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Simply put, the concept of ‘social value’ in construction refers to the potential benefits a project can offer both the local and wider community. These benefits can be long and short-term,...
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Simply put, the concept of ‘social value’ in construction refers to the potential benefits a project can offer both the local and wider community. These benefits can be long and short-term, ranging from employment or housing to public amenities and sustainability. While there isn’t a single clear metric to track the social value of a project, these brief examples are an initial insight into what this could entail:
What you want to consider is how the project will not only fulfil clients’ requirements but also engage with the wider community to address its needs.
Over the last decade, the construction industry has been increasingly scrutinised in a bid to improve its social and environmental impact. This is evident in new sustainability regulations, pushes for construction projects to support SMEs and the need for a proactive approach to building safety. All of these examples indicate a growing emphasis on social responsibility, backed not only by governmental and regulatory bodies but the general public. McKinsey has reported that society’s expectations for businesses are increasing, which has been one of the biggest influences for the shift towards social value in construction projects.
From January 2021, construction contracts must include a social value plan in their bidding process that outlines how social value will be delivered during the contract. This is still a relatively new concept in construction, but it’s one that contractors need to come to terms with to remain both compliant and competitive.
Of course, aside from achieving regulatory compliance and driving successful bidding, social value is important in construction projects simply because of the resultant impact on communities. Ultimately value should be a two-way street, with construction companies benefitting economically while offering something positive in return.
Social value needs to be incorporated into both the design process and construction phase so that it delivers during and after the project is completed. It should also be tailored to clients’ visions so they can realise the social aims they want to achieve. For example, tech companies can be energy-intensive, so they may not only want their buildings to create work opportunities, they also want to minimise carbon emissions. This could mean incorporating bicycle paths, solar farms, and water waste reduction systems into the building’s design so they can offset their energy usage. Here are some key considerations when developing the social value aspect of your project proposal.
There is no widely-accepted or standardised model for measuring social value – much like the issues around measuring corporate social responsibility. After all, social value is subjective and nuanced. This means it is difficult to quantify whether some goals are objectively more important than others – never mind how to measure these goals over the lifespan of a construction project.
Currently, the best option available is Social Return on Investment (SROI). This involves establishing the scope of the project, identifying key stakeholders and mapping outcomes through community engagement and consulting with relevant organisations.
Then it’s time for gathering evidence on outcomes, which can be achieved in various ways but primarily through detailed surveys. Each outcome will have its projected social value, which can be determined by using the following criteria:
Calculating the SROI, or social return on investment is quite complex, but online tools such as a Local Government Association Evaluation tool can be very helpful for turning data into digestible statistics and outcomes. You can also use this tool to generate reports on the social value of the project, which is important both for evaluating its success in terms of your chosen goals and for informing future projects.
Practical examples of social value in construction can be a good source of inspiration, especially if this is unfamiliar territory for architects or construction companies. Here are some examples to help build your social value model:
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Simply put, the concept of ‘social value’ in construction refers to the potential benefits a project can offer both the local and wider community. These benefits can be long and short-term,...
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