engineering traditional components may be replaced with better-suited materials that are either comparable in cost or less expensive.
Thankfully there is no need to rely on surmise to support the case for best value. The many demonstration projects that have been successfully completed in the last few years, which draw together the linked concepts of best value and collaborative working, details of which are available from the umbrella organisation Rethinking Construction, are proof enough that the theory works at client/contractor level. Substantial gains have been made by changing working practices and by challenging assumptions about what constitutes the construction process. For further information visit: www.constructingexcellence.org.uk
Within the new build and refurbishment roofline
market, timber was at one time the material of choice. It is now
recognised that the installed cost of PVC is comparable with
timber, but the maintenance burden is immeasurably reduced, making
PVC an attractive option for developers, Local Authorities, RSL's
and home owners alike.
Swish is able to demonstrate a wide commitment to Egan
principles in products, processes and services, which conform to
and exceed industry standards.
For further information please:
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Best Value |
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