CIOB has published a new report which sets out the advantages construction SMEs can attain by embracing social value rules.
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Social value is increasingly a priority throughout the procurement process. According to the report, SMEs can achieve a competitive edge by gaining social value competence.
Social value is defined as the economic, social and environmental benefits a public contract can bring beyond the function of the asset procured. Improvements to local ecosystems, recruiting apprentices, facilitating community events and buying local goods and services are common social value provisions.
Northern Ireland formalises policy
Of the devolved governments, Northern Ireland formalised its social value policy most recently, with PPN 01/21 in June 2022.
Yvonne Conway, social value manager at SME Woodvale Construction, based in Omagh, County Tyrone, said the company is determined to make social value work, despite the challenges.
“For instance, it’s not clear whether companies who promise a social value outcome but fail to deliver it are sanctioned. Will they pay money in compensation, or be marked down when they bid for the next project? We don’t know,” she said.
“It’s unfair competition when companies do not fulfil the commitments made when they tender for a contract. We incur costs by complying with PPN 01/21 that competitors may not.
“Despite the issues, we remain determined, and we do see instances of social value making a positive difference. But there needs to be fair negotiations over outcomes.”
Social Value and SMEs: It’s not going away is published at www.ciob.org.
