Next week’s launch of the Value Toolkit is a big moment in our sector’s journey towards building better, but what matters most is what comes next, says Ann Bentley
This month marks a significant milestone in the journey of one of the key construction industry initiatives with the launch of the Construction Innovation Hub’s Value Toolkit on 20 June. Like many major milestones such as turning 21 or passing a driving test, the day itself might be full of anticipation, excitement and energy about ensuring that it reflects all of the work undertaken to date. However, what is really significant is not the journey to date, but what happens after this point in time.
When I was appointed to the Construction Leadership Council (CLC) in 2016, one of the first meetings I attended was the presentation of Mark Farmer’s Review of the UK Construction Labour Model – or the Modernise or Die – report, that turned out to be a precursor to the UK industrial strategy back in 2017 and an important reference for me to build on in the CLC’s 2018 Procuring for Value report. The cumulative impact of these touchpoints is far greater than the sum of their parts, as each marks a staging post on the journey our sector is on in procuring better, and the launch of the Value Toolkit is of course another significant event in the development of this journey.
Our industry often gets criticised for throwing the baby out with the bathwater as governments change, policy gets revised and funding gets redirected. However, often what really happens is evolution takes place and, although maybe repackaged or rebranded, work continues to solve the challenges of our industry.
It brings with it the real tools to show people how to change their behaviours – not just the imperative of “you must”, but the know-how of how to change
We know we have moved on significantly in both the public and private sector in our procurement processes where 10 – maybe even five – years ago, cost remained the only factor relevant for most clients. We now are in a world where we have governance in the form of the Construction Playbook, the levelling up and carbon net zero targets clearly outlined and the ESG (environmental, social and governance) agenda plays a significant role in investors, developers and end clients’ decision making. However, although we are no longer at the start, we are certainly not at the end of our procurement journey.
We must remember too that the Value Toolkit is not something that has been imposed on our industry. Led by the Construction Innovation Hub, it has always been a joint collaboration between industry and government, and now that it has been developed, is a tool that will remain in the public domain for all to use.
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It brings with it the real tools to show people how to change their behaviours – not just the imperative of “you must”, but the know-how of how to change – unlocking the Pandora’s box of how to bring in environmental factors, social value, and other non-monetary values into the procurement process. For those who already know that the future looks different from the past, it is so much more than words but a practical platform for action with an app, training and how-to guides.
Put succinctly, it is about better decision making – looking at projects and programmes holistically, with more than just cost in mind
Let’s refresh ourselves on what the Value Toolkit’s ambition set out to do. As the Construction Innovation Hub states, it was “developed in partnership with over 200 experts from across industry and government to help redefine value and how to measure it. The Value Toolkit enables value-based decision making focused on driving better social, environmental and economic outcomes, improving industry’s impact on current and future generations.”
Put succinctly, it is about better decision making – looking at projects and programmes holistically, with more than just cost in mind
So, if 20 June marks a milestone for the Value Toolkit, where should we be looking to go next on this journey? Although born out of central government-funded projects, enabling clients to meet the mandate in the Construction Playbook to use a value-based approach, I am already confident that its usage will stretch far more widely. My ambition is to see the toolkit 100% adopted by central-funded projects in the future, and for this to cascade down to local authority-funded projects where the value of using the toolkit in their procurement would be significant.
Likewise, private sector clients who want to demonstrate their projects’ ESG credentials would benefit massively by using the toolkit, as would planning appraisals, where clearly documented assessments of the impacts of proposed projects are key. A single framework that works across central and local government and private sector that was the result of collaboration between industry and government surely will bring efficiencies that will benefit all.
As we head towards our launch day with stakeholders from government and industry across public and private sector bodies, we must remind ourselves of why this approach is crucial for the future of the built environment. We must contextualise it within the past five years where, among other fallouts from short-sighted decision making, we have seen supply chains and even the monolith of Carillion fall, the devastating impact of Grenfell where procurement was dictated by cost not value and the current marketplace we find ourselves in through global and national events that are challenging us daily in our project decisions.
Now is the time to use the tools available to us to ensure that we think before we build – or even think before we make the decision not to build at all.
Ann Bentley is a global board director of Rider Levett Bucknall, a member of the Construction Leadership Council and a collaborator on the Value Toolkit
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