Application of the Building Equality Policy
The Building Equality Policy applies to all publicly funded construction projects that meet the following requirements:
- Valued at $20 million or more (excluding GST)
- Request for Tenders released to market from 1 January 2022
The policy applies to projects meeting the threshold requirements regardless of procurement model, including to projects delivered using the following models:
- Construct-only
- Design & Construct
- Collaborative Design & Construct
- Partnerships Victoria agreements
- Alliance
- Incentivised Target Cost
- Managing Contractor
- Other bundled models
The policy is implemented through the Social Procurement Framework. It aligns with the Women’s equality and safety objective.
The policy applies to construction projects (incorporating early works and construction phases), including individual projects, public private partnerships, alliance contracts, market-led proposals and joint ventures.
See Construction mandated agencies for the list of Agencies that must comply.
The policy does not apply to:
- Projects contracted before 1 January 2022
- Request for Tenders released to market before 1 January 2022
- Contracts for non-construction services such as:
- design
- operation and management
- Contracts that have not been subcontracted by the contractor
- Grants
Values and thresholds listed in the policy
Thresholds refer to the total budget allocated over the life of the project. It does not refer to the value of individual contracts.
For example, the total value of the project is $20 million (excluding GST). It involves several contracts, including design, early works, construction, and maintenance. In this case, Building Equality Policy requirements apply to early works and construction stages.
Consider applying the policy if the estimated project value is close to $20 million (excluding GST). For example, if the total project value is $19.9 million (excluding GST). Contingency spending may increase the value of the project over $20 million.
Procurement planning
Buyers must complete a social procurement plan for each individual procurement activity valued at or above $20 million (exclusive of GST).
Procurement on construction projects with a total project budget of $20 million (exclusive of GST) must include:
- Building Equality Policy requirements
- Social Procurement Framework requirements
- Other policies as may apply
The Building Equality Policy requirements include three actions that are required to be complied with.
See the Social procurement plan template.
Invite offers
Buyers must notify potential tenderers of policy requirements and include policy requirements in market approach documents.
Expression of Interest
At this stage, potential tenderers will need to be informed that the policy will apply to their tender submission.
During the tender process
For construction, clauses related to social procurement and building equality policy have been embedded in approved:
The Request for Tender condition terms cover definitions, conditions of tender, draft contract, and response schedules.
The Building Equality Policy response schedule 4B will replace the Women's equality and safety response schedule 4A.
Buyers should include an overview of applicable procurement-related policies in tenderer briefings.
Evaluate offers
The minimum weighting recommended for Building Equality Policy requirements is 5%. The recommended minimum 5-10% weighting for other Social Procurement Framework objectives is separate.
The three policy actions carry equal weight in the tender evaluation.
Action 1: Meet project specific gender equality targets
Action 1 equates to 1/3 of the Building Equality Policy weighting.
Buyers will score responses from tenderers in the social procurement commitment proposal for meeting the gender equality targets in Action 1.
Scoring of commitments will consider a tenderer’s ability to meet the targets.
Action 2: Engage women as apprentices and trainees
Action 2 equates to 1/3 of the Building Equality Policy weighting.
Buyers will score responses from tenderers in the social procurement commitment proposal for meeting the apprentices and trainees target in Action 2.
Scoring of commitments will consider a tenderer’s ability to meet the targets.
Action 3: Require Gender Equality Action Plans
Action 3 equates to 1/3 of Building Equality Policy weighting.
Buyers will confirm that the tenderer has submitted the two Gender Equality Action Plans:
- An Organisation Wide Gender Equality Action Plan using the prescribed template
- A Project Specific Gender Equality Action Plan using the prescribed template
Strategies should address what the mandatory action is requesting, i.e. if there are requests for the project or organisation to ‘set targets’ or ‘review job requirements’ then the response should include this. Timeframes and the details of those accountable for implementing the strategy should be included.
Scoring is either complete or incomplete:
- Complete means the audit has been filled in correctly and all mandatory actions in the two Gender Equality Actions Plans have:
- A minimum of one strategy that has been put forward for each mandatory action
- A name, job title and timeframe has been provided for each strategy
- Incomplete – if the audit has not been infilled or if one or more mandatory actions in the two Gender Equality Action Plans have:
- No strategy provided
- A name, job title and timeframe has not been given for each strategy
Finalise the contract
Buyers may negotiate and finalise the social procurement commitments including Building Equality Policy, made by the tenderer. The final commitments will form part of the contract.
Successful or unsuccessful tenderers may request feedback on their response. This should form part of the debriefing process.
Manage the contract
The Building Equality Policy is subject to a transitional implementation period until 1 January 2024.
Buyers should consider a facilitative approach to managing contractor performance during this period. The approach should focus on:
- Education and awareness
- Improving the number of women in the construction industry
- Building inclusive workplace cultures
Within 20 business days, contractors must report on an inability to meet:
- Policy action targets
- Gender Equality Action Plan mandatory actions
Buyers should then require contractors to outline steps to improve performance.
Verification of the contractor’s performance should be undertaken at practical completion.
The Department of Government Services Assurance team is responsible for compliance and monitoring of the Building Equality Policy.
From 1 January 2024 penalties may apply for non-compliance as determined by the Buyer.
Reporting requirements
Buyers must set up reporting requirements in the Victorian Management against the Women’s Equality and Safety objective.
Buyers will receive the following reporting from contractors:
Action 1: Achieve gender equality targets
Progress tracking and recording of actual hours against the baseline every 6 months.
Action 2: Engage women apprentices or trainees
Progress tracking and recording of actual hours against the baseline every 6 months.
Action 3: Require Gender Equality Actions Plans
Every 12 months during the life of the project:
- Progress against Organisation Wide Gender Equality Action Plan
- An updated Organisation Wide Workplace Gender Audit
Every 6 months during the life of the project:
- Progress against Project Specific Gender Equality Action Plan
Buyers are responsible for ongoing monitoring of the social procurement commitments. This includes reporting on new, in progress and completed projects.
Help and support
For advice and support, contact the Social Procurement Assurance team.
For information about the Building Equality Policy, contact the Social Procurement Policy and Capabilty team.
Access the Building Equality Policy - Define terms for further information.
Reviewed 17 May 2023