Value Toolkit announces results-based procurement

The value definition and measurement stream creates a unique value profile for a project and balances the various desired outcomes of the client

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

It’s a way of measuring outcomes rather than input.

It was developed by the Construction Innovation Hub with government funding. Its roots are in the Construction Leadership Council Valuable procurement Report and wants to achieve the ambitions of the year 2020 building guide and that of the Infrastructure & Projects Authority Infrastructure performance transformation roadmap.

The Value Toolkit establishes a process for defining value for a given project and provides a scorecard for measuring specific required outcomes. The weight given to different outcomes may vary depending on a client’s political, social or economic priorities.

The hope is that the public sector will now take over the system for their procurement.

Keith Waller, Program Director, Construction Innovation Hub said, “This is a milestone for the Hub and our industry partners, and a game changer for construction and the built environment.

“In the past, decision-making in construction was determined by how much something cost or how long it took to build. The toolkit provides a laser-like focus on project outcomes that delivers value beyond the bottom line, positively impacting communities and the people who live in them for decades to come. It will ensure closer collaboration between customers and suppliers throughout the lifecycle of a project.”

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Building Secretary Lee Rowley MP said: “It is good to see this new initiative bearing fruit after a successful pilot. The toolkit reflects the government’s desire to ensure we adopt a building procurement process that is centered on clean, green innovation.

“It complements our commitment to increasing the productivity of this vital industry as part of our plans to grow the economy and create quality jobs. I look forward to continuing to work with the Construction Leadership Council to make this goal a reality.”

The Value Toolkit Strategy Committee was chaired by civil servant Rory Kennedy, Director of Capital at the Department of Education. He said: “This is a proud day for the many individuals, companies and organizations that have worked tirelessly through tremendous collective efforts to create, evolve and shape the Value Toolkit.

“The Value Toolkit is a powerful initiative that enables value-based decision making – that best reflects the full spectrum of commonly desired benefits, including better social, environmental and economic outcomes. Governments, customers and the industry all agree that a different approach to value is required. An approach that reflects a shared pursuit of a built environment that achieves more – one that provides a springboard for economic growth, strengthens communities and preserves the environment. The Value Toolkit is this new approach.

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

Andy Mitchell, Co-Chair of the Construction Leadership Council (CLC), added: “For far too long we have talked about cost with little or no relation to value; We talked about results, not results. The Value Toolkit seeks to put a stop to that by providing a comprehensive suite of tools to help customers and suppliers alike develop a true understanding of what actually matters when we are specifying, designing infrastructure for people and society and provide.”

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