1.10 The Scottish Public Finance Manual sets out the general principles which apply to the public sector's acquisition of goods and services, including works, and sets out policy on procurement which is to achieve VfM having regard to propriety and regularity. Public sector bodies which are subject to the Scottish Public Finance Manual are also subject to the mandatory policy and procedures of the SG Construction Procurement Manual in relation to non-privately financed works projects.
1.11 The guidance should be applied in conjunction with the HM Treasury Green Book, which details the approach which should be adopted in relation to option appraisal, and the Quantitative VfM Assessment Guidance. It should also be applied in conjunction with sector specific guidance, such as the Scottish Government Health Directorate's Scottish Capital Investment Manual ("SCIM"), available online at: http://www.pfcu.scot.nhs.uk/
1.12 It is important to note that VfM is a relative concept which requires comparison of the potential or actual outcomes of alternative options. Where appropriate this is reflected in assessments based on a relative comparison between conventional procurement and privately financed options (in whole or part) or on different available private finance routes. This requires a high degree of estimation, especially where experience and/or data on similar projects procured under different procurement routes is limited.
1.13 Care should be taken to ensure that VfM assessments consider whether markets have changed or matured, and that the most appropriate way to procure a project, or the best terms which can be achieved, may change over time. Therefore, care must be taken when comparing and benchmarking current situations to historical information and data.