Social Value in Construction and Why it’s Important

Have you ever wondered about how social value in construction works?

Construction projects can be long-term and have the potential to deliver a massive boost in terms of social value. However, to get the most from your social value efforts, it’s integral to consider the different options and opportunities available to your construction industry business.

Luckily, our experts are on hand today to help you learn a little more about social value in construction projects and what this might mean for your own goals.

What is Social Value?

Social value is a somewhat tricky topic since the definition is generally quite loose by its nature. However, social value is generally a term relating to a project or business’s value to the local community.

Most generally, social value is hence measured on three key metrics or factors: the economic value the project can bring, the local social benefits, and the national social benefits.

Social value is a requirement for all public businesses to consider as per the Social Value Act of 2013, and as such, it’s vitally important for most public construction projects. Social value provides a simple and quantifiable metric to assess the overall value of a project or activity.

The social value may not, however, apply to small-scale, personal projects. However, the businesses involved with the construction, such as contracting staff, may still need to consider their social value and impacts.

How Does Social Value in Construction Apply to Your  Projects?

By their very nature, construction industry projects often have a massive impact on a local community. In short, they are shaping the community’s future – be it for the better or worse. As such, construction industry projects can potentially have numerous social impacts overall.

One of the most apparent social value opportunities for businesses in the construction niche is their ability to provide new housing for the local community. This can boost the area immediately, allowing new people to move in.

However, it also offers social challenges; for example, it could devalue pre-existing properties in the community. Or, it could otherwise leave the community’s current amenities struggling to meet the demand.

As such, when planning a construction project – such as a new housing development – it’s important to consider the impact on the local community.

Many new housing developments are good for a community, especially for affordable housing. However, the new development could have significant negative social impacts if the community’s current infrastructure is not adequate.

Therefore, construction industry businesses should always consider whether they should also supply new facilities – such as shops, schools, and the like – to justify the project and provide an overall positive social value.

However, on a more significant note, it’s undeniable that construction industry projects can significantly benefit the overall economy of a local area.

Construction projects can be very long-term and can provide a massive economic boost to local contractors, so long as local teams are hired. In turn, this can strengthen the area’s overall economy, demonstrating the social benefits construction projects can deliver to a community.

A small number of construction projects may also provide national social value (for example, projects that help achieves the country’s net-zero goals or offer new travel opportunities). However, most construction projects’ social value measures will focus on the local community and economy.

Final Thoughts

Social value in construction industry products is massively important to consider. After all, the construction industry is massive and has a significant opportunity to make a positive social difference.

However, construction projects can also significantly impact local communities for the better and worse.

With this thought in mind, for construction industry projects to remain compliant with the Social Value Act, it’s critical to consider how your project could boost its social value for the local (and potentially national) community.