Community Benefits Statement

Hillcrest is committed to investing in our local communities by delivering a Community Benefits

programme through a range of activities for our customers and communities.

By setting out our ambition for investment clearly, we hope a wide range of stakeholders from our
tenants, suppliers, contractors and investors will share our approach to work in partnership and
make a difference for the communities we work within.

1. Community Investment at Hillcrest

This Community Benefits Statement supports Hillcrest to deliver its Procurement Strategy 2021-
2025. It ensures compliance with Sections 24 and 25 of the Procurement Reform (Scotland) Act
2014, which sets out a requirement that:

 Public contracts over the value of £4m will incorporate appropriate Community Benefit
requirements and opportunities;
 Delivering Community Benefits is a core part of contract compliance.

Community Benefits are one of a range of social and environmental considerations that can be
included in public contracts and frameworks. These requirements must be compatible with the
procurement principles, equal treatment and non- discrimination and transparency and
proportionality. Community Benefits have contributed to a range of national and local outcomes
relating to employability, skills and tackling inequalities by focusing on under-represented groups.
Scottish Government Procurement Guidance suggests that Community Benefit requirements to be
considered in public procurements may include (but are not limited to) the following:

 Generation of employment and training opportunities,

 Vocational training,
 Up-skilling; equality initiatives;
 SME/supply chain/third sector development;
 Building capacity in community organisations;
 Educational support initiatives;
 Work experience;
 Minimising negative environmental impacts.

The Procurement Reform (Scotland) Act 2014 aims to increase the use of Community Benefits within
public contracts and framework agreements. Under section 25(1) of the Act, it is now a legal
requirement that Community Benefits are considered for all regulated procurements with an
estimated value of £4m or above.

Although the level of contract values within the legislation, for mandatory benefits, is fairly
significant, Hillcrest is striving to achieve small scale benefits from low level contract values too.
These benefit levels will be set to ensure that SME and Micro businesses, are as able to support the
delivery of these as well as large or national scale business.
In line with Sustainable Procurement, the Scottish Government Guidance has advised that
Community Benefit requirements in procurement policies are outlined as below:

 There is a presumption that where there is an opportunity to deliver community benefits,

appropriate requirements will be included in public contracts and framework agreements
 Contract or framework suitability and capacity needs to be addressed on a case-by-case
basis – value, duration, local factors and the nature of the supply base will all have an impact
 Requirements should be robust, relevant and proportionate so that they can be judged on
objective and measurable outcomes
 Discrimination should be avoided in the wording of requirements
 Monitoring of contract deliverables and outcomes is essential to ensure contract compliance

To ensure that we gain maximum relevance for all Community Benefits collected, Hillcrest will look
to include benefit clauses across all different types of procurement activity for Works, Goods and
Services, where relevant.

2. Hillcrest’s Approach

Our approach will entail the consideration of Community Benefits at differing levels of procurement
and contract values. We will include clauses about benefits when Hillcrest feels it is feasible and
reasonable and in the best interest of the contracts being sought.

Hillcrest aims to secure Community Benefits that support and contribute to a wide range of
opportunities for our wider stakeholder community. Therefore, it will not only be Hillcrest projects
or initiatives that can benefit from the activity. This will be part of our drive to provide a range of
services which, along with housing and support services, bring about inclusion and social
regeneration.

There is no ‘one size, fits all’ model for Community Benefits. Hillcrest will deliver a mixed approach
to investment in our communities using a thematic framework of cross cutting activities.

Community Benefits can be included as clauses within procurement routes on a contractual or

voluntary basis depending on the needs of the contract. Any mandatory requirements will be
considered to form part of the contract and non-conformance will be dealt with as a contract
performance issue.

When voluntary clauses are included and are agreed to as part of the contract, then Hillcrest will
endeavour to support the delivery of the Community Benefits by providing time and advice in order
for the benefits to be achieved. Failure of voluntary clauses will not breach the contract.
Bidders must hold the relevant PVG status, insurance and H&S documentation in order to carry out
Community Benefits as appropriate. Hillcrest’s Procurement Team will monitor and action these
requirements prior to programmes commencing.
Hillcrest Foundation

The establishment of a Foundation to receive monetary donations from Community Benefits, aims
to increase access to social and economic opportunities for the wider community. The Foundation
will support community development programmes, educational activities, advice services and much
more. The Foundation has a set of criteria, around which donations will be managed and bid for.
The Procurement Officer will work closely with the Fundraising and Grants Officer to implement the
Community Benefits approach through the Foundation. Please click the link to read our Latest
Annual Hillcrest Foundation and Social Value Reports here - Annual Report 22/23
Social Impact 23/24

All Foundation programmes will fall under one of the themes identified in the Community Benefit
Matrix in section 3 of this statement.

3. Hillcrest Community Benefits Matrix

The following matrix describes our initial themes that Hillcrest will drive the implementation of
Community Benefits.

Theme How we will deliver

Theme 1  Secure commitment from contractors with whom we
Skills development and work that they will provide additional work, training and
employability learning opportunities for people in our local
communities
 Apprenticeship programme delivery
 Supporting student placements
 Further develop school liaison programme
 Job tasters and employability placements
Theme 2  Providing regular opportunities for local SMEs to submit
Local Investment/Supply tender awards included increased scoring for local
chain development delivery.
 Delivering SME and social enterprise bid training and
guidance to encourage local supplier competition
 Using framework/lot based tendering to encourage local
businesses to bid
 Donation of materials equipment, facilities, goods, time
or expertise
Theme 3  Securing Hillcrest Foundation donations through
Community Development Community Benefit contributions as clauses within
tender contracts (see value table appendix 1)
 Deliver community investment through distribution of
Hillcrest Foundation funds
 Provide a range of support in education, recreation,
knowledge transfer or skills workshops and through
Hillcrest Futures Hubs to local community groups,
schools and colleges
 Provision of contractor time/skills or training support to
help build capacity for new business and social
enterprise
Theme 4  Provision of contractor time, skills, mentoring or training
New Business support to help build capacity for new business and
social enterprise development within locality areas
 New business advice and incubation via Hillcrest
Enterprise Ltd
 4. Monitoring and Evaluation

The Procurement Team will manage the Community Benefit process and recording and monitor with
Lead Officers, to ensure fulfilment of Community Benefit clauses within the contract.

The Procurement Team will be the first point of contact for any supplier or contractor seeking to
develop or offer Community Benefits.

Monetary donations will be passed to the Hillcrest Foundation to be managed. The Fundraising and
Grants Officer will report to Committee and Board cycles annually on the allocation and securing of
Hillcrest Foundation funds.

The securing and allocation of Community Benefits as a whole will be reported yearly in the Annual
Procurement report submitted to A&GP and Scottish Government.

Community Benefit Contribution Value Table

The Community Benefit Contribution will be based on the final contract sum from the
contractor/supplier/consultant to be used only for local Community Works and Community Support
Projects in the local area of operations of Hillcrest. The value will be calculated based on the contract
sum (split into agreed instalments payable to at the end of each agreed period). The Community
Benefit Contribution will be a contractual requirement under this contract.

Value Band Estimated Contract % of Spend CB Contribution

Value per Annum
(excluding VAT)
£10k to £250k £10,000.00 2.00% £200.00
£10k to £250k £20,000.00 2.00% £400.00
£10k to £250k £40,000.00 2.00% £800.00
£10k to £250k £50,000.00 2.00% £1,000.00
£10k to £250k £100,000.00 2.00% £2,000.00
£10k to £250k £250,000.00 2.00% £5,000.00
£250k to £500k £500,000.00 1.50% £7,500.00
£500k to £750k £750,000.00 1.35% £10,125.00
£750k to £1m £1,000,000.00 1.25% £12,500.00
£1m to £2m £2,000,000.00 1.00% £20,000.00
£2m to £5m £5,000,000.00 0.75% £37,500.00
£5m to £10m £10,000,000.00 0.50% £50,000.00

The minimum level Community Benefit to be delivered from each procurement activity will be
dependent on the budget contract value irrespective of contract duration. Hillcrest has developed an
assessment system to consistently quantify the requirement. This will also ensure that performance
against the contractor/supplier/consultant is measurable during contract delivery.