Construction Innovation Hub Value Toolkit – Shift towards a value-based decision model

Constructing Excellence is delighted to be working with the Construction Innovation Hub on its new ‘Value Toolkit’.  The Toolkit is intended to help policy makers and clients make faster, informed decisions which incentivise industry to respond with innovative, high value solutions.

The Toolkit will support better decision-making throughout the whole investment lifecycle from business case through to procurement and delivery and operation, improving overall sector performance consistent with key policy objectives such as driving Modern Methods of Construction (MMC), delivering social impact and accelerating the path towards Net Zero.

The Toolkit contains a suite of tools in four linked modules which will:

  • Support policy makers, clients and advisors in defining the unique value profile for a given project and create value indices through which informed decisions can be made;
  • Help clients and their advisers to select a delivery model and commercial strategy, and industry to develop business models, that best meet the value drivers of the project;
  • Build on the groundwork laid by Ann Bentley and the Construction Leadership Council Procuring for Value Working Group and the IPA’s Transforming Infrastructure Performance to allow clients make procurement decisions based on the value drivers of the project and industry to shape their offers accordingly; and,
  • Continuously forecast and measure value performance throughout delivery and operation, helping clients and industry to maximise value on each project and using performance data to help policy makers shape decisions on future projects.

Constructing Excellence will be consulting through our members and wider network to engage with the supply chain to understand levels of capability and to identify and address key barriers to the adoption of value-based approaches. We are currently pulling together a team to carry out this work and will be announcing them shortly.

Construction Innovation Hub Programme Director Keith Waller said:

“With the CLC Roadmap to Recovery and the supportive measures recently announced by the Prime Minister and Chancellor, the starting gun on sector recovery has well and truly been fired. It is crucial however, that we don’t lose sight of the bigger prize here – the opportunity to embed a lasting shift towards value-based decisions that drive better social, economic and environmental outcomes.

 “By abandoning, once and for all, our sector’s historic affinity with cheapness and embracing a new model where delivering value drives our decision-making, we can ensure that UK construction is actively supporting the path to Net Zero, boosting productivity, delivering safe, higher quality buildings, improve social impact, supporting regeneration, levelling up and much more.

“As well as making better decisions, our Toolkit will ensure we make them faster, ensuring industry can deliver on the Government’s vital ‘Project Speed’ ambitions to stimulate our economy.

“For this to deliver real and lasting impact however, support and buy-in from policy makers, clients and industry at large is crucial.  We are very fortunate to have strong support from some of construction’s leading voices like ACE, CE, CECA, CLC, as well as the Responsible Authorities we announced last week to take this crucial package of work forward.”

Minister for Business and Industry, Nadhim Zahawi MP said:

“This brilliant new initiative reflects the Government’s desire to ensure we embrace a construction procurement process that has clean, green innovation at its heart.

“It complements our commitment to boost the productivity of this vital industry as part of our economic recovery. I look forward to working with the Construction Innovation Hub and Construction Leadership Council to realise this ambition.” 

Visit the Construction Innovation Hub website to read the release in full.

 

Key industry partners are supporting the development of the Value Toolkit as follows:

  • Ann Bentley is leading on the Value Definition element of the Toolkit (in support of the sector deal ask for a consistent definition of value), drawing on the expertise contained within the CLC’s procuring for Value working group and building a consensus based approach via a Relevant Authorities model (i.e. groups of subject matter experts headed by key industry organisations – one for each capital);
  • The Association for Consultancy and Engineering (ACE) has assembled a team of industry experts together to lead work on delivery models, commercial strategies;
  • Constructing Excellence (CE) is drawing on its extensive membership to engage with the supply chain (consultants, contractor and manufacturers) to understand levels of capability and to identify and address key barriers to the adoption of value-based approaches;
  • The Civil Engineering Contractors Association (CECA) is working directly with the Hub to address skills and training needs required to bring clients and industry on the journey and helping us plot a path to widespread adoption; and,
  • The Infrastructure and Projects Authority (IPA) is leading a client advisory group of key public (TIP+MHCLG) and private clients to ensure we create something that is implementable and which aligns with and enhances (on the public side) existing procurement policy (green book rules) and decision-making processes.
  • Relevant Authorities are chaired by key industry organisations who perform the role of custodians for each capital. The relevant authorities have responsibility for selecting and refining the metrics, measures and scoring profiles for each value category, working directly with input from clients/asset classes. The Hub’s dedicated team will embed the outputs of the RA’s into the methodology and tool. In the longer term, RA’s will also be responsible for benchmarking and analysis of submitted data.
    • The Relevant Authorities are: RICS, RIBA, CIOB and Social Value UK

 

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