Earlier this year, the UK Procurement Act 2023 came into effect, and fundamentally changed the way by which suppliers to the public sector operate. Key changes, introduced by the act include:

• A Single, Streamlined Regulatory Framework
• Simplified Procurement System that aims to improve access for SME’s
• Greater Focus on Social Value and maximising public benefits
• Improved transparency throughout the commercial lifecycle
• More consistent feedback for suppliers from public bodies
• Tougher action on underperforming suppliers who pose unacceptable risks

The Procurement Act 2023 seeks to further embed social value into procurement decisions, making it a critical factor in contract awards. UK Public Sector Tenders require a minimum 10% weighting for social value under the Social Value Model (PPN 06/20).

(Our recent eBook provides more details on the details and requirements of the Procurement Act, which you can access here).

Responding to these requirements are not without challenge.

Different Expectations

One of the most fundamental challenges is the ambiguity surrounding what constitutes ‘social value’. While frameworks provide a structure, interpretations still vary across clients, contractors, and geographies.

For example, one client may prioritise local employment and apprenticeships, while another might focus on community engagement or environmental enhancements. This fluidity can lead to misalignment in expectations and outcomes, especially when operating across multiple jurisdictions or working with a diverse supply chain.

Measuring Social Value

Measuring social value is inherently complex. Quantifying intangible or long-term outcomes such as improvements to community or better mental health is not easily reduced to standard metrics.

Even where metrics exist (e.g., number of apprenticeships or local spend), attribution remains a challenge. Can a single project truly take credit for an individual’s long-term employment? Does spending locally automatically correspond to a societal benefits? These questions reveal the difficulty of establishing causality and the risk of overstating impact.

Supply Chain Capability

Smaller suppliers and subcontractors may lack the education, awareness, and resources needed and may struggle with the technical and administrative burden of tracking and reporting social value outcomes. This can make it difficult for main contractors to develop a complete picture of performance.

Our handy eBook can help you understand and overcome many of the challenges associated supplier engagement, which you access here.

Lack of Standardisation

Multiple frameworks are in play across the UK - including government frameworks, bespoke client frameworks, and sector-specific models. This fragmentation makes it difficult for contractors to standardise approaches or benchmark performance across projects. Manual reporting processes or complex technology systems with limited integration can often resulting in siloed or misaligned data.

Short-Term Projects vs. Long-Term Outcomes

Many social value outcomes take years to materialise, yet construction projects often operate on short cycles. The disconnect between project timelines and social impact makes sustained value delivery and tracking difficult.

Moreover, once a project is complete, mechanisms to maintain or evaluate long-term social value are frequently absent, resulting in a loss of accountability.

Data Scrutiny

Data scrutiny, audit risks, and accusations of greenwashing are a major concern for organisations across the construction industry. Organisations want confidence in the data they are collecting and presenting to stakeholders.

We explored the risks of greenwashing in a recent blog post. In it, we featured a study by the Harvard Business Review found that customers are receptive to the gap between an organisation’s stated goals and actual activities; the consequence of which is an overall drop in customer satisfaction.

Limited buy-in from suppliers, poor standardisation of data, and oversights in the data collection process can each call the validity of an organisation’s sustainability reporting into question, in turn, impacting their ability to effectively align with Social Value Frameworks.

How can your business respond?

Effective reporting structures, supported by a comprehensive ESG Reporting platform like SustainIQ, ensure that regardless of how Social Value frameworks might change, your business is prepared.

Automations and integrations with third-party software help to eliminate data siloes and ensure standardisation.

SustainIQ can ensure your business has the data necessary to ensure that your business can quickly and easily respond, helping to maintain compliance and accountability, and exceed stakeholder expectations.

About SustainIQ

SustainIQ is a comprehensive ESG reporting software designed to help businesses measure, monitor, and report on sustainability performance. Covering four key pillars—Responsible Procurement, Environmental Management, People, Health & Diversity, and Community Engagement & Partnering—SustainIQ enables users to track over 200 ESG metrics in real-time, ensuring compliance with key reporting frameworks and standards.

To learn more about SustainIQ or to arrange a demo click here.