A new report published today by the Association for Consultancy and Engineering (ACE) explores the potential for the development of a new approach to procurement, which places a greater emphasis on value. Measures for Successful outcomes: the five capitals approach argues that value needs to be considered in a holistic way by exploring the natural, human, social, manufactured and financial capitals for every project and programme.
Through the sharing of best-practice, the report highlights where the industry is already leading the way in the measurement of impact and in developing metrics across the different capitals. It also explores in more detail how the capitals are interconnected and how they relate to wider issues such as government procurement and the Treasury’s ‘Green Book’, as well as the UN social development goals and the Net Zero agenda.
Natalie Cropp, chair of ACE’s sustainability group and sustainability director at Tony Gee, said: “While not providing all of the answers, the five capitals approach provides a clear framework where finding a common language is one of the major hurdles that need to be overcome. This paper does a great job in kickstarting that conversation.”
Keith Waller, programme director for the Construction Innovation Hub said "We welcome the publication of Measures for Successful outcomes: the five capitals approach and are delighted to be working with ACE as we develop our Value Framework. This framework will enable clients from both public and private sectors to make informed choices that are not based simply on how cheap a service or project can be bought, but by how much value is created, allowing wider social, economic and environment outcomes to inform decision-making and whole life performance measurement."
The report will be launched at a special launch webinar at 12 noon on Wednesday 27 May 2020. Keith Waller and Ron Lang of the Construction Innovation Hub will speak at the launch webinar and will share how the report has already positively impacted their work on value for the Construction Leadership Council.