Enhancing communities

Our performance

KPI 2016  2015 2016 performance against short-term target Short-term target (2016)  Medium-term target (2020)  Horizon ambition
Number of qualifying projects using LM3 tool 39 projects 38 projects   15% of qualifying projects
80% of qualifying projects Total positive impact of £1.5bn to UK economy

Considerate Constructor Scheme (CCS) average score

37.6/50 38.0/50
  40
2 points above Associates' average score 3 points above Associates' average score
  • Achieved or exceeded short-term target
  • Performance within 10% of short-term target
  • Performance 10% or more worse than short-term target
2016 performance

Under the 2012 Social Value Act the public and private sectors are expected to work together for the broader social benefit of communities.

We have adopted the Local Multiplier 3 (LM3) tool which measures the contribution of our activities towards local economies.  Our long-term target is to deliver £1.5bn of social value, and our short- and medium- targets are to significantly increase the number of projects using LM3 so that we can measure our attainment of the long-term target as accurately as possible.

In 2016, we developed the tool further to enable predictions of local economic benefits before a project starts on site and to monitor the social as well as economic impact of our projects - for example, we can use the tool to measure the diversity of our supply chain.  
 
The Considerate Constructors Scheme is another way of measuring how well we operate in local communities.  It is an independent scheme that benchmarks companies against a code of best practice. In 2016 we registered 209 sites (2015: 201) and won 64 national awards (2015: 49). 
 
Lovell Partnerships has adopted a 25-mile policy whereby it aims to appoint suppliers within a 25-mile radius of its developments.  The division hosts ‘meet the buyer’ events, providing local firms with a chance to learn about an upcoming development and how to get involved.  It also works with local job centres, colleges and community groups to advertise employment opportunities and apprenticeships.  
Under its Priority Schools Building Programme contract, Morgan Sindall Investments committed to its partner, the Education Funding Agency, to create work placements, apprenticeships and jobs on each of the school sites.  To date the division has created 75 jobs on the project which exceeds the target of 40 listed at contract close, and 54 apprenticeship placements, well above the 13 listed.

2017 focus

As a result of the development work carried out on LM3 in 2016, we only used the tool on 39 of our projects.  We are seeking a significant increase in the level of usage in 2017.  

The improvements we have made to the capacity of the LM3 will enable us to learn more about the economic and social benefits of our projects, and identify further opportunities to increase our local contribution.

Risk/opportunities

Local resistance to projects

Impacts

  • Reduced client engagement
  • Community resistance to projects
  • Inability to win contracts and reduced opportunity for growth

Mitigation

  • Robust planning and identification of project risks
  • Active engagement with local communities
  • Associate membership of Considerate Constructors Scheme
  • Use of Public Liaison Officers
  • Use of the ‘LM3’ tool

Opportunities

  • Adding value and direct benefit to communities
  • Providing local employment through apprenticeships
  • Leaving a legacy in communities
  • Being seen as a forerunner in addressing economic growth and adding value to communities through our construction activity

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