£1.08bn of Social Value was generated from contracts worth £4.57bn, according to the third annual Social Value in Construction Benchmarking Report
The Social Value in Construction Benchmarking Report analysed almost 500 construction projects completed in 2022. The report also revealed that overall returns on Social Value in construction investments increased by over 4% from 19.55% in 2021 to 23.62% in 2022.
The report was produced by the Social Value measurement and monitoring platform Social Value Portal and SCAPE, a UK-based public sector procurement authority. The report also surveyed SCAPE’s delivery partners for the first time.
How can Social Value in construction be improved?
Several key trends emerged in the Social Value report. Collaboration stood out as an important factor in ensuring Social Value in the construction industry. The researchers also noted a growing demand for qualitative aspects of Social Value delivery.
The report suggested that focusing on sharing real-life stories and highlighting community impact would benefit Social Value. An emphasis on narrative could improve understanding and engagement with Social Value initiatives.
While Social Value has been integrated into public sector contracts for a decade, its principles are now being increasingly used in private sector contracts as well. This expansion signals a broader recognition of the importance of Social Value in business engagements.
The report also suggested a strong appetite for measuring and reporting environmental performance, highlighting its importance in the Social Value landscape.
“The construction industry was an early adopter of Social Value, and this report shows that momentum is being sustained. Companies in the sector have built Social Value into their business models and are now looking to move social value to the next stage,” said Nathan Goode, chief strategy officer at Social Value Portal.
“This third annual Social Value in Construction Benchmarking Report reveals a number of significant trends – most notably increasing focus on environmental concerns and a desire for greater collaboration and adoption of Social Value in the private sector, all of which will be interesting to monitor and report on over the coming years,” he explained.
Combining social values with business strategy
All 23 SCAPE delivery partners participated in the survey. The consensus among the partners was that achieving a balance between meeting the Social Value needs of clients and communities while aligning with corporate values was important. The survey also revealed that 45% of partners used these strategies to encourage discussion on key performance indicators (KPIs).
According to the survey, 65% of respondents reported disparity in the implementation of Social Value in construction. While some areas demonstrate innovation and leadership, others are still in the early stages of embracing Social Value practices.
Furthermore, 75% said that additional training would be useful. Specifically, they identified the need for training on the widely recognised Social Value measurement and reporting tool, the Social Value TOM System, as well as on Social Value principles in general.
“Social Value is a key criterion in SCAPE’s process when appointing delivery partners to a framework, so it’s encouraging to see that all of our partners not only fully embrace and embed Social Value within the construction industry but also have a significant appetite to do more, moving on to the next stage of the social value journey,” concluded Alison Ramsey, Social Value and performance manager.
