Balanced scorecard

The government suggests that a balanced scorecard (BSC) approach to procurement is:

The approach can be used on any projects, but in October 2016, was adopted by the Cabinet office for projects of more than £10 million. Ref gov.uk.

Government departments are encouraged to adopt the approach where there are clear benefits to doing so, when designing major works, infrastructure and capital investment procurements where the value is more than £10 million. This including works in the National Infrastructure and Construction Pipeline, published in December 2016.

The approach has already been used by the Olympic Delivery Authority, and for the HS2 programme, as well as on private projects such as the procurement of Heathrow T5.

The government suggests that the ‘model balanced scorecard strategic policy themes’ are:

• Solutions quality.
• Cost.
• Supply chain.
• Employment / skills.
• Environmental sustainability.
• Health and safety.
• Outcome benefits.

All departments with in-scope construction, infrastructure and capital investment procurements must:

• Consider each of the Strategic Themes and Critical Success Factors (CSFs) of the model scorecard in relation to the objectives of the project, determining whether there are associated requirements that should be incorporated into the procurement.
• Identify whether for a specific exercise there are other project or sector-specific themes and CSFs with associated requirements.
• Produce a procurement-specific balanced scorecard that captures and communicates the objectives for the procurement, how these relate to specific project requirements and thus to evaluation of tenders.
• Publish their balanced scorecard with the procurement documentation to form a clear summary of how the procurement will deliver the project vision.

For more information see: Procurement Policy Note – Procuring Growth Balanced Scorecard, 14 October 2016.

The balanced scorecard approach has subsequently been endorsed by:

• Industrial Strategy: building a Britain fit for the future.
• Construction sector deal.
• Transforming Infrastructure Performance.

[edit] Find out more

[edit] Related articles on Designing Buildings Wiki

• Autumn Budget 2017.
• Best value.
• Building our Industrial Strategy: green paper.
• Cities as systems - BRE Solutions for urban environments.
• Construction sector deal.
• Industrial Strategy: building a Britain fit for the future.
• Procurement of Heathrow T5.
• Procurement.
• The Public Contracts Regulations.
• Transforming Infrastructure Performance.