The Victorian Auditor General’s Office defines value for money as “the optimum combination of quality, quantity, risk, timeliness and cost on a whole of contract and whole of assets life basis”.

The Victorian Local Government Act says councils must follow best practice rules when they buy goods or services. They should always try to get the best value for money.

The City has important rules to help guide its work. This includes that the City should:

• focus on getting the best results for the services we provide
• support long-term goals like caring for the environment, buying from local and Aboriginal businesses, and reducing waste
• work with other councils, governments and statutory bodies
• make sure they have enough money to keep running well
• always look for new and better ways to provide services to the community

All businesses that want to work with the City must be treated fairly and equally. They should all get the same information so they can give their best price or offer.

The City must check the market properly and fairly, without showing any favoritism. This helps businesses and the public trust that the process is fair and the best choice is made.

City staff are responsible for the choices they make when buying goods or services. They must follow clear rules and report to their leaders, including the Chief Executive Officer (CEO).

Staff also need to give good and honest advice to the elected Council so it can make smart decisions. City staff are responsible to ratepayers and residents.

Buying goods and services always comes with some risk. Councils need to understand these risks and make smart plans to deal with them. Risks can be small, like a supplier not delivering something on time, or big, like a major project being delayed or failing.

To manage risks well, the City needs to have backup plans and ways to reduce problems if they happen. The City also has a legal duty to be careful with money and think about the economy. All risk decisions should follow the City’s risk management policy.

When doing business, the City must always be honest and fair. Everything should be done in a clear and open way, showing strong values and doing what’s best for the community.