Social Procurement
In 2018 the Victorian Government determined that it had an opportunity to use its buying power to enter into procurement contracts that could make a real difference to all Victorians.
As a result, the Social Procurement Framework (SPF) was released, encouraging organisations to use their buying power to generate social and/or sustainable value above and beyond the value of the goods, services or construction being procured.
Building Equality Policy
Staged approach to non-compliance
From 1 July 2024, non-compliance with Building Equality Policy (BEP) applicable contracts will be managed using a staged approach:
- Compliance arrangements will be identified in tender documentation and form part of the contract between the Victorian Government and the preferred Contractor.
- Contractors experiencing or anticipating difficulties meeting BEP contractual obligations must notify the contract manager in writing as soon as practicable.
- Contract managers will work with Contractors facing challenges to mutually agree on alternative appropriate obligations.
- The contract manager must confirm agreed alternative actions in writing to the Contractor, outlining evidentiary and reporting requirements.
For further information, please visit Buying for Victoria or contact ICN Victoria.
Important updates on the Building Equality Policy.
From 1 July 2024, several updates to the policy including:
- The transitional period ended on 30 June 2024.
- Non-compliance will be managed using a staged approach (not applied retrospectively).
- New Gender Equality Action Plan (GEAP) templates have been released, focusing on streamlining policy requirements for suppliers.
Further information is available on the Buying for Victoria website, or through our webinars and fact sheets below.
The policy applies to all Victorian Government funded construction projects that meet the following requirements:
- Valued at $20 million or more (excluding GST).
- Request for Tenders released after 1 January 2022.
Social procurement objectives
1. Opportunities for Victorian Aboriginal people
2. Opportunities for Victorians with disability
3. Women’s equality and safety
4. Opportunities for priority jobseekers
5. Supporting safe and fair workplaces
6. Sustainable Victorian social enterprise and Aboriginal business sectors
7. Sustainable Victorian regions
Sustainable procurement objectives
8. Environmentally sustainable outputs
9. Environmentally sustainable business practices
10. Implementation of the Climate Change Policy Objectives
Responding to tenders
The policy requires suppliers to undertake the following:
- Action 1: Meet project specific gender equality targets.
- Action 2: Engage women as apprentices, trainees and cadets.
- Action 3: Implement gender equality action plans (GEAPs).
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.
- 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.
- Provide commitments in the Social Procurement Commitment Proposal.
Targets:
- Trade covered labour: women are required to perform at least 3% of the total estimated hours of work for each trade position.
- Non-trade Construction Award covered labour: women are required to perform at least 7 % of the total estimated hours of work for each non-trade Construction Award covered labour position.
- Management/supervisory and specialist labour (staff): women are required to perform at least 35 % of the total estimated hours of work for each management/supervisory and specialist labour (staff) position.
- Contractors must engage women as apprentices and trainees for at least 4% of the contract works’ total estimated labour hours.
An occupation list for each category is located on the Buying for Victoria website.
ICN Victoria Social
Procurement Program
The ICN Social Procurement Program supports SPF to deliver Victorian employment and economic outcomes. The program supports Agencies and industry working on projects and procurement with the requirement for local, social and sustainable outcomes by increasing awareness and education, maximising Victorian supply chain engagement and Victorian jobs as well as providing local, social and sustainable data insights through our flagship system, VMC.
Social Procurement in Action
Industry Advisers
Building Equality Policy Industry Adviser
Lauren Trollope
What drew me to the role is further supporting women in construction and fostering those connections to further benefit the community. I have come from a retail construction background, where I got to see first hand the struggle women in the industry face. As someone with lived experience, I find this drives my passion to advocate for this policy. This combined with my drive to provide key impact to the social sector will be essential in upholding our values. I am thrilled for this next adventure for growth within the industry to further facilitate crucial connections.
Social Procurement Framework and Local Jobs First Reporting
Reporting requirements
Reporting will be captured in the Victorian Management Centre.
The Victorian Government worked with the ICN Victoria to develop a joint reporting platform that is used for the LJF and SPF policies, including BEP.