In what ways can construction companies provide social value following the PPN06/20 mandate?

The construction industry has the power to shape not only physical landscapes but also the social fabric of our communities.

Following the introduction of Procurement Policy Note PPN06/20 in 2020, construction companies are now mandated to consider and evaluate social value in all central government procurements. This requirement means that bids for public sector contracts must include proposals for ways to improve the economic, social and environmental well-being of the communities in which they work.

Auriga Services wants to support Tier 1 main contractors to administer these changes in order to create real societal value by ensuring that every child has access to well fitting clean school uniforms, access to food and heating, within homes that aren’t missing essential white goods and furniture.

What is PPN06-20?

PPN06-20, or ‘Taking Account of Social Value in the Award of Central Government Contracts,’ is a strategic directive introduced to guide the procurement practices of the public sector. It stands as a testament to the evolving understanding of the broader impact that contracts can have on society, the economy, and the environment.

To truly grasp the significance of PPN06-20, we need to rewind to the Public Services (Social Value) Act 2012—a pivotal milestone that established the foundation for social value considerations. This act urged public sector bodies to consider whether proposed procurements would enhance the well-being of the relevant community. However, the weight afforded to these considerations was often discretionary, leading to variability in its application.

PPN06-20 redefines this landscape by making social value a mandatory consideration. The policy highlights that social value must be explicitly evaluated in all procurement processes. This shift from a discretionary consideration to an evaluative parameter marks a significant departure from the past.

How do the updates in PPN06-20 affect the construction industry?

This policy isn’t just another bureaucratic update—it’s a game-changer that is reshaping the construction industry in profound ways.

The most significant shift brought about by PPN06-20 is the elevation of social value from a mere consideration to an actively evaluated parameter in the procurement process. This means that the impact of a project on the broader community—both socially and economically—is no longer a peripheral factor.

Contractors and construction companies are now mandated to incorporate robust social value strategies into their bids, aligning their projects with societal well-being.

How can Auriga help the construction industry to increase its social return on investment?

The construction industry has the opportunity to extend its influence beyond the tangible structures it creates through PPN06-20. By joining forces with Auriga, together, we can be there individuals and families in our communities that are experiencing challenging times.

Research by The Children’s Society found that 1.8 million kids are wearing ill-fitting, incorrect and oftentimes dirty, school uniforms and when you combine this with the fact 1 in 20 families do not have a washing machine, this really serves to paint the very real and very stark reality of the economic hardship experienced throughout our communities.

The cost of living crisis continues to create challenging choices for people, do you choose to heat your home or feed your family, do you choose to wash your clothes or heat your home, do you choose to keep the electric on or have dinner? These are some of the very real choices currently being faced every day by people across the UK.

Together, with our partners, we deliver lasting impact and bring about positive change for countless people across the UK, meaning every individual we support has the opportunity to live in a fairer, more equitable society.

We therefore invite the construction industry to partner with Auriga so we can administer key social value projects on your behalf, and get the support to the people who need it most.

Our vision also extends beyond immediate aid, we are striving to establish enduring social value partnerships. By integrating social equality initiatives into their bids for future projects, we are aligning with the evolving landscape of bids where Environmental, Social, and Governance (ESG) considerations play a pivotal role. With high-value projects often linked to government funding, contractors are now mandated to incorporate social value elements into their proposals.

Auriga is at the forefront of this transformation, creating a synergy that not only benefits businesses but uplifts communities with the essentials that individuals within our communities need to face life’s challenges.

Find out how Auriga can help you deliver social return on investment.