Construction SMEs risk losing out in a competitive market if they don’t embrace the use of social value in procurement, so says a new report by the Chartered Institute of Building (CIOB).
The report, Social Value and SMEs, says a relatively small number of construction SMEs are up to speed with what social value is, how it is delivered and how it is measured. It predicts those who choose to ignore it will lose out when it comes to bidding directly for work in the public sector or for Tier 1 companies, which have had no choice but to move fast on social value since it was introduced into public sector procurement in 2020.
It also adds that social value is more likely to feature in private sector procurement over time, as councils are expected to factor it into planning applications, meaning almost all projects will require its suppliers and contractors to demonstrate social value.
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