The Constructing Excellence Procurement Group recently hosted a thought‑provoking session exploring one of the most persistent and challenging questions facing the construction sector: the economics of social value – and, ultimately, who pays for it.
The session brought together procurement professionals and industry colleagues to unpack an issue that is widely discussed, often required through policy and tendering, but not always fully understood in terms of cost, responsibility and delivery. With contributions from Lucy Howard (Turner & Townsend) and Ellie Jenkins (Akerlof), the discussion moved beyond theory to consider the practical and cultural realities facing clients, suppliers and procurement teams.
Setting the Challenge
The session opened by acknowledging a growing tension within the industry. While social value is now firmly embedded in procurement processes and evaluation criteria, there is often limited transparency or agreement about how it is funded.
Three key “inconvenient truths” framed the conversation:
- Social value is not delivered for free
- Ambitious social value requirements, including high tender weightings, can add cost and complexity
- There remains a widespread belief among some clients that social value should be delivered at no additional cost
This framing prompted an honest exploration of where the costs associated with social value are absorbed, deferred or displaced, and what this means for fair and sustainable procurement.
From strategy to procurement reality
The session deliberately bridged strategic thinking and practical application. It explored how social value is positioned at policy and organisational level, before examining how those ambitions translate into individual tenders, contracts and delivery models.
A recurring theme was the disconnect between aspiration and commercial reality. When social value requirements are imposed without clarity on funding, risk allocation or measurement, costs can be hidden within bids, absorbed by suppliers, or deprioritised during delivery. This can undermine both value for money and the genuine social outcomes clients are seeking to achieve.
The discussion highlighted the need for procurement approaches that are transparent, proportionate and aligned with delivery capability, rather than treating social value as an abstract or cost‑free add‑on.
Culture, behaviour and the role of procurement
Beyond process and economics, the session also surfaced the importance of culture. How organisations think about people, employment, skills and communities directly influences how social value is approached in practice.
Procurement professionals were recognised as playing a critical role in shaping this culture. By asking better questions, setting clearer expectations and engaging earlier with the supply chain, procurement can help move social value from a compliance exercise to a meaningful part of project outcomes.
There was also recognition that changing behaviours across the industry takes time, and that consistency of approach from clients is essential if suppliers are to invest confidently in social value delivery.
A conversation, not a conclusion
As intended, the session opened up a wider discussion rather than offering a single answer. Participants shared perspectives on cost, accountability and value, reflecting the diversity of roles and experiences across the sector.
What emerged clearly was a shared understanding that if social value is genuinely important, it must be properly recognised, planned and paid for. Avoiding the question of “who pays” does not remove the cost — it simply shifts it elsewhere, often with unintended consequences.
Looking Ahead
By creating space for open, sometimes uncomfortable conversations, the Procurement Group continues to support the industry in tackling complex issues with honesty and collaboration. The economics of social value may not have simple answers, but sessions like this help move the conversation towards more realistic, fair and effective outcomes.
To get involved with the Procurement Group, take a look at upcoming sessions on our events page.
