Building on ACE’s recently released five capitals research, the Construction Innovation Hub (CIH) is developing a new industry-wide definition of value and an associated toolkit, laying the groundwork for a long-awaited transformation in the way procurement decisions are made across the sector.

Working with RICS, RIBA, CIOB and Social Value UK, the project will build a consensus around the definition and measurement of value, with the resulting methodology used to drive consistent value-based decision making throughout all stages of the investment lifecycle – from business case, through procurement and delivery and into operation.

The toolkit will support a data-driven approach to decision making, with consistent project and asset performance data being fed back to identify best practice and inform future decisions. It will allow for a decision-making process which balances strategic policy decisions against specific local or client needs, will ensure the best delivery models and commercial strategies can be chosen and look at value over the whole-life of an asset.

CIH programme director Keith Waller said: “As we get Britain building again, we must resist the temptation to return to outdated practices rooted in cost minimisation and risk transfer and instead focus on new ways of doing things which are delivering better long-term outcomes. At the heart of this is shifting away from a historic affinity with cheapness to one where delivering value in the widest sense drives decision-making.”

Hannah Vickers, chief executive of ACE commented: “This announcement builds on previous ACE thinking around the five capitals model, taking our research and turning it into a tool client can use. This should be welcomed by all, but especially by Government who will – for perhaps the first time – be able to take a holistic view and ensure procurement truly delivers for people, planet and society.”

The CIH aims to change the way buildings and infrastructure are designed, manufactured, integrated and connected within our built environment by bringing together world-class expertise. It is funded by the UK Research and Innovation’s Industrial Strategy Challenge Fund. Find out more at their website.

The "Relevant Authority Group" which brings together RICS, RIBA, CIOB and Social Value UK will be chaired by Tony Gee's Natalie Cropp, who is also chair of  ACE's sustainability group which produced the five capitals analysis for ACE. Download a copy of our paper on the five capitals approach below, or read her recent blog on the research.