How can the public sector drive social value in a post procurement act world?

Driving Social Value in a Post-Procurement Act World: The NWCH Perspective

As a team at the North West Construction Hub (NWCH), we’ve always believed that public sector procurement is about more than just delivering projects on time and on budget, it’s about creating real, lasting value for our communities. The introduction of the Procurement Act 2023 is a pivotal moment for the sector, and it challenges us all to put social value at the centre of every decision we make.

From “Consider” to “Have Regard”

The new Act raises expectations for contracting authorities like NWCH. It’s no longer enough to simply ‘consider’ social value, we are now required to ‘have regard to the importance of maximising public benefit’. This is a fundamental change, making social value a core priority in every procurement process and ensuring that our projects deliver positive outcomes for people, places, and the wider region.

We’re incredibly proud of the collaboration of our framework contractor partners and their supply chain with the transformation of an outdoor space at the Lancashire SAFE Centre, Royal Preston Hospital.

What was once an overgrown and underused garden is now a peaceful, private haven, offering moments of calm and reflection for staff, patients, and visitors during some of their most challenging times.

This project is a shining example of what can be achieved when the construction community comes together with purpose. Through donated time, materials, and expertise, we’ve not only enhanced the physical environment but also delivered meaningful social value, creating a safe, restorative space that supports wellbeing and dignity.

Most Advantageous Tender: Beyond Cost

With the shift from ‘Most Economically Advantageous Tender’ to ‘Most Advantageous Tender’, NWCH and our partners are empowered to look beyond cost alone. This means we can place greater emphasis on social, economic, and environmental outcomes, such as creating local jobs, supporting skills development, championing sustainability, and increasing opportunities for diverse suppliers. It’s an approach that aligns perfectly with our mission to deliver projects that leave long lasting benefits.

Mandatory Social Value Weighting

The Act introduces a minimum 10% weighting for social value in tender evaluations, with the flexibility to go higher where it makes sense. At NWCH, we welcome this clarity and structure. By using the updated Social Value Model, we can set clear, measurable outcomes that reflect both government priorities and the unique needs of our local communities.

Transparency, Accountability, and Reporting

We know that what gets measured gets delivered. The new requirement to set and publish at least three Key Performance Indicators (KPIs) for contracts over £5 million, with annual reviews, will help ensure that social value commitments are more than just words on paper. NWCH is committed to transparent reporting and holding ourselves, and our supply chain, accountable for delivering real impact.

Empowering SMEs and VCSEs

A key highlight of the new Act is its commitment to breaking down barriers for small businesses and voluntary sector organisations. NWCH has long supported the involvement of SMEs and VCSEs in our projects, and these changes will further open up opportunities, making it easier for local enterprises and social value partners to access public contracts and deliver impact within their communities.

Best Practice for NWCH and Our Partners

• Engage Early: We’re committed to consulting with communities, clients, and stakeholders from the outset to shape social value priorities that matter locally.
• Set Measurable Outcomes: By using frameworks like TOMs (Themes, Outcomes, Measures), we ensure our targets are clear, relevant, and achievable.
• Embed in Contract Management: Social value is built into our performance monitoring and reporting, so it remains a focus throughout project delivery.
• Foster Innovation: We encourage collaboration across public bodies to maximise opportunities for innovation and impact.

In summary, the Procurement Act 2023 gives NWCH and our partners the tools, and the responsibility to deliver real, lasting social value through every project. By embedding social value at every stage and focusing on measurable outcomes, both NWCH and member frameworks across NACF can ensure our work delivers benefits for communities, the environment, and the wider economy.