From 1 July 2024, non-compliance will be managed using a staged approach. The staged approach to non-compliance will apply to contracts executed on or after 1 July 2024. See, Building Equality Policy: Staged approach to non-compliance.
Policy application
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, by applying Women's equality and safety objective to applicable projects.
Agencies that must comply with the policy
See, construction mandated agencies for the list of Agencies that must comply.
Applicable projects
The policy applies to all publicly funded construction projects:
- valued at $20 million or more (excluding GST)
- with a Request for Tender released on or after 1 January 2022
The policy applies to construction projects that meet those criteria 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
The policy applies to construction projects (incorporating early works and construction phases). This includes:
- Individual projects
- Public private partnerships
- Alliance contracts
- Market-led proposals
- Joint ventures
Values and thresholds in the policy
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.
This means that the policy applies to individual contracts valued less than $20 million (excluding GST) if they form part of a project valued at $20 million or more (excluding GST).
Agencies should consider applying the policy if the estimated project value is close to $20 million (excluding GST). Contingency spending may increase the value of the project over $20 million.
Procurement planning
For each individual procurement activity valued at or above $20 million (exclusive of GST), buyers must complete a social procurement plan.
Construction projects with a total project value of $20 million (exclusive of GST) must include:
- Building Equality Policy requirements, including:
- Action 1: Meet project specific gender equality targets
- Action 2: Engage women as apprentices, trainees and cadets
- Action 3: Implement gender equality action plans
- Social Procurement Framework requirements
- Other applicable procurement-related policies
See, Social procurement plan template.
Invite offers
Buyers notify potential tenderers of policy requirements and include policy requirements in invitation documents.
Expression of Interest
Where relevant, buyers should inform potential tenderers at this stage that the Building Equality Policy will apply to their tender submission.
During the tender process
Social procurement and Building Equality Policy clauses are embedded in construction templates:
The Request for Tender condition terms cover Building Equality Policy related:
- Definitions
- Conditions of tender
- Draft contract and response schedules
Buyers should include an overview of applicable procurement-related policies in tenderer briefings.
The Building Equality Policy response schedule can be found in the Social Procurement Response Table 4B – Women’s equality and safety.
The staged approach to non-compliance cannot be negotiated at the tender stage of the procurement process.
Tender weighting
The minimum recommended weighting for the Building Equality Policy is 5%. The three policy actions carry equal weight in the tender evaluation. This equates to 1/3 weighting for each policy action.
The recommended minimum 5 to 10% weighting for other Social Procurement Framework objectives is separate.
Tender evaluation
Evaluation of the Building Equality Policy is broken down into three actions.
Action 1: Meet project gender equality targets
Buyers score tenderers’ responses in the Social Procurement Response Table 4B.
Scoring of commitments assesses a tenderer’s ability to meet the Action 1 project gender equality targets for each position. This includes how the tenderer:
- will meet the minimum targets
- identify and recruit women to meet the commitments
- work with subcontractors to contribute to the targets
Action 2: Engage women as apprentices, trainees or cadets
Buyers score tenderers’ responses in the Social Procurement Response Table 4B.
Scoring of commitments assesses a tenderer’s ability to meet the Action 2 targets for apprentices, trainees, and cadets. This includes how the tenderer:
- will meet or exceed the minimum targets
- engage with tertiary education/TAFE sector
- work with subcontractors to contribute to the targets
Action 3: Require Gender Equality Action Plans
To meet Action 3, buyers must ensure that tenderers submit the following documents (using the prescribed templates) as part of the tender process:
Scoring for the respective Gender Equality Action Plans is based on whether the documents are submitted and complete.
Complete means:
- data under each gender equality indicator has been provided (for the Organisation Wide Gender Equality Action Plan)
- a minimum of one strategy has been provided to address gender inequality for each indicator (for both the Project Specific and Organisation Wide Gender Equality Action Plans).
Incomplete means:
- one or more of the gender equality indicators have been left blank (Organisation Wide Gender Equality Action Plan); or
- one or more of the indicators does not have a strategy to address gender inequality (for either of the Project Specific and Organisation Wide Gender Equality Action Plans).
Finalise the contract
The Social Procurement Commitment Response Table 4B will form part of the contract. Alternative Appropriate Obligations cannot be negotiated at this stage.
Successful or unsuccessful tenderers may request feedback on their response. This should form part of the supplier debrief process.
For more information, see Debrief participants.
Manage the contract
Buyers are responsible for implementing the policy once a contract has been executed.
Once a project starts, contract managers must ensure that contractors meet and report on the policy commitments.
Staged approach to compliance
The staged approach to non-compliance guidance provides advice to contract managers and contractors experiencing or anticipating difficulties complying with the Building Equality Policy during project delivery.
Contract managers are required to work with contractors to mutually agree on alternative appropriate obligations to achieve suitable levels of compliance with the policy.
The staged approach to non-compliance applies to:
- contracts that are executed on or after 1 July 2024
- contractors experiencing difficulties meeting the Building Equality Policy mandatory obligations.
Further guidance on this process is available at Building Equality Policy: Staged approach to non-compliance.
Reporting requirements
Once the contract has been executed, the contract manager needs to set up reporting requirements.
Action 1: Achieve gender equality targets
Buyers must:
- submit the total estimated hours of work for each occupation applicable to the project, within 30 days of contract award, to establish the targets for reporting.
- ensure that Contractors submit the actual hours worked for each individual woman employee against the target:
- every 6 months
- at practical completion
Progress against targets will be calculated based on the actual hours worked by women and the total estimated hours of work for each occupation (position).
In calculating total hours for each occupation (position), the following formula must be used:
Hours spent offsite that are directly related to the project delivery can be counted towards the management, supervisory and specialist target.
Action 2: Engage women apprentices, trainees or cadets
Buyers must:
- pre-populate the total estimated hours of work for Action 2 by using the total project labour hours from the Local Industry Development Plan commitment. This will establish the targets for reporting.
- ensure that Contractors submit actual hours worked for each individual woman apprentice, trainee, or cadet against the targets.
The Action 2 target aims for women apprentices, trainees, and cadets to complete 4% of the total estimated hours for a project.
For example:
- If a project’s total estimated hours of work are calculated as 400,000 hours, then the 4% target would equate to 16,000 hours.
- If the project is using the Deemed Labour Hours, then the calculation equates to 40% of the Major Projects Skills Guarantee. That is, if the Major Projects Skills Guarantee is 40,000 hours (i.e. 10% of 400,000 hours), then the Action 2 target is 16,000 hours.
Hours spent offsite for training and education that are part of the training contract count towards the Action 2 target.
Action 3: Require Gender Equality Actions Plans
Contractors must submit the following reports:
- Every 12 months during the life of the project and at practical completion:
- Progress on the Organisation Wide Gender Equality Action Plan
- Every 6 months during the life of the project and at practical completion:
- Progress against Project Specific Gender Equality Action Plan
Monitoring and reporting of Alternative Appropriate Obligations
When the contract manager and contractor have agreed Alternative Appropriate Obligations, monitoring and reporting must be in the format and at the frequency required in the relevant contract(s).
Agreement of Alternative Appropriate Obligations will not change reporting requirements unless there has been a variation to the original contract.
Help and support
For Building Equality Policy information and support, contact Industrial Relations Victoria, Department of Treasury and Finance.
Access the Staged approach to non-compliance guidance for further information on managing non-compliance.
To understand the procurement process, see Buyers guide.
Access the Building Equality Policy - Define terms for further information.
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