With the Procurement Act 2023 now in force, the emphasis on social value within public sector procurement has strengthened significantly. What was once often seen as a positive addition to a project is now a decisive factor in awarding contracts.
While cost and technical delivery remain critical, contracting authorities are placing a significantly increased weighting on the ability of bidders to demonstrate genuine, measurable benefits to local communities. Applying 30% weighting on the delivery of social value for a single contract is not uncommon.
Steve Butterworth is CEO of Neighbourly
Success in bidding is not about the quality of bricks and mortar alone. Developers are increasingly expected to evidence how their projects support positive human outcomes – whether through employment opportunities, skills training, or environmental improvements – particularly for those living closest to developments. And the expected outcomes are evolving with an increasing focus on how they directly benefit the circular economy.
It is important to distinguish this procurement-driven focus on social value from planning obligations under the Town and Country Planning Act 1990. Of course, Section 106 agreements remain a vital part of the planning system, requiring developers to contribute to local infrastructure such as schools, roads, or affordable housing as a condition of planning approval. These are legally binding and transactional in nature, operating separately from procurement rules. By contrast, social value commitments under the Procurement Act are evaluated during the tendering of public contracts and are embedded into delivery expectations across a project’s lifecycle.
Procurement leads increasingly want to see community outcomes built into projects from the outset, not added as afterthoughts. And with contract management under the new regime requiring closer monitoring, authorities will expect to see hard proof that social value is being delivered well beyond contract award.
Delivery and Measurement are therefore crucial elements of this shift. Broad claims about community benefit no longer suffice; impact must be tracked and evidenced with the same discipline as costs and build schedules. Similarly, poorly evidenced/validated inputs are increasingly under scrutiny, and it’s become more important than ever to demonstrate the ‘workings out’ that exist underneath the measurement – something that many public sector bidders struggle with when delivering social value at scale. Developers who can consistently demonstrate and clearly evidence their outcomes – whether through volunteering hours, impact funds, jobs created, apprenticeships delivered, or reductions in carbon emissions – will be better placed to win contracts and establish long-term credibility.
Procurement leads increasingly want to see community outcomes built into projects from the outset, not added as afterthoughts. And with contract management under the new regime requiring closer monitoring, authorities will expect to see hard proof that social value is being delivered well beyond contract award
Delivering this kind of authentic community impact cannot be achieved in isolation. While developers bring the expertise to deliver infrastructure, they are not always best placed to know what local communities value most – and in some cases, by their own admissions, neither are the local authorities. Partnering with local charities, voluntary groups, and social enterprises can provide insight and ensure that investment translates into relevant, targeted, and credible impact – especially when the good causes have specifically posted their needs.
The value of such collaboration often outlives the construction phase. Grassroots partnerships can leave behind stronger community infrastructure – whether in the form of new skills, improved services, or enhanced resilience. This builds trust in development itself, helping to shift scepticism among communities into greater support for projects.
From a commercial perspective, the case is also strong. With social value weightings in tenders now substantial, the ability to demonstrate measurable community outcomes has become a competitive advantage. At the same time, embedding social value into project delivery supports wider ESG (environmental, social and governance) goals and provides the data, evidence and human stories that investors, regulators, and employees increasingly expect to see.
Reputation is another dimension that cannot be overlooked. Communities are more likely to welcome projects when they can see tangible benefits locally. Over time, developers who consistently honour their commitments are recognised not only for the physical assets they deliver but for their role in strengthening the fabric of local communities – which inevitably makes them a procurement favourite in the selection process for future developments and government backed initiatives.
The Procurement Act has raised expectations, with social value steadily moving from the margins to the heart of public sector procurement. Developers who embrace this shift and embed measurable, community-led outcomes will be best placed to succeed in winning contracts and in leaving behind stronger, more resilient communities.
Steve Butterworth is CEO of Neighbourly, a tech-for-good platform that connects businesses with local good causes to deliver measurable social impact through volunteering, product surplus redistribution, and financial donations.