In tender evaluation, what is the significance of "value for money"?

Value for money in tender evaluation is crucial because it emphasizes the importance of selecting the best overall option when considering both cost and quality. This concept encourages decision-makers to look beyond simply the lowest price and instead evaluate what they are actually getting in terms of quality, performance, and additional value that may be included in the bid. The goal is to achieve the optimal balance where the benefits derived from the products or services justify the expense incurred. This holistic approach leads to better long-term outcomes, as it supports decisions that may provide better durability, efficiency, and satisfaction, which can ultimately result in enhanced overall project success.