New Practice Note – Including Social Value in the NEC Facilities Management Contract

NEC, in partnership with the Institute of Workplace and Facilities Management (IWFM) and the Social Value Portal (SVP), have released a new practice note highlighting the importance of social value, particularly in UK public sector contracts.

Ross Hayes, NEC drafter and consultant, said "We are  very pleased to publish this practice note on social value, the first in a series of practice notes 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."

Whilst written for the NEC4 Facilities Management Contract (FMC), the guidance in the practice note is equally important and valid for other NEC forms of contract. The FM practice notes are written to assist clients and practitioners to identify how bespoke requirements, such as social value, can be incorporated into the FMC.

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 NEC4 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.”

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. The practice note sets out the principles and purpose of social value and does so using the National Themes, Outcome and Measurement (NTOMs) methodology. It then explains how the social value requirements would be incorporated into the Scope and Performance Table in a NEC FM contract.

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.”