"Value for money is the optimum combination of whole-life cost and quality to meet the user's requirements. This means that awarding contracts on the basis of lowest price tendered for construction works is rarely value for money; long-term value over the life of the asset is a much more reliable indicator. It is the relationship between long-term costs and the benefit achieved by clients that represents value for money."
"The Royal Academy of Engineering reports that the typical costs of owning an office building for 30 years are in the ratio of 1 (construction costs): 5 (for maintenance costs): 200 (for costs of the operation being carried out in the building, including staff costs). Consultancy fees account for 10-15% of the construction costs (ie 0.1-0.15) when compared to the 200 operational cost."
Extracts from "Achieving Excellence in Construction Procurement" "Guidance Booklet 07: Whole-life costing and cost management"
For more information see the OGC's Achieving Excellence Series