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With the Procurement Act (2023) making social value requirements more central and enforceable in public procurement, mechanisms like Section 106 are becoming more important in enabling these outcomes to be delivered on the ground. Through a legal requirement to commit to infrastructure to benefit the community, it enables public sector clients to prove their social impact, whether through securing local jobs or delivering apprenticeships. And yet, too often, it can under-deliver.In my experience, this is rarely a failure of policy, but rather a failure of delivery. Too many projects still treat Section 106 as a compliance exercise, something to monitor and report on, rather than a challenge that must be coordinated from the outset.To ensure local government truly delivers on Section 106, early communication via a two-stage open book approach is vital. Start early or risk falling shortThe Woolwich Leisure Centre project, delivered by Morgan Sindall, demonstrates what happens when this coordination is prioritised early.One of the clearest lessons is that social value consideration must begin at the earliest opportunity. It shouldn't just start when spades hit the ground, but from the moment you have won the contract.Project teams must be having conversations from the outset outlining how Section 106 is a shared responsibility. Measurement of impact must be a key point of discussion, with KPIs set around areas such as local needs analysis, skills gaps and community need.This supports the whole project team to work towards a common goal, through clear visibility of impact and outcomes. Bridging the gap between ambition and realitySection 106 obligations are often ambitious and rightly so. But they also expose a practical challenge.Local employment targets, for example, can be difficult to achieve in areas with skills shortages, particularly when requirements limit recruitment to within the borough. At Woolwich, this challenge was addressed through earlier engagement. Close collaboration with the borough's job brokerage team helped align training provision with project needs from the outset, ensuring local people were prepared to access opportunities. While 39 jobs were created for members of the community, meeting Section 106 obligations is not just about creating jobs, it is about providing the right conditions to enable people to take them.The supply chain challengeAnother persistent issue is delivery through the supply chain. While Section 106 obligations sit with the client, much of the delivery responsibility lies with contractors and their supply chain partners. Without clear communication, this can create disconnects.At Woolwich, this was addressed by communicating requirements clearly from the start and reinforcing them throughout the delivery phase. For example, through working closely with supply chain partners, a Knowledge Quad was created where young people not in education, employment or training (NEET) could access accredited programmes such as carpentry or plumbing. Forty local education events were held, with over 1000 apprenticeships weeks undertaken. Delivering lasting public value For local government, the implication is clear. Success depends on engaging partners early, aligning expectations clearly, and maintaining coordination throughout the lifecycle of a project.When that happens, Section 106 moves beyond compliance and becomes a mechanism for genuine, lasting impact.Because ultimately, the success of Section 106 is not defined by what is written into contracts, but by what collaboration can achieve for communities. James Wright, Head of SCF (South East & London)

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JOBS

Section 106 is only as strong as the conversations behind it

By James Wright | 20 July 2026

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