Policy application
In December 2021, the Government announced its Building Equality Policy to improve gender equality in the building, infrastructure, and civil engineering sectors.
The policy is being implemented through the Social Procurement Framework. It aligns with the Women’s equality and safety objective.
The policy applies to all publicly funded construction projects that meet the following requirements:
- Valued at $20 million or more (excluding GST).
- Request for t enders released after 1 January 2022.
Thresholds refer to the total budget allocated over the life of the project. It does not refer to the value of individual contracts.
The policy applies to projects meeting the threshold requirements regardless of procurement model, including to projects delivered using the following models:
- Construct-only
- Design and construct
- Collaborative design and construct
- Partnerships Victoria agreements
- Alliance
- Incentivised target cost
- Managing contractor
- Other bundled models
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.
Contractors must ensure that sub-contractors working onsite contribute to the overall targets across the project. However, sub-contractors are not required to prepare or contribute to the development of an organisation wide gender equality action plan.
Responding to tenders
The policy requires suppliers to undertake the following 3 actions:
- Action 1 – meet project specific gender equality targets.
- Action 2 – engage women as apprentices and trainees.
- Action 3 – require gender equality action plans.
Tenderers are required to address how they will meet or exceed the targets in Action 1 and Action 2 and submit the following with their tender for Action 3:
- An organisation-wide Gender Equality Action Plan.
- An organisation-wide Workplace Gender Audit.
- A project-specific Gender Equality Action Plan.
When responding to tenders that have Building Equality Policy targets, tenderers must provide:
- their responses in the response schedules
- commitments in the social procurement commitment proposal.
For the purposes of data collection, anyone who identifies as a woman should be counted towards the data collected for women. If a person ‘prefers not to say’ how they identify themselves, they should be excluded from data collection.
In calculating the percentage of women in a particular role the following is to be used:
Tenderers should refer to the following information:
Action 1 – meet project specific gender equality targets
For the contract works’ total estimated labour hours, contractors must meet the following:
- Trade covered labour positions: at least 3% of each trade position must be performed by women.
For example:
If the total estimated labour hours for carpenters in a project is 10,000 hours, then at least 300 estimated labour hours must be performed by women.
- Non-trade Construction Award covered labour: at least 7 % of each non-trade Construction Award covered labour position must be performed by women.
For example:
If the total estimated labour hours for concreters in a project is 15,000 hours, then at least 1050 estimated labour hours must be performed by women.
- Management/supervisory and specialist labour (staff): at least 35% of each management/supervisory and specialist labour (staff) position must be performed by women.
For example:
If the total estimated labour hours for surveyors in a project is 7,000 hours, then at least 2,450 estimated labour hours must be performed by women.
Staff must spend 80% of their time dedicated to a specific project to count towards this target.
To respond to tenders that have project specific gender equality targets the Tenderer must complete the social procurement commitment proposal included in the Construction standard form contracts, tender.
Tenderers must outline how they will they meet or exceed targets during the term of the contract in the Construction tools and templates, Response Schedule.
Action 2 – engage women as apprentices and trainees
Contractors must engage women as apprentices and trainees for at least 4% of the contract works’ total estimated labour hours.
The 4% apprentice and trainee hours performed by women can be calculated by using the Major Project Skills Guarantee formula.
For example:
If the deemed hours for a project is calculated at 373,929 hours.
The building equality commitment is a calculation of 4% of the total estimated labour hours (4% of 373,929 hours) = 14,957 hours must be women apprentices or trainees to meet the target.
(The 10% Major Project Skills Guarantee commitment for trainees, apprentices and cadets is 37,393 hours)
The 14,957 hours calculated as the 4% apprentice and trainee hours for this policy can be counted towards the 10% Major Project Skills Guarantee commitment of 37,393 hours.
Only the hours spent working on the project can be counted towards the project’s building equality targets.
For example:
A plumbing apprentice may work across a few projects and only spend an equivalent of two days working on the building equality applicable project. Only these days can be counted towards the requirement.
Off-site training and education hours can be counted towards building equality targets.
Hours counted towards the building equality 4% target for apprentices and trainees can count towards a contractor's Major Project Skills Guarantee 10% .
Only trainees and apprentices can be counted toward the building equality 4% target – cadets are excluded.
To respond to tenders that have apprentices and trainees targets the tenderer must complete the social procurement commitment proposal included in the Construction standard form contracts, tender.
Tenderers must outline how they will they meet or exceed targets during the term of the contract in theConstruction tools and templates, response schedule.
Action 3 – require Gender Equality Action Plans
The tender response must include:
- An Organisation Wide Workplace Gender Audit.
- An Organisation Wide Gender Equality Action Plan.
- A Project Specific Gender Equality Action Plan.
Where the tenderer is solely responsible for performing the building and construction work, including responsibility for any subcontracting outlined within the scope of the tender, the tenderer is required to complete the Organisation Wide Gender Equality Action Plan and progress report (where applicable) with respect to their organisation.
Where two or more construction companies tender for work together to complete the construction works (for example in a Joint Venture), all companies are required to prepare the Gender Equality Action Plan documents.
Where a whole of life procurement model is used, only the party(ies) responsible for delivering the construction works are required to develop the Gender Equality Action Plan documents. They do not apply to non-construction partners, such as facilities management service providers or financiers.
Where there is a consortium involving suppliers of construction works and construction services, the parties responsible for delivering construction works are required to prepare the Gender Equality Action Plan documents
Subcontractors are not required to complete an Organisation Wide Gender Equality Action Plan.
Refer to Gender Equality Action Plan - guidance for tenderers.
Contract award
Buyers may negotiate and finalise the commitments made by the tenderer. The final commitments will form part of the contract.
Successful or unsuccessful tenderers may request feedback on their response. This can be a part of the debriefing process.
Contract management
The Building Equality Policy is subject to a transitional implementation period until 1 January 2024.
Within 20 business days, contractors must report on an inability to meet:
- Policy action targets.
- Gender equality action plan mandatory actions.
Contractors may be required to outline steps to improve performance.
Verification of the contractor’s performance will be undertaken at practical completion.
From 1 January 2024 penalties may apply for non-compliance as determined by the Buyer.
Reporting requirements
Contractors are required to report on all three Building Equality policy actions during the life of the project. Reporting will be captured in the Victorian Management .
Action 1 – meet project specific gender equality targets
Every 6 months and at practical completion, contractors must submit relevant data and a record of actual labour hours for each position against the baseline
Contractors must submit their total estimated labour hours for each position applicable to the project with their first progress report to establish the baseline.
Action 2 – engage women as apprentices and trainees
Every 6 months and at practical completion, contractors must submit relevant data and a record of actual labour hours for each apprentice and trainee against the baseline.
Contractors will use the hours calculated using the Major Projects Skills Guarantee as the .
Action 3 – require Gender Equality Action Plans
Contractors must report on their implementation of the mandatory actions required in the Gender Equality Action Plans.
Every 12 months and at practical completion, contractors must submit:
- A progress report against Organisation Wide Gender Equality Action Plan
- An updated Organisation Wide Workplace Gender Audit
Every 6 months and at practical completion, contractors must submit:
- Progress report against Project Specific Gender Equality Action Plan
- Complete Project Specific Workplace Gender Audit (practical completion only)
Refer to Gender Equality Action Plan - contract management and reporting guidance for suppliers.
Help and support
For more information on responding to the Building Equality Policy, contact the Industry Capability Network Victorian Social Procurement team.
Access the Building Equality Policy - defined terms for more information.
Reviewed 05 July 2023