The Social Value Act - how will this effect the construction industry?

In January this year the Social Value Act was officially enacted.  The Act aims to change the way that public money is spent ensuring value for money in public service delivery.  This means that all services commissioned by public authorities must now demonstrate social value with this being incorporated into the design of the service.  At a time when government spending is being cut back but the demand for public services is rising, this is obviously an important objective for Government.

Chris White MP who introduced the Act in 2010 stated “The aim of the Act is to support community groups, voluntary organisations and social enterprises to win more public sector contracts and to change commissioning structures so that a wider definition of value rather than just financial cost is considered.”

The Act requires authorities to consider: 

• how what is proposed to be procured might improve the economic, social and environmental well-being of the relevant area, and

• how, in conducting the process of procurement, it might act with a view to securing that improvement

So what does this mean for construction?  The Act means that the way public procurement is undertaken will change.  More specifically, the Act applies to the pre-procurement stage of contracts for services because that is where social value can be considered to have the greatest effect, meaning that for the first time the public sector must consider social value ahead of procurement. 

The social value act applies to public services, and is not necessarily enforced on public works. However it is undeniable that this will have a knock on effect. Not only in the desire of those choosing the successful bid to show they are using socially valuable construction companies. But we can also see this desire quickly becoming legitimised as criteria for tender.

If we look to Wales we can see that since 2011 they have been pushing community benefits to public procurers through their guidance document, in the aim of establishing maximum value for the Welsh pound.  This takes the spirit of the act and goes a step closer to us in applying it to public works.

With the act placing directives on those that employ us, community benefits increasingly appearing as requirement for tender, and governments issuing guidance on how to deliver, should this be something we are turning our minds to? Regardless of what strictly speaking applies to us in the construction sector, if we as conscious individuals can see a shift in the culture of our larger environment, should we be paying more attention to it? Is this an opportunity to predict how this topic might affect us in the future?

If we believe this as true, there are two ways this may affect us for the better: Getting to grips with these changes now can easily and effectively gain us a competitive advantage. But it also benefits us by ensuring we are prepared for what may be enforced on us in the future. In realistic terms if you can demonstrate securing both best price and meeting the wider social, economic and environmental needs of the community, it may not only  place you higher up the ranks on tender lists, but with this criteria being a growing requirement on tender documents, it will ensure you are able to compete in the first place.

Given that the Act came in without much publicity, many are perhaps still getting to grips with the technicalities of it all.  Government have provided an ‘action note’ however this does  not specifically set out a number of points including how the results of these impacts and feedback from accompanying consultation should shape any procurement which is undertaken.  It does however provide examples of how social value may be considered at various stages of the procurement process. 

With the construction industry just getting back on its feet after the latest economic downturn, implementing and achieving these wider reaching aims alongside price and quality may seem a rather large task.  Engaging with the Act early on and getting to grips with the fundamentals however will help secure a better position in the market when it comes to the bidding process.  

If you'd like to learn more about the Act and what it means for you, join our free webinar on 30th October.

Industry and Academia Collaboration for a Better Future - where are all the students?

In June Constructing Excellence held the Universities and Industry Working Together for a Collaborative Future’ event at the BRE in Watford.  As a PhD student and trying to engage with industry for my research I thought this would be a good opportunity to see the real interface between industry and academia.

The day started with a number of talks from both academia and industry with questions to the presenters at the end. Some strong polarities developed around the room during the discussion, making for interesting listening.  

Workshops were conducted throughout the afternoon of which I attended the two I thought most relevant to myself. The first was the ‘Research and how it can be used to educate inform and inspire’ which was met with both enthusiasm and cynicism in my group (myself being the former).  Anna Scothern from BRE gave a presentation about the development of a community platform via mobile apps where customers can easily engage with aspects such as the Green Deal, BREEAM and receive information from BRE on a range of other topics. Personally I thought this  demonstrated  how research can benefit industry and consumers, although not everyone in the room felt the same questioning where and how some aspects would work. 

The second workshop was with our very own Katy Harris facilitating as part of the Collaborative Working Champions Group. A number of workshops around this topic were conducted and at the end each group presented their discussion results to the room.  The workshops centred around the question ‘what is the industries view of best practice and what modern graduates need to know and is this being reflected in the current delivery of HE?  What are the barriers to improvement?'  A broad ranging question which met with a broad range of diverse answers!

A key theme that emerged from this workshop and those associated with it was that practical experience is important.  The disappearance of the sandwich year was a topic  which met with great interest in my group.  An afterthought that came to me surrounding this was just how on board with this would industry actually be?  Time and resources are scarce especially after the economic downturn and workforces in some cases are operating at two thirds of the capacity.  Would industry really be willing to give up time and resources to engage with students?

In my own research on sustainability I have come up against much resistance from industry.  Comments such as “we will get there but it will be like the health and safety issue, it will take time”.  It doesn’t have to, not if industry adopt a proactive rather than the reactive approach they currently adopt.

A thought that struck me during the day was that I was the only student at this event and there only by default through my position at Room4.  If industry and universities are to have a true collaboration we need student engagement.  The construction industry is a dynamic one and needs dynamic individuals.  Talent and innovation is out there in the form of our graduates.  The graduate pool is not being utilised to the extent that it should be (or indeed the undergraduate pool).  I know from my own research that the construction industry is a resistant one and dislikes change.  Change however is key if the sector is ever to move forward. 

Positive comments however emerged from the day with Giles Price from Heathrow Airport presenting commenting “Give me a graduate with energy and passion and I'll take 'him' above all others!”   Had such a graduate been present in the room might he have landed himself such a position?

My overall experience of the day was that we still have a long way to go in integrating industry and academia.  Links between the institutions themselves are well established but are not utilised effectively.  In addition, and in my opinion, the voice of the students is a missing link here.  A question posed by Katy “where are all the bright sparkly things?” is a very good one and prompted me to write this blog.  A platform where ideas are exchanged and where employers can spot talent and bring it on board is needed.

Is Social Media the way forward?


Social media is a powerful tool and is indeed the very means by which I find myself in my current position as a Trainee Consultant at Room4. I see all the time on Linked in and Twitter students trying to engage with industry about projects they are working on.  Employers need to engage more with students on these platforms as it’s where the ‘bright sparkly things’ are.  You never know what you might find.  It’s where Room4 found me.  My background is not in construction but psychology.  My research area however has crossed me over into the complex world of construction.  Whilst I don’t bring any construction skills to the market I bring people skills, critical thinking along with passion and drive for achieving sustainability in construction (amongst many others!). 

Our latest recruit, Frankie, came in 2 weeks ago fresh out of university and has already assisted our managing director in delivering a workshop on social media in the construction industry as well as transforming our own social marketing agenda. (Check out Frankie’s blog about her experience and the ‘Frankie Challenge’).

Comments from the collaboration event were tweeted throughout the day generating a good stream of conversation and food for thought, again highlighting the use of social media.

Not yet conversant with the world of social media?  Why not attend our free social media and marketing webinar on 16th October?  And if you’re Interested in helping with my research you can complete my survey and request info/feedback to me at michelle.brennan@room4.co.uk 

http://events.constantcontact.com/register/event?llr=doh5sujab&oeidk=a07e80db6kha5cc311cfree social media and marketing webinar on 16th October?

How BIM ready are you?

If you need to know where your company currently is on the BIM maturity scale or how you can 'get ready' for BIM Level 2, then this is the place to start.


Building Information Modelling (BIM) is the future of construction.   The drivers couldn't be simpler. Unless you are working at level 2 BIM by 2016 you will be ineligible for public sector work.  

In 2012 the NFB published their report BIM: Ready or Not?  The report was based on an industry wide survey which set out to assess the BIM readiness of the contracting sector with a particular focus on SMEs. At the time the survey confirmed that the industry did indeed have a giant leap to make to achieve the Government mandate of BIM Level 2 as a minimum on all government funded projects by 2016. 

As part of the NFB's BIM programme of support Room4 have developed Building Information Modelling (BIM) online diagnostic tool, FREE to organisations looking to implement BIM strategies within their organisations.

Simply click on the link below and answer some simple questions to receive an overview of where you are on your BIM journey and a top level action plan for what you need to do to move forward.

BIM - 2 day Programme

 


The University of Ulster's school of the Built Environment in cooperation with Constructing Excellence Northern Ireland are offering a two day programme held on the 20th and 28th August, to gain an in-depth overview on BIM - one of the increasingly predominant ares of interest within the construciton industry and widely acknowledged as the future of project information.

The two day programme - worth 16hrs CPD- is led by the Schools academic staff Mark McKane, Robert Weatherup and Dr Robert Eadie. All of whom are influential voices in the growing BIM circles of the NI construction industry. As well as Room4's very own Professor Andrew Thomas, considered one of the leading authorities on BIM internationally, as well as co-author of the UK mandated BIM report and a Member of BIM4SME  board.

The two days are split into four modules covering BIM overview, BIM roles and BIM protocols, BIM standards and BIM in practice. Giving you all the information you need on a topic that cannot be ignored, by some of the leading voices in sector.

For more information and for booking click here.

Value Wales Construction Procurement Strategy Survey

 

Value Wales have released a new survey, for both contractors and clients, on behalf of the Construction Procurement Strategy Steering Group (CPSSG).

This survey aims to collate the voices of those effected by the public construction procurement process. The information received will be used to advise procurements staff when guiding and  evaluating tenders. 

This is a valuable and influential process for all involved as it allows industry members a voice on the issues effecting their work winning.

The closing date is 30th August so if you wish to influence how you may be engaged in the bidding process in Wales in the future you can fill in the survey and gain more information here for contractors and here for clients.

social media in the construction industry - a newbie's perspective

For those of you who aren’t aware, Room4 consulting has a new marketing assistant. Me. Frankie Thomas. After finishing my degree two weeks ago I have been with the team at Room4 working on their marketing campaign. For this reason two days into the job I was offered the opportunity to travel down to Crawley to help managing director Tim Whitehill deliver a workshop on social media marketing in the construction industry.  

My job at the event was much to act as ‘teaching assistant’ and help out where I could. This enabled a balance between Tim’s years of experience in the construction industry and my new found degree as well as my considerable experience of using social media. This is something I hope and believe worked well as it gave us a rounded view that could relate and offer opinion on all ways of thinking in the room. 

Other than piping up with my opinion every so often we ran the ‘frankie challenge’. The aim being to show in practical and realistic terms just how simple growing a social media network could be. We took twitter and created my corporate twitter account @room4frankie. Beginning with a blank profile we encourage tweets within the room using the hashtag #frankiechallenge. I tweeted and added people from the industry and soon #frankiechallenge had participation outside the 11 (but growing) tweeters in the room. Not only this, but by using #socemedsecbe, we received ebooks (from @pauleycreative) and multiple links of interest from various sources keen to have their say on the topic such as @RSSprojects and @SuButcher.

The delegates were a good mixture of people, from the newbies of the companies (much like me), to the directors themselves. Although at different stages technologically everyone seemed willing to learn. Many were already aware of the importance of embracing social media to not only their businesses and careers, but also to the industry itself, whilst a few were less convinced. However the best part was that everyone was open minded and willing to listen to other people’s side of the story, as well as to share theirs.

Even as a relative outsider I’m aware that for one reason or another construction is a largely male dominated industry. Considering this I was pleasantly surprised to see the presence of quite a few women, in the room. However this presence in some senses revealed the dynamics of the construction industry’s relation to social media. There was one young lady in particular who described the difficulties she faced in her work. She had been sent as representative to learn how social media can be applied to their business, whilst the sceptics were unwilling to participate.  Although the willing to engage in some part is admirable, this is an area that we cannot leave to the ‘youth of today.’ Yes it may be that they, for the most part, are the ones ‘plugged in’, but it also the youth that will one day be in charge. It is the youth that will be left with your hard work in their hands to do with as they wish, and if your hard earned work is not compatible with the modern day, I’m afraid to say you may well be left in the dark ages.

This may sound all doom and gloom, but it is in fact an incredibly exciting and positive eventuality, it is not the case that it is too difficult, laborious or extensive to comprehend. You don’t have to cover everything out there, if anything that is counterproductive. Decide on what you want to achieve through social media, select a few choice platforms to amplify your message, and with it the route to those aims. If you manage those few well (and there is software and tactics readily available to help in this) by amplifying a consistent message, and the message that you want people to see – don’t be daft and forget the world can see it- then you will not only be ‘down with the kids’ but you will find, most probably, that success in those aims far outstrips the labor involved. 

By the end of the session I had 40 followers, all in the industry, some valuable resources, an entire online conversation created and some convinced sceptics. Success.