The Toolkit will ensure that decisions around desired outcomes are built in and executed from the earliest possible opportunity and through the life of the asset. This will make it easier to identify: 1) Why decisions were made; 2) Who made the decisions; and 3) When (if applicable) perceptions of ‘value’ were changed during the lifecycle. For example, if a design element is changed, it should be changed with full view of the impact it will have on the outcomes of the project and assets.
The Value Toolkit is being developed through collective innovation. There are over 120 organisations working in partnership with Construction Innovation Hub to create it. There is a significant programme of market engagement, targeting thousands of supply chain partners, which will ensure the wider sector have a voice in the development and are prepared to respond to value-based decision-making.
The Value Toolkit sets to redefine value away from financial value and instead introduce capital categories of People, Social, Natural and Manufactured. This mean that while cost and capital risk are still key considerations in decision-making when planning construction programmes, they should not be the only factor. The Value Toolkit will help clients reach procurement decisions based on whole-value and not solely on lowest price.
Environmental impact is a critical element of the Natural Capital category in the Value Definition module, meaning the Value Toolkit supports decisions that will drive a reduction in carbon emissions through every project delivered, both in construction and operation phases. It prompts decisions around air quality, land quality, water quality, and biodiversity and will help the industry accelerate towards its target of NetZero emissions as a sector by 2050. The continuous measurement of value performance throughout delivery and operation will not only help clients and industry to maximise value on each project, but the performance data collected can be used to inform both future projects and also policymakers.
Wellbeing is a crucial area of focus within the Human Capital category of the Value Definition module, which will support decisions that benefit the health of both construction workers and end-users of buildings.
The Construction Innovation Hub is working closely with the Capitals Coalition to explore international opportunities for the Value Toolkit.
The Value Toolkit is focused around improving the procurement process so that value-based decisions sit at its heart. The Procuring for Value module draws on an Investment Value Index (IVI) which is determined at the Value Definition stage, and acts as the primary means to evaluate choices between suppliers. It will provide transparency to the market on how purchasing decisions have be made.
The Construction Innovation Hub and its partners are engaging actively with clients across government departments and the private sector, through a Client Advisory Group. Those involved in development and trials include the Departments for Education, Transport and Health; the Ministry of Justice; the Defence Infrastructure Organisation (DIO); the Welsh Government; Environment Agency; YTL Developments; LandSec; NACF; and SFT.
The Value Toolkit is entirely built around the need for a shift towards whole-life value. The wasteful, unproductive and inefficient practices, which have long been standard for the sector, need to give way to value-based construction where benefits for the end users, and social and environmental impacts are baked into the way programmes are planned and delivered.