Measuring value for money on ministry of defence minor new works projects

For the UK Ministry of Defence, value for money (VFM) provides a key measure essential to proving probity in the expenditure of public money. The research is specifically focused upon Minor New Works (MNWs) in the UK defence estates sector, managed by Defence Estates (DE). Historically, a significant annual expenditure of approximately 10% of estate budget is spent on minor new works. Assessing VFM on minor new works projects presents a major challenge as it is in the nature of small projects to be fragments of existing operations with unique factors and as a result, there are few financial and technical benchmarks that can be reliably used. The research and discussion explores the drivers behind minor new works on the MOD estate and ascertains whether there are ways that VFM can be measured in a uniform and practical manner. There are five key elements in DE’s two-stage MNW VFM method. Although there is an element of qualitative assessment linked to identify and interpreting users' key drivers and cost benchmarking, the approach is dominated by hard measures. Further development of the method should emphasize softer aspects such as stakeholder attitudes and risk sharing.