Social Value Act is a fantastic opportunity to give public procurers 'real teeth' when selecting partnerships
With budgets reduced in central and local government and little prospect of them rebounding in the short term, public, private and third sectors all have to think of doing things differently.
It's no coincidence that the government has implemented new legislation that mandates full consideration by the public sector of a delivery partner's potential to provide economic, social and environmental benefits as part of any contract they are entering into. The Social Value Act , which became law in February 2012, applies to most contracts and framework agreements.
This is welcome news for organisations who have made it part of their DNA to deliver genuine social value over and above what is mandatory in a contract with a public body.
I believe how companies engage with communities, using their resources to drive skills and jobs that leave real legacy, is going to be critical for businesses over the next decade.
We are entering an era where companies need to demonstrate in even more detail what they are putting into local economies. We often see what they are taking out when they are awarded large contracts, yet this success has to be matched by a programme of inward investment aligned at delivering real value for local economic needs.
At Willmott Dixon, we feel so strongly about this that we have outlined our ideas in a report called Transforming Communities, which sets out how the purchasing power of local authorities can be maximised to even greater effect when it comes to influencing the role of the private sector in supporting local growth. This report aims to give useful pointers to help procurers harness the potential of their service providers and in doing so create real opportunity and a lasting legacy for people in their neighbourhoods.
It's a fantastic opportunity to create change; the Social Value Act gives public procurers real teeth when considering who to partner with, enabling councils and wider public bodies to select a partnerthat can genuinely impart value and help address the wider needs of a local community.
This approach at Willmott Dixonis exemplified most recently in Birmingham, where we are responsible for the long-term repairs and maintenance of 60,000 properties. As part of our commitment to the area – and indeed to our sector – we have invested £1m to create the 4Life academy, a national training centre that will provide opportunities for 2,000 people to learn new skills.
Through this training centre, our own employees as well as colleges, community groups and local residents will get access to a dedicated facility that will help long-term work opportunities. With nearly one million young people not in education, employment or training,the academy will work to deliver technical and trade skills, as well as help with job skills such as IT and CV writing.
We have plans for future such centres in other parts of the country and hope this approach inspires other companies.With clients now able to hold companies to account on commitments made in the tendering process, we will see more and more examples of investment in community infrastructure, delivering real benefitsrather than headline-grabbing, empty promises made while tendering for large contracts
Chris Durkin is chief executive of Willmott Dixon Support Services
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