Construction Industry & Delivery

We are working with public and private sector partners to improve outcomes for the construction industry as a key part of Scotland’s economy, and deliver improved infrastructure that contributes to the delivery of resilient, sustainable places, and an inclusive net zero carbon economy.

Social Value and Community Benefits

Since the inception of the hub Programme, the hubCos and their supply chains have committed to delivering community benefits as an integral part of the construction projects which they deliver on behalf of the programme’s Participants.

This commitment has been one of the many successes of the programme, with the focus being in the main, upon benefits associated with education, training and employability initiatives.  The commitment of the programme in respect of delivering community benefits, the majority of which are delivered directly by the construction partners, has assisted Participants in meeting their obligations under the Procurement Reform (Scotland) Act 2014. In doing so, it has also assisted the wider construction industry in Scotland to recognise the benefits beyond the construction of community infrastructure, which it can deliver to society and in turn, how to structure their businesses in a way to enable efficient delivery of these important community benefits.

After ten years of successfully delivering community benefits, the programme has reviewed the potential to improve upon its commitment to communities and society more generally and the community benefits model has been replaced with a social value approach.

By definition, social value is broader than the community benefits, in that it considers initiatives which affect the long-term wellbeing and resilience of the individual and society in general. It includes economic impact and sustainability and in doing so, addresses many of the commitments of the programme’s Participants.  

SFT has worked with the Social Value Portal to develop a set of Themes, Outcomes and Measures (the SFT TOMs), which provide Participants with a framework of relevant measures which can be adopted to set social value targets for the projects which they are procuring through the programme. The SFT TOMs are based upon the National TOMs which were originally developed for the National Social Value Task Force. The adaptation reflecting initiatives which are particularly important to Scottish Government and the Public Sector in Scotland.

The approach adopted by the SFT TOMs, is to monetise the social value outputs delivered by each project within the programme. This is achieved by using a series of proxy values which have been developed as part of the National TOMs, these having been localised for Scottish based projects. This approach enables the calculation of a monetised value of the outputs form each of the hub Territories and across the whole programme.  The intention is to continue to report on the key deliverables of the programme (jobs sustained, apprenticeships and graduate opportunities created), but also to report the social value created on a monetised basis.

The approach which has been adopted across all five hub Territories also links the TOMs to the National Performance Framework and the United Nations Sustainable Development Goals. This mapping process enables Participants to readily report against their own commitments to these important objectives.

Details of the approach which is being adopted can be found here and the detail of the proxy values used can be found here