One of the UK's largest construction companies aims to boost the use of social enterprises in business. Wates Group, one of the UK's biggest construction companies has launched the building industry's first national brokering service. The aim is to boost the use of social enterprises at all its construction sites with a target of spending £5m within the sector by 2015, which could translate into as many as 250 new jobs.

Simon Birch

The Social Enterprise National Brokerage service is being run in partnership with Social Enterprise UK, the sector's national body. The service will provide a "one-stop shop" for teams of construction workers required to source services from social enterprises at each of Wates' construction sites. Support will be offered through an online directory and telephone helpline.

Andy Hobart, managing director at Wates, says: "The construction industry offers great opportunities for major contractors and suppliers to work with social enterprises to achieve positive social and economic impact on communities. We are totally committed to increasing social enterprise as an integral part of our procurement process."

Social Enterprise UK says that the move is a sign that more private companies working in the public sector are embracing the Social Value Act and trading with social enterprises for their access to local labour markets and expertise in creating social value.

Nick Temple, director of business and enterprises at Social Enterprise UK, says: "More and more companies are approaching us asking how they can better work with social enterprise and really benefit local people and their communities. With the Social Value Act now in full force and an emphasis on creating added social value in public sector contracts, this trend is set to continue."

One of the many social enterprises that stand to gain from this initiative is the award-winning Brighton and Hove Wood Recycling Project. Its founder and managing director Richard Mehmed says: "This is an important initiative that we very much welcome as it has the potential to make a big difference to social enterprises around the country, including our own network of 25 community wood recycling projects. It will encourage buyers to look for a social enterprise and consider using one for a particular service. This puts social enterprises firmly on the Wates' radar."

Mehmed also commends Wates for initiating the project against a backdrop of a struggling national economy. "It's very brave of Wates to launch this public commitment to social enterprises at a time when the building trade is under such pressure," he says. "This initiative will act as a beacon within the building industry to follow Wates' lead."

The project marks the first major private sector initiative since the Social Value Act came into force earlier this year with the aim of transforming the way that billions of pounds are spent in local government, Whitehall and the NHS.

"Wates are setting the benchmarks getting social enterprises in their corporate supply chain and making an enormous difference to local job markets and the communities in which they work," says Temple. "This brokerage service will not only influence the construction sector, but the wider business community too."

Wates is a major contractor within the public sector, which currently accounts for 70% of its turnover. This project aligns to Wates' commitments under its Reshaping Tomorrow initiative to create 5,000 employment and training opportunities for disadvantaged groups by 2015. (http://www.theguardian.com/social-enterprise-network/2013/aug/08/construction-branches-out-social-enterprise)

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