Hub Industry insights Why social value in construction is soaring in the UK Why social value in construction is soaring in the UK Since the turn of the decade, and in particular, in the last 12 months, the impetus and significance of social value in construction has risen insurmountably Will Jack Marketing Coordinator and Content Producer 16 August 2024 14 min read Since the turn of the decade, and in particular, in the last 12 months, the impetus and significance of social value in construction has risen insurmountably and continues to do so. Research by SCAPE reveals that the construction industry delivered £1.09 billion of social and local economic value, providing a 30.33% return on investment. This marks a significant increase from the previous year’s 19.55% ROI, indicating a growing commitment within the industry to generate positive social change through construction projects. So, what is social value? Why is it important, and what’s behind its rise in the construction industry? We’ll also take a closer look at the benefits it brings to communities and construction firms, and provide practical tips on boosting your projects’ social value impact. Social value explained Social value is the support and realisation of economic, environmental, and social well-being improvements and initiatives as a central outcome of buildings, projects, and infrastructure that improves the quality of life for individuals and communities. In 2012, the Social Value Act was introduced in the public sector, which required the sector to ensure the maximum social value for the local community from its spending. Social value has extended beyond the public sector. It sets construction and infrastructure businesses apart when integrated wholly and continually in the procurement process, ensuring that any project undertaken has a positive and sustainable legacy for the community and environment it exists in and serves. At DPL, we are completely committed to ensuring every project we undertake has social value at the heart of the procurement process to maximise its positive impact on both the client and the people around it. The rise in social value projects Social value in UK construction is soaring due to a combination of factors reflecting evolving priorities in the industry and society. These include legislative and policy drivers, government initiatives, consumer and investor demand, and the business and reputational growth that results from positive brand alignment. Social value makes sense from an environmental, economic, and commercial perspective. The benefits of social value on communities Social value projects in the community can produce various benefits, from economic to environmental and social. Benefits can be short and long-term and aren’t always easy to measure and prove. However, here are some of the ways social value in construction can benefit communities: Supporting the local economy By prioritising local procurement and hiring local subcontractors, construction projects can inject significant financial resources into the local economy, supporting growth and providing much-needed stability for small and medium-sized businesses in the area. Providing job opportunities Construction projects that focus on social value often create numerous job opportunities for local residents. Depending on the size and nature of the project, this can help reduce unemployment rates in the area and develop a skilled local workforce. Regenerated local community Taking a community-centric approach to construction projects can aid the regeneration of neglected areas and improve infrastructure, public spaces, and housing. Long-term investments in the area Projects encompassing and prioritising social value often result in long-term investments in community facilities, education, and healthcare services, ensuring sustained benefits and improved living standards for future generations. The benefits of social value to construction firms The benefits of social value extend beyond the community and carry multiple benefits for the construction firms involved. From demonstrating CSR and attracting like-minded contractors, to sealing deals that are founded on shared values, social value is important to construction firms in the UK for the following reasons: Local procurement spend Increasing local procurement spending not only strengthens community ties but also ensures quicker supply chains and reduced transportation costs, leading to a more efficient and timely project completion. Staff training & development Making sure everyone at your construction firm, including your contractors, understands the importance of social value and its positive impact may mean investing in staff training and development. This will add a new skill set to your employees, making them a happier workforce and feel part of something bigger. Engagement with local communities Active engagement with local communities creates positive relationships, builds trust, and often results in smoother project approvals and fewer conflicts. It’s great for a construction firm’s reputation and also can help to improve the efficiency of the project by removing or reducing friction in the community. Competitor advantage Firms that prioritise social value gain a competitive edge by appealing to clients and stakeholders who value corporate social responsibility and sustainable practices, and we know this is increasing exponentially. In short, UK construction firms that don’t incorporate social value will lose out in the long run. How to boost social value impact There are several ways you can boost the social value impact of your project, in conjunction with the construction itself. These can include: Staff volunteering and charitable fundraising Undertaking charitable fundraising for a local charity, or providing your staff with the time and means to volunteer in the community is a great way to demonstrate your commitment to improving the community’s economic, social, and environmental well-being. Why not consider a sponsored walk in the area to raise money for a local cause? Or a commitment to supporting a local food bank or community group. Working with local suppliers Choosing to work with local suppliers is a great way to solidify your commitment to the local economy. Local suppliers are often known to and valued by their local community, and in know the ins and outs of the area and the people in it. The relationship between your firm and local suppliers provides a mutually beneficial outcome, sharing local knowledge and imparting best practices. Providing mentorship or training Offering mentorship or training initiatives can really boost the social value impact of your project. By providing local residents, especially young people and disadvantaged groups, with opportunities to develop new skills and gain valuable work experience, you help improve their future employment prospects. These initiatives can include apprenticeships, internships, and vocational training programs tailored to the needs of the local community. Working regularly with educational settings, we continually strive to provide resources and inspiration for students studying or residing on the premises. For example, when we worked with West Suffolk College, we ran and implemented a tee-level student training course to support development and learning in the community. In addition, we regularly employ apprentices in the area, providing opportunities for local talent and supporting our ongoing bid to nurture individuals into a successful and meaningful career. Integrating sustainability actions Incorporating sustainability actions can involve implementing green building practices, reducing waste and emissions, and providing energy-efficient amenities. By focusing on sustainability, you contribute to environmental protection and create healthier living conditions for the community. Consider initiatives such as using renewable energy sources, creating green spaces, and encouraging sustainable transportation options for your workforce and the local population. DPL case studies of social value projects From projects that pack an environmental punch, through to fundraising and community-centric initiatives, we leave no stone unturned when it comes to creating and delivering social value. It has been integral to our company foundations, since our inception, and is therefore at the core of every project, from concept and procurement, through to execution, with other opportunities to deliver value created along the way. Our work at Glenwood SEN school was a project of passion from start to finish, and beyond delivering an exceptionally efficient, purpose-built facility, we gave back 230 volunteering hours to the community during the project. Find out why it was a notable and worthy winner of the 2018 RICS East Community Benefit award. Environmental impact was the driving force behind our work at Brandon Forest Academy. The premises harnesses energy from the sun and enables Brandon Forest Academy to actively contribute to a cleaner and greener future. The school has now significantly reduced its carbon footprint, achieving a total CO2 emissions reduction of 8,277 kg/year. Most importantly, our team has sparked a marked interest among its students in environmental issues, along with cornerstone subjects in the curriculum, including science, technology, engineering and mathematics. In addition, we support local initiatives in many other ways to stay true to our local community and our roots. Our sponsorship of local sports star, Fabio Wardley, demonstrates our commitment to nurturing and supporting local talent to inspire others. Our work with local charity, FIND, is another cause close to our hearts, and one we will continue to support in addition to our day to day professional and commercial activities.To view our most recent success stories, and to find out more about our commitment to social value, head here. You may also be interested in CSR DPL Group Empowers Local Café with Solar Solution Read article CSR Strength in Community: Sponsoring Local Sports Teams Read article CSR DPL Group help FIND Charity Read article View our knowledge hub Arrange your project with DPL Group At DPL, we are wholeheartedly committed to integrating social value into every project we work on. It has proven instrumental in providing communities with facilities, provisions, and initiatives that have a positive economic, social, and environmental impact. We have robust frameworks and processes in place to ensure that the social value is maximised, without compromising the efficient and high-quality delivery of your project, whatever the size and complexity. If you’d like to find out how we could bring your project to life, and positively impact your brand, business, and community, then get in touch, we’d love to help.
