Social value in construction: Enabling SME and VCSE success

Earlier this month, Constructing Excellence Midlands Social Value Theme Group hosted 'Expert Advice Live' at our Birmingham office for a morning focused on enabling SMEs and voluntary and community sector enterprises (VCSEs) to succeed within the construction industry.

The event aimed to address challenges head-on, providing practical guidance, sector insights, and opportunities for direct engagement with industry leaders.

Opening doors for SMEs and VCSEs

While social value has become an increasingly important consideration in construction and public procurement, many SMEs and VCSEs continue to face significant barriers to entry.

These organisations often possess the innovation, local knowledge, and community connections that can deliver genuine social value, yet struggle to navigate complex procurement processes and demonstrate their capabilities to larger contractors and public sector clients.

Public procurement regime: A pathway for smaller organisations

Peter Ware, public law and procurement lawyer, provided a detailed examination of the current public procurement framework and how SMEs and the voluntary sector can effectively engage with public contracts. Key points included:

• Understanding the procurement landscape and recent regulatory developments.
• Practical steps for smaller organisations to position themselves for opportunities.
• How social value considerations are reshaping procurement decisions.
• Breaking down barriers to entry and building capability.

He emphasised that while procurement processes can appear daunting, there are clear pathways for well-prepared SMEs and VCSEs to compete successfully and deliver value.

Key takeaways

For SMEs and VCSEs:

• Preparation is crucial: Understanding procurement requirements and social value frameworks is essential before bidding.
• Collaboration creates opportunity: Partnerships and consortia arrangements can help smaller organisations access larger contracts.
• Social value is your strength: Local presence, community connections, and innovative approaches are increasingly valued.
• Relationships matter: Engaging with main contractors and public sector clients early builds understanding and trust.

For the wider industry:

• Genuine commitment is required: Supporting SME and VCSE participation requires more than policy statements; it needs practical action.
• Supply chain diversity delivers value: Bringing smaller organisations into projects enhances innovation and community impact.
• Knowledge sharing is essential: Events help level the playing field and build sector capability.

Looking forward

Equipping SMEs and VCSEs with knowledge, connections, and confidence can strengthen the entire construction sector and enhance our collective ability to deliver social value.

It’s important for industry groups to move beyond discussion to action, creating practical resources that support smaller organisations to succeed and contribute to a more diverse, innovative, and socially responsible construction industry.

We’re here to help. To discuss this topic further, please get in touch.