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This paper sets out the methodology and analytical approach underlying the work on the Built Environment Bank.
The Built Environment Bank is an online tool for measuring the social value created within the supply chain and delivery of construction sector projects. The total social value of each project is expressed in monetary terms by the tool, making it easy to interpret results, compare across projects, and use as an input for further analysis (e.g. cost-benefit analysis).
The tool combines project information, typically collected by construction sector companies as part of reporting requirements already, with a stored set of estimated values. Together these produce a measure of the project’s total social value.
The methodology is fully aligned with best-practice recommendations from HM Treasury Green Book: Central Government Guidance on Appraisal and Evaluation (hereafter, HM Treasury Green Book).
A range of approaches are used to value outcomes within the Built Environment Bank. The approaches reflect the different stakeholders impacted. These include wellbeing estimations, evidence from stated preference research as well evidence from literature reviews.
The paper sets out details of the approach taken for each outcome and how the tool considers deadweighting and displacement in calculating a net impact figure.