The Association of Consulting Engineers (ACE) is calling on the construction sector to focus on value-based procurement and decision making in order to meet carbon net zero and sustainability targets.
ACE sustainability group chair and Tony Gee sustainability director Natalie Cropp said that a cultural shift was needed to deliver more sustainable outcomes as the ACE published its latest report, Measures for Successful outcomes: the five capitals approach.
Cropp, who was lead author on the publication, argues that value needs to be considered in a holistic way by exploring the natural, human, social, manufactured and financial capitals for every project and programme.
“We are a proposing an approach which indexes target and performance metrics for a project, she said. “By normalising the different capital measures against a simple index scale of industry best practice, it is then possible to combine the different elements to assess overall performance.”
According to Cropp, the five capitals approach provides a holistic way to measure value
ACE chief executive Hannah Vickers said that the application of the five capitals outlined in the report will make a “tangible different to project outcomes” and added that the report completes the missing element needed for industry to meet net zero targets through changing procurement practice.
Vickers added that the new report set out both a high level framework for the concept, as well as project case studies to show how the model could be used on any type of project.
Speaking at the launch, Construction Innovation Hub impact director Ron Lang said that his organisation would be working with ACE to embed the five capitals approach and welcomed the new publication.
“The Construction Sector Deal calls for an industry wide definition of value that takes into account more than just capital cost,” he said.
“It is not about changing the process of what we do but about having a robust set of rules on how to assess value. The Construction Industry Hub will build on the report’s findings to create a new methodology for decision making – the report delivers a proof of concept that creates a starting point.”
“We have a web-based tool under development that is not designed to replace the conversation on value between the client, design team and supply chain, but creates a structure to guide the process and evaluate and benchmark different options.
“We aim to drive better social, environmental and economic outcomes through value-based decision-making. This means better outcomes from what we do and how we do it, leading to a more sustainable built environment and a more sustainable model for our industry.”
Cropp said that government needs to work with ACE, the Construction Innovation Hub and Construction Leadership Council to embed the five capitals into their appraisal and business case process. She also urged private sector funders and clients to follow suit and for wider industry and stakeholders to consider this holistic approach to ensure a cultural shift throughout the sector and beyond.
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