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 the Women’s equality and safety objective to 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.
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 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
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 (Action 3).
Responding to tenders
The policy requires suppliers to undertake the following three 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. For Action 3, tenderers must submit and complete the following documents (using the prescribed templates) as part of the tender process:
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.
Meeting Project Gender Equality Targets
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 still be collected but grouped into a separate category from men and women.
To calculate the percentage of women in a particular role or area as part of requirements within Gender Equality Action Plans, the following formula must be used:
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 construction riggers in a project is 15,000 hours, women must perform at least 1,050 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 count towards the targets for both Action 1 and Action 2.
To respond to tenders that have project specific gender equality targets, the tenderer must complete the social procurement commitment proposal included in the Request for Tender Conditions.
Tenderers outline how they will they meet targets during the term of the contract in the Request for Tender Conditions at Social Procurement Response Table 4B.
Action 2 – Engage women as apprentices, trainees or cadets
Contractors must meet the following:
Apprentices, trainees, and cadets: women are required to perform at least 4% of the total estimated hours of work on the project.
The 4% apprentice, trainee and cadet hours performed by women is calculated by using the total project labour hours in the Local Industry Development Plan.
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, 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 apprentice, trainee, or cadet targets.
Tenderers outline how they will they meet targets during the term of the contract in the Construction tools and templates, response schedule.
Action 3 – Require Gender Equality Action Plans
Contractors must prepare and submit the following:
Gender Equality Action Plans provide a shared understanding of what actions need to occur to create gender equitable workplaces.
Subcontractors are not required to complete any of the Gender Equality Action Plan documents.
Refer to Gender Equality Action Plan: Suppliers for further guidance.
Contract award
The Building Equality Policy commitments 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 can be a part of the debriefing process.
Contract management
Contractors must ensure all subcontractors under the principal contract are contributing to the overall targets across the project.
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.
The Staged Approach to non-compliance guidance provides advice to contract managers and contractors experiencing or anticipating difficulties meeting the Building Equality Policy.
Contractors are required to work with contract managers to mutually agree on Alternative Appropriate Obligations to achieve suitable levels of compliance with the policy.
The guidance applies to:
- contractors experiencing difficulties meeting the Building Equality Policy mandatory obligations.
- contracts that are executed on or after 1 July 2024.
See, Building Equality Policy: Staged Approach to Non-Compliance to view the complete guidance.
Reporting requirements
Once the contract has been executed, Contractors are required to report on all three Building Equality Policy actions during the life of the project.
Action 1 – Achieve gender equality targets
Contractors must submit:
- 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; and
- 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 are pre-populated based on total project labour hours from the Local Industry Development Plan commitment. This will establish the targets for reporting.
Contractors are required to submit 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 Gender Equality Action Plans.
- Every 12 months during the life of the project and at practical completion:
- Provide data and progress updates for each indicator to complete the Organisation Wide Gender Equality Action Plan
- Every 6 months during the life of the project and at practical completion:
- Provide data and progress updates for each indicator to complete the Project Specific Gender Equality Action Plan
The Workplace Gender Equality Indicators represent the key areas where gender inequality persists and where Contractors need to demonstrate progress towards gender equality.
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 more information on responding to the Building Equality Policy, see the Industry Capability Network.
Access the Building Equality Policy: Staged Approach to Non-Compliance for more information.
Access the Building Equality Policy - defined terms for more information.
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