Value Toolkit heralds outcomes-based procurement

The value definition and measurement stream produces a unique value profile for a project, balancing the client’s various desired outcomes

The value definition and measurement stream produces a unique value profile for a project, balancing the client’s various desired outcomes

The Value Toolkit is described as “a suite of tools that will be used by industry to embed value-based decision making in the built environment sector”.

It is a way of measuring outcomes rather than input.

It has been developed by the Construction Innovation Hub with government funding. Its roots lie in the Construction Leadership Council’s Procuring for Value report and it sets out to deliver on the ambitions of the 2020 Construction Playbook and the Infrastructure & Projects Authority’s Transforming Infrastructure Performance Roadmap.

The Value Toolkit sets down a process for defining what value is for any given project and provides a scorecard for measuring specific outcomes that are required. The weight given to different outcomes can vary according to a client’s political, social or economic priorities.

The hope is that the public sector will now adopt the system for its procurement.

Keith Waller, programme director at the Construction Innovation Hub, said: “This is a landmark moment for the Hub and our industry partners, and a gamechanger for construction and the built environment.

“Decision making in construction has been historically driven by how much something cost, or how long it took to build. The Toolkit delivers a laser-like focus on project outcomes that delivers value beyond the bottom line, and positively affect communities and those who live in them for decades to come. It will ensure a more collaborative relationship between clients and suppliers throughout the whole life of a project”.

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Construction minister Lee Rowley MP said: “It’s good to see this new initiative come to fruition after a successful pilot. The Toolkit 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 plans to grow the economy and create good quality jobs. I look forward to continuing to work with the Construction Leadership Council to realise this ambition.”

The Value Toolkit strategy board was chaired by civil servant Rory Kennedy, director of capital at the Department for Education. He said: “This is a proud day for the many individuals, businesses and organisations who have worked tirelessly through huge collaborative effort to develop, evolve and shape the Value Toolkit.

“The Value Toolkit is a powerful initiative that enables value-based decision-making – that best reflect the full range of commonly desired benefits, including better social, environmental and economic outcomes. Government, clients, and the industry all agree that a different approach to value is needed. An approach that reflects a shared ambition for a built environment that delivers more – one that provides a springboard for economic growth, enhances communities, and sustains the environment. The Value Toolkit is this new approach.

“I look forward to seeing the Value Toolkit go from strength to strength as government and industry drive wider adoption”.

Andy Mitchell, co-chair of the Construction Leadership Council (CLC), added: “For far too long now we have talked cost with little or no reference to value; we have talked outputs not outcomes.  The Value Toolkit seeks to see an end to this by providing a comprehensive suite of tools that will help clients and suppliers alike develop a real understanding of what is actually important as we specify, design and deliver infrastructure for people and society.” 

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