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Procuring For Value: Construction Innovation Hub and Construction Leadership Council to develop new digital system for industry

17 Oct 2019

The construction sector could soon benefit from a new digital system which will support whole-life outcomes-based decision-making in new asset procurement.

While numerous individual tools and methodologies exist for evaluating the social, environmental and economic impact of the built environment, an integrated approach to drive value-led procurement remains elusive. The new system will encourage holistic value assessment, with a transparent, consistent and coordinated approach to data used to inform decisions.

This will be the first major collaboration between the Construction Leadership Council (CLC) and the Construction Innovation Hub, a £72 million Government-backed initiative, launched late last year. Development of the system will build on ambitions set out in IPA’s Transforming Infrastructure Performance programme, and over two years’ work by the CLC’s Procuring for Value workstream, led by RLB Global Board Director Ann Bentley and supported by representatives across the industry including the Construction Industry Council, Constructing Excellence, the Association of Consulting and Engineering, BuildUK, CECA and academic institutions.

This collaboration will be about more than just a system for procurement; it will allow a clear and transparent assessment of value from inception and business case, through the design and construction and into operation.  The system will allow users to make informed decisions within predefined, policy-led boundaries based on local needs and user priorities.

 

Construction Innovation Hub Programme Director Keith Waller, said:

“Armed with a deeper understanding of where value truly lies, construction clients can make better investment and procurement decisions, produce better outputs and solutions and, ultimately, create better value for all parties involved.

By collaborating with the CLC on this new digital system, we have set out not only to help the sector do procurement better; we are also providing the impetus for broader, more coordinated data collection across the sector, providing a framework for assessing asset performance through-life.

I’m confident that this will be the first of hopefully many collaborations between the CLC and the Construction Innovation Hub, as we work together to drive a transformation in construction, which will reap benefits not only for the sector, but for our society and the environment more broadly”.

 

Construction Leadership Council Member Ann Bentley, said:

“There is huge goodwill across the industry to work together, to design and construct assets that provide value to the clients and fulfil the needs of end-users. The procuring for value tool will be an important step on this journey – which in-turn should see the end of the ‘race to the bottom’. The CLC is delighted that this project has gained momentum and is now being developed in partnership with the Construction Innovation Hub.”

 

Hannah Vickers, CEO of the Association for Consultancy and Engineering, said:  

“Enabling clients to define and communicate their value, with the development of a digital system, is critical to the evolution of the consultancy industry. Through our Future of Consultancy research, we know there is a huge opportunity to redefine a supply chain based on value not volume, shifting consultancies onto value-based models which will reward outputs and outcomes.

“It’s encouraging to see that the Construction Innovation Hub and Construction Leadership Council are developing the new digital system based on the principles of our Five Capitals model. This is testament to the fact they are taking a truly collaborative approach.”

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