RICS, RIBA, CIOB and Social Value UK have joined forces with the Construction Innovation Hub to develop a new industry-wide definition of value, laying the groundwork for a long-awaited transformation in the way decisions are made across the sector.
This new Value Definition is the first of four core elements of a comprehensive new ‘Value Toolkit’ which the Hub is developing in close collaboration with industry and is a key priority under the Construction Leadership Council’s ‘Roadmap to Recovery’.
Building directly on groundwork already laid by Ann Bentley and the Construction Leadership Council Procuring for Value Working Group, the Hub’s Value Toolkit will comprise a suite of four new tools to embed a transparent, consistent and customisable approach to improving the outcomes realised through construction projects and assets by supporting value-based decision-making throughout the investment lifecycle.
Each of the five partner organisations announced today will act as a ‘Relevant Authority’, bringing together groups of industry experts to build a consensus approach to the definition and measurement of value under the ‘Five Capitals model’. The resulting methodology will be used to drive consistent value-based decision making throughout all stages of the investment lifecycle – from business case, through procurement and delivery and into operation. Crucially, the approach will also support a data-driven approach to decision making, with consistent project and asset performance data being fed back to identify best practice and inform future decisions.
The development of the Value Definition will provide the foundation for the remaining elements of the Value Toolkit, which will be formally launched during Future of Building Week (13 – 17 July 2020). The complete Toolkit will help clients to:
- Establish a balanced value profile for each project or programme, shaped by both strategic policy ambitions (e.g. Net Zero, Modern Methods of Construction) and specific client, local and user needs, with a baseline Investment Value Index, based on established metrics and benchmarks, against which decisions and options can be assessed in the development and procurement phases;
- Select the best Delivery Model and Commercial Strategy to maximise realisation of value, based on value needs and considering the market context, risk and capability specific to the project;
- Use a new Procure for Value tool allowing procurement choices to be made on delivery of best whole-life value, not simply cheapest capital cost; and,
- Monitor and benchmark value throughout delivery and operational phases to ensure benefits are being delivered, to optimise value throughout operation and to inform future decision-making on similar projects and programmes.
Construction Innovation Hub Programme Director, Keith Waller said:
“As we get Britain building again, we must resist the temptation to return to outdated practices rooted in cost minimisation and risk transfer and instead focus on new ways of doing things which are delivering better long-term outcomes.
“At the heart of this is shifting away from a historic affinity with cheapness to one where delivering value in the widest sense drives decision-making.
“We are delighted to join forces with RICS, RIBA, CIOB and Social Value UK for this critical and very timely piece of work. By working in partnership and developing our Value Toolkit, we will ensure that UK construction can support the path to Net Zero, boost productivity and modern methods of construction, deliver safe, high quality buildings, improve social impact, support regeneration, levelling up and much more.”
Construction Leadership Council Member, Ann Bentley said:
“The concept of procuring for value is on the cusp of becoming a credible delivery model.
“Bringing together these five authorities to drive forward the development of the Value Toolkit is such an exciting step and I am delighted to be working with them and the Construction Innovation Hub.”
NOTES TO EDITORS:
- The Value Toolkit will be launched at a FREE industry webinar on 16 July 2020.
- The Construction Innovation Hub was launched in November 2018 and brings together world-class expertise from the Manufacturing Technology Centre (MTC), BRE and the Centre for Digital Built Britain (CDBB) to transform the UK construction industry. With £72 million from UK Research and Innovation’s Industrial Strategy Challenge Fund, the Hub aims to change the way buildings and infrastructure are designed, manufactured, integrated and connected within our built environment.
- Relevant Authorities are chaired by key industry organisations who perform the role of custodians for each capital. The relevant authorities have responsibility for selecting and refining the metrics, measures and scoring profiles for each value category, working directly with input from clients/asset classes. The Hub’s dedicated team will embed the outputs of the Relevant Authorities into the methodology and tool. In the longer term, the Relevant Authorities will also be responsible for benchmarking and analysis of submitted data.
- Social Value UK is the professional body for social value and impact management. As a member-led organisation, our mission is to change the way the world accounts for value. Our aim is to reduce environmental degradation and inequality and increase wellbeing for all. Social Value UK does this through standardising practice through the Principles of Social Value, brokering relationships and encouraging cross-sectoral collaboration, encouraging further accountability for impact, building a community of practitioners and encouraging innovation.
- CIOB (The Chartered Institute of Building) is at the heart of a management and leadership career in the built environment. We are the world’s largest and most influential professional body for construction management and leadership. We have a Royal Charter to promote the science and practice of building and construction for the benefit of society, and we’ve been doing that since 1834. Our members work worldwide in the development, conservation and improvement of the built environment. We accredit university degrees, educational courses and training. Our professional and vocational qualifications are a mark of the highest levels of competence and professionalism, providing assurance to clients and other professionals procuring built assets.
- RIBA (The Royal Institute of British Architects) is a global professional membership body driving excellence in architecture. We serve our members and society in order to deliver better buildings and places, stronger communities and a sustainable environment. Being inclusive, ethical, environmentally aware and collaborative underpins all that we do.
- RICS (The Royal Institution of Chartered Surveyors): We are RICS. Everything we do is designed to effect positive change in the built and natural environments. Through our respected global standards, leading professional progression and our trusted data and insight, we promote and enforce the highest professional standards in the development and management of land, real estate, construction and infrastructure. Our work with others provides a foundation for confident markets, pioneers better places to live and work and is a force for positive social impact.