It is said that beauty is in the eyes of the beholder! The same could be said of value. What is value to me may be meaningless to you, depending on where you sit, and what your expectations are. Measuring value is therefore a big dilemma.

In the public sector especially, measuring value is one of the most contested area between the government and the governed (citizens). The government will try to present the projects delivered as of direct and great value to the citizens; most of the times overstretching the value delivered.

Where citizens are more enlightened and informed, this is countered as mere public relations. This could be because there are no standards of how that value can be measured. And even if there were standards, does a social contract exist? And if it exists, is it mutually understood by both parties? 

So, what is value for money?

Value for money has been defined as a utility derived from every purchase or every sum of money spent. Value for money is based not only on the minimum purchase price (economy) but also on the maximum efficiency and effectiveness of the purchase.

The concept of Value for Money (VfM) in everyday life is easily understood as "not paying more for a good or service than its quality or availability justify”. In relation to public spending, it implies a concern with economy (cost minimization), efficiency (output maximization) and effectiveness (full attainment of the intended results). It must also support the value of equity.

Value for money is used interchangeably with synonyms such as: