To achieve value for money when purchasing, the benefits derived from goods and services need to be balanced against the 'total cost' of buying and using them.

The 'total cost' includes the purchase cost, maintenance and running costs, costs of disposal, as well as the cost of the buying process itself. Therefore, it is not always best value for money to buy the cheapest product or service.

Heads of School and Directors of Professional Service should take these factors into account when purchasing to ensure that the University gets the best deal overall.

Some types of purchase are subject of specific rules to ensure the best use of University funds. See our Buyer's Toolkit - Existing suppliers and agreements page for more information on this.

Working out the value of a purchase

When estimating the value of a purchase you should:

Include any applicable VAT - In the vast majority of cases the University cannot recover VAT incurred on its purchases, therefore the cost to the University and the commitment against a budget will be the VAT inclusive amount.
Include the cost of the full length of contracted services - If a contract is for continuous service but has no defined end date, then four years should be assumed.

Different purchasing procedures apply dependent on the value of your purchase. See our Buyer's Toolkit - How to find the right supplier page for more information on this.

Finance Division

Purchasing Goods and Services

Useful policies, forms and guidance

Finance systems access and financial literacy training

Achieving value for money

Working out the value of a purchase