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TRANSCRIPT
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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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