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03 June 2019JITEN CHAUHAN (RLB) AND MARK BOLGER (SPC)

RICS

DEMONSTRATING SOCIAL VALUE IN THE BUILT ENVIRONMENT

Introductions

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1. Background to Social Value and the legislation

2. Emerging Social Value Govt themes

3. Calculating Social Value

4. Procuring for Value

5. Embedding Social Value (RIBA Stages)

6. RLB Case study

7. Best Practice in the Built Environment

AGENDA

Definition of Social Value

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DEFINITION OF SOCIAL VALUE

Social Value is underpinned by understanding the social, economic and environmental impact including evidencing the value this creates for people, communities, businesses and economies.

(Summary of the Social Value Act 2012)

Social Value is embedded in planning, procurement, delivery and maintenance operations of Built Environment projects

Background to Social Value

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BACKGROUND TO SOCIAL VALUE

▪ Public Services (Social Value) Act 2012

▪ Public Sector organisations adopting and embedding Social Value

▪ Reviews of the legislation

▪ ‘Prove it’ era of Social Value is now in ‘full effect’

▪ Social Value is now part of normal business

▪ Social Value throughout all of the RIBA stages not just Stage 5

▪ ‘Procuring for Value’

Social Value ACT 2012

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SOCIAL VALUE ACT 2012

Consider the wider benefits to people communities and society

Economic Crisis

VfM and Added Value from Public Sector Procurement

Comercial sector needed solutions (RIBA Stage 5)

Austerity

Momentum 2015

Reviews since 2018

2019 changes to the Legislation

Changes to the Legislation

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CHANGES TO THE LEGISLATION

Cabinet Office Consultation Document 2019

Minimum 10% Social Value weighting on every Public Sector Contract

Diverse Supply Chains

Skills and Employment

Inclusion, Mental Health and Well-Being

Environmental Sustainability

Safe Supply Chains

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PROCURING FOR VALUE SOCIAL VALUE

Recommendation 1: Value and Procurement (Page 15)

1. Whole-life Value2. Capital and Operational 3. Digital effectiveness, BIM and data capture4. Use of standard components and pre-manufactured

value5. Design Quality Indicators (DQI’s)6. Collaborative behaviour and supply-chain integration7. Apportionment of risk and reward8. Government Soft Landings9. Social Value of the construction process10.Health, Safety and Well-being during construction11.R&D and Innovation

• Supply chain incentivisation for delivery innovation• Sharing of innovation risk between client and

suppliers

PROCURING FOR VALUE (PFV)SOCIAL VALUE

RLB is leading the development of the PfV Value Model. This assesses the cost and puts a monetary value to broader benefits – such as social value - rather than the current qualitative written submissions.

Procurement Behaviours

Predictability

The Value Model

The Digital Agenda

Outcome based Procurement to drive capital programme delivery and lifetime performance

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Demonstrating Social Value in the Built Environment (RIBA Stages)

0 - 1 Forecast

Forecast based on outline budget, location and duration

0

Strategic Definition

1

Preparation & Brief

2

ConceptDesign

3

Developed Design

4

Technical Design

5

Construction

6

Handover & Close Out

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In Use

2 - 4 Forecast

Forecast based on designs, detailed costs, location and duration.Map wider outcomes Develop a Social Value strategyIntroduce Operational Asset Value

Procurement

Social Value KPIs and Targets Defined

Embed the Social Value Strategy within the procurement documentation

Provide the framework for monitoring, evaluation and reporting social value

5 - 6 Evaluate

Finalise Social Value KPIs and targetsMonitor, evaluate and report on the social value delivered during the contract

7 User

Monitor, evaluate & Report User experience and Social Value

ProductionInformation

Tender:Documentation

Tender:Action

Preconstruction

EMBEDDING SOCIAL VALUE

SOCIAL VALUE CALCULATOR

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UNDERSTANDING IMPACT & CALCULATING SOCIAL VALUE

Cost Benefit Analysis (HM Treasury Green Book)

Social Return on Investment (Cabinet Office SROI)

Environmental Impact Analysis (SDG’s)

Economic Impact Analysis

• LM3 (nef)• Gross Value Added (ONS)

Operational Asset Value (Impact Modelling)

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BEST PRACTICE IN THE BUILT ENVIRONMENT

AFFORDABLE HOUSING PROJECT

New Jobs: 148

Apprenticeships: 39

Remaining Labour Force: 593

Work Placements: 2

Full Time Annual Equivalent: 781

New Union Wharf, Isle of Dogs, London E14

Employer’s Agent and Cost Management

Contract start 2014, Contract completion 2021, £87m

Social Value Outcome

Total Impact £176m Overall Ratio £1: £2.02

SROI £23mEconomic Impact £153m- LM3 £111m- GVA £42m

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BEST PRACTICE IN THE BUILT ENVIRONMENT

Corporate Social Value Policy and Strategy

Understanding your own impact as a business

Corporate Calculations feeding into you business strategy

Case Studies of a range of projects

Develop your Social Value offer for your clients

The 10% Social Value weighting will get higher (as much as 35%)

FURTHER INFORMATION

Available to download on www.RLB.com www.socialprofitcalculator.co.uk

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