Our core themes: Value
Driving better social, environmental and economic outcomes through value-based decision making.
Many projects fail to realise their intended value. Even for projects that are delivered on time and on budget, the anticipated outcomes do not always materialise. Why is this?
In practice, the reasons are manifold. But inconsistencies in approach, a lack of alignment in decision-making and a narrow focus on controlling cost and transferring risk in the capital phase – today’s typical approach – are not going to solve this. We need a different method. One that targets value and whole-life performance. This is the ambition set out in the Construction Sector Deal and key policy documents such as the IPA’s Transforming Infrastructure Performance.
But what do we mean by ‘value’, and how can we best define and measure it? Value does not just mean cost, nor is it something that exists purely in the construction phase of projects. Value needs to consider a broader range of metrics beyond financial. It must consider wider social, economic and environmental factors – and – consider them across the full investment lifecycle.
Example project value profile
Delivering this definition of value does not need a change in policy. But it does need a change in approach – one that better reflects broader, strategic policy objectives, responds to local ambition and meets the needs of users, owners and operators. An approach that supports informed decision-making throughout the lifecycle and provides industry with the opportunity to innovate to deliver value in design, delivery and operation.
To address this, the Construction Innovation Hub is working directly with Government, clients and industry to develop the Value Toolkit: A suite of tools to support faster, value-based decision-making across the investment lifecycle.
Find out more
Pilot for ground-breaking Value Toolkit takes off
The Construction Innovation Hub’s Value Toolkit has today moved into a pivotal phase, giving early implementers a chance to pilot the new approach. Already, 20 early implementers have signed up to be part of the pilot…
Value Toolkit blog series
A blog series has been launch to share the ‘what’, ‘how’ and ‘why’ of the Value Toolkit. Over the coming months we will cover in detail each of the Value Toolkit modules, setting out what we are trying to do; how we are doing it, and why the work we’re doing matters to…
Press release – New Toolkit signals shift towards value-based model
UK construction could soon be on the verge of a fundamental shift towards value-based decision making, thanks to a flagship initiative unveiled on 16 July 2020 by the Construction Innovation Hub. The new Value Toolkit intends…
Latest news – Find out more about the Construction Innovation Hub
The Hub’s vision is a world where our built environment improves quality of life, delivers greater social value, reduces environmental impact and is delivered by a world-leading, innovative and sustainable industry.