Procurement: new practice note highlights importance of social value in FM contracts


  • Procurement

19 October 2021


The first in a series of practice notes to support users of the new NEC4 Facilities Management Contract (FMC) has been published by NEC in partnership with IWFM and the Social Value Portal.

These practice notes will address important region and sector specific issues, providing guidance for practitioners and clients on how they can be adjusted and reflected in the FMC contract, which was developed in a collaboration between IWFM and NEC.

The practice note on including social value in the FMC sets out the principles and purpose of social value and does so using the National Themes, Outcome and Measurement methodology, for which IWFM and the Social Value Portal developed the dedicated FM Plug In. It also explains how the social value requirements would be incorporated into the Scope and Performance Table in an NEC FM contract.

Social value in this context refers to the wider financial and non-financial value created by an organisation through its day-to-day activities in terms of the wellbeing of individuals and communities, social capital created, and the environment.

IWFM’s Head of Policy, Sofie Hooper, said: ‘We are delighted with the publication of this new practice note on social value - the first of many on a range of important topics which will help to embed the FMC into our sector. The practice note brings together post-Carillion workstreams to help shift the conversation from cost to value. It integrates our work on the Social Value Plug In measurement framework with the FMC, which was designed specifically for the facilities management market. The note illustrates how the collaboration between the NEC, the Social Value Portal and IWFM can lead to a win-win for all, making a difference one contract at a time.’

Ross Hayes, NEC drafter and consultant, said: ‘We are very pleased to publish this practice note on social value, the first in a series for the new Facilities Management Contract. This practice note addresses an important issue for the FM sector and is the first arising from the close relationship the NEC has had, and continues to have, with the IWFM on this contract. We have greatly appreciated and acknowledge the involvement of the Social Value Portal in producing this guidance.’

Guy Battle, CEO of the Social Value Portal, said: ‘As social value specialists, we’re really pleased to be part of shaping this new practice note which is fundamental to embedding social value across the value chain. The facilities management sector is core to the social value movement, and it’s pivotal that FM businesses have the right guidance available to reimagine how their assets, and managing those assets, can create real community outcomes.’

Click here to view or download the new practice note.

To read more about our collaborations with NEC in the development of the FMC click here, and with the Social Value Portal in creating the FM Plug In for the National TOMs framework click here.