Delivering more social value across construction projects produces better outcomes for all

A vital contributor to the UK’s economy and communities, the construction industry continues to deliver at pace and create value – despite the pressures the sector faces. Accounting for approximately 6% of the UK’s GDP, this industry drives growth and underpins infrastructure nationwide. These achievements come amid strong headwinds, from the availability of skilled professionals to rising material costs and evolving technology. Yet the sector continues to deliver: bringing added benefits for the communities it works in and for, notably in creating social value with every project.

SCAPE’s Social Value in Construction Benchmarking Report 2025 shows that £1.2bn of social value was created across 418 projects last year, equating to 27.3% social value added. Our report outlines the benefits to local communities and the wider regional economy. Average project size grew to £10.5m in 2024, up 9% year-on-year, while social value spend reached a record high of £1.17bn. Local jobs and spend continued to represent around 27% of contract value, helping strengthen supply chains and stimulate economic growth across regions.

This supports the view that communities benefit from construction projects within their locality, thanks to an improved understanding of social value, outcome-focused delivery from clients and industry, greater inclusion of social value KPIs in contracts and increased competition to win work. Even amidst current challenges, projects continue to generate meaningful social value, demonstrating that impact extends well beyond building infrastructure.

The importance of social value to local communities, and investment in those places, should not be underestimated. Last year saw a 65% increase in local spend, surpassing £1bn for the first time. Nearly all social value – approximately 98p of every £1 – directly supports local jobs and local spend, maintaining consistency with previous years.

This growth reflects stronger relationships between contractors and local and small business suppliers, alongside clients’ increasing focus on identifying local supply chains, aided by better tools and processes.

The rise in local and small business spend also highlights the industry’s growing commitment to supporting and investing in smaller and local businesses. A clear example is the £2.7m Connecting Dumbarton project in Scotland. Delivered through the SCAPE Scotland Civil Engineering Framework, it revitalised the area around Dumbarton Central Station. With 94% SME engagement and 75% local spend, it supported the local economy while improving active travel routes and reinstating historic links. The project also delivered wider social value through a Construction Academy for young people and in-kind support to the Wee Chatty Café. By investing more in local suppliers and small businesses, the sector is helping build supply chain resilience and sustainable economic growth.

Our data shows the North West led last year, with 110 projects and £235m in social value, followed closely by London, with £197m across 26 schemes; the South East, with £192m across 22 projects; and Yorkshire and The Humber, with £123.5m across 27 projects.

Looking ahead, we expect larger projects to remain strong social value drivers, given their higher ROI. Projects valued over £20m have become the largest contributors, delivering 9% more than lower-value projects and 20% more than those over £75m, achieving an ROI of 30%.

Legislative changes have broadened the debate around social value. The Procurement Act 2023 is a major influencer, shifting focus from price under ‘Most Economically Advantageous Tender’ to overall value under ‘Most Advantageous Tender’.

With greater emphasis on social value in legislation and procurement, continued growth is likely. This will give public procurement more scope to prioritise meaningful and sustainable impact.

The opportunity to report against social value KPIs will also provide transparency and accountability. The increased focus on SMEs and local needs analysis will support economic growth, boost local spend and create employment opportunities.

Our Social Value Benchmarking Report 2025 suggests that both private and public sectors remain committed to delivering social value: an outcome benefiting local communities, economies and wider society.