Building Equality Policy – suppliers

Find out about the Building Equality Policy and what tenderers need to do to comply.

Policy application

In December 2023, the Building Equality Policy was updated. New requirements will apply from 1 January 2024 and 1 July 2024.

See, Building Equality Policy – updates for a summary of changes.

The Building Equality Policy was developed to create training and employment opportunities for women in the construction sector.

The policy is 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 tenders released after 1 January 2022.

Where the procurement activity involves multiple, discrete packages of work, the total value of the activity is: The combined value of all packages of work, and not the value of individual contracts.

The policy applies to projects meeting the threshold requirements regardless of procurement model. This includes 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 not subcontracted by the head contractor
  • Grants

Contractors must ensure that sub-contractors working onsite contribute to targets and policy requirements. However, sub-contractors are not required to prepare or contribute to the development of the gender equality action plans.

Responding to tenders

The policy requires suppliers to undertake the following 3 actions:

  • Action 1 – Meet project gender equality targets.
  • Action 2 – Engage women as apprentices, trainees or cadets
  • Action 3 – Implement 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 the tender documents 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 requirements, tenderers must provide:

  • their responses in the response schedules
  • Building Equality Policy commitments within the social procurement commitment proposal.

For the purposes of data collection, anyone identifying as a woman should be counted towards the data collected for women. If a person identifies as ‘prefer not to say’, this data will be still be collected but grouped into a separate category from men and women.

In calculating the percentage of women in a particular role or area as part of requirements within Gender Equality Action Plans the following is to be used:

percentage of women equals women divided by the total men and women

Tenderers should refer to the following information:

Action 1 – Meet project gender equality targets

Contractors must meet the following:

  • Trade covered labour positions: women are required to perform at least 3% of the total estimated hours of work for each position

    For example: If the total estimated hours of work for carpenters in a project is 10,000 hours, women must perform at least 300 hours.

  • Non-trade Construction Award covered labour: women are required to perform at least 7 % of the total estimated hours of work for each position.

    For example: If the total estimated hours of work for riggers in a project is 15,000 hours, women must perform at least 1050 hours.

  • Management/supervisory and specialist labour: women are required to perform at least 35% of the total estimated hours of work for each position.

    For example: If the total estimated hours of work for surveyors in a project is 7,000 hours, women must perform at least 2,450 hours.

  • Hours spent offsite that are directly related to the project delivery can be counted towards the targets.

To respond to tenders that have project specific gender equality targets the Tenderer needs to complete the social procurement commitment proposal included in the Construction standard form contracts, tender.

Tenderers to 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, trainees or cadets

Contractors are required to engage women as apprentices, trainees or cadets for at least 4% of the contract works’ total estimated hours of work.

The 4% apprentice, trainee and cadet hours performed by women can be calculated by using the Total Deemed Labour Hours as per the Local Industry Development Plan.

Hours spent offsite for training and education for apprenticeships, traineeships, and cadetships count towards the 4%.

For example:

If a project’s total estimated hours of work are calculated as 400,000 hours, then:

  • The Action 2 Building Equality target of 4% of the total estimated hours equates to 16,000 hours to be completed by women apprentices, trainees and/or cadets (4% of 400,000 hours)

The Major Project Skills Guarantee commitment of 10% of total estimated hours of work to for trainees, apprentices and cadets in this example would equal 40,000 hours. The 16,000 hours of work for the Action 2 Building Equality target can be counted towards the Major Project Skills Guarantee 40,000 hour commitment.

To respond to tenders that have apprentices, trainees or cadets targets the tenderers should complete the social procurement commitment proposal included in the Construction standard form contracts, tender.

Tenderers to outline how they will they meet or exceed targets during the term of the contract in the Construction tools and templates, response schedule.

Action 3 – Require Gender Equality Action Plans

The tender response are required to 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 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), the parties responsible for delivering construction works 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 any of the Gender Equality Action Plan documents.

Refer to Gender Equality Action Plan - guidance for tenderers.

Contract award

Buyers may negotiate and finalise the social procurement and Building Equality Policy 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

Contractors are obligated to ensure all subcontractors under the principal contract are contributing to the overall targets and requirements across the project.

The policy was subject to a transitional compliance period that was scheduled to end on 1 January 2024. This period has now been extended to 1 July 2024.

Non-compliance will be managed in a staged approach.

Guidance of the staged approach will be developed in consultation with key stakeholders. It will foster industry collaboration to achieve change.

Compliance and monitoring of the Building Equality Policy is overseen by the Department of Government Services.

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 Centre.

Action 1 – Achieve gender equality targets

Contractors must submit the following:

  • Total estimated hours of work for each occupation applicable to the project, within 30 days of the contract being awarded, to establish the targets for reporting.
  • Actual hours worked for each individual woman employee against the target:
    • Every 6 months
    • At practical completion.

Action 2 – Engage women apprentices, trainees or cadets

Total estimated hours of work for Action 2 is pre-populated by the Total Deemed Labour Hours from the Local Industry Development Plan commitment. This will establish the targets for reporting.

Contractors are required to submit the following:

  • Actual hours worked for each apprentice, trainee or cadet against the targets:
    • Every 6 months
    • At practical completion.

Action 3 – Implement Gender Equality Action Plans

Contractors are required to report on their implementation of the mandatory actions required in the Gender Equality Action Plans.

Every 12 months during the life of the project and at practical completion, contractors are required to submit:

  • A progress report against Organisation Wide Gender Equality Action Plan
  • An updated Organisation Wide Workplace Gender Audit

Every 6 months during the life of the project and at practical completion, contractors are required to submit:

  • A progress report against Project Specific Gender Equality Action Plan
  • Complete a 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, see the Industry Capability Network.

For information and support with Victorian Management Centre reporting requirements, Industry Capability Network.

Access the Building Equality Policy - defined terms for more information.

Updated