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.

Social procurement objectives 

1.Opportunities for Victorian Aboriginal people

2.Opportunities for Victorians with disability

3.Women’s equality and safety

4.Opportunities for disadvantaged Victorians

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

Building Equality Policy

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 aligning 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.  

The Building Equality Policy is subject to a transitional implementation period until 1 January 2024. From 1 January 2024 penalties may apply for non-compliance as determined by the Buyer.  

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 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.  
• Provide commitments in the Social Procurement Commitment Proposal.  

 Targets:  

• Trade covered labour positions: at least 3 % of each trade position 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.  
• Management/supervisory and specialist labour (staff): at least 35 % of each management/supervisory and specialist labour (staff) position must be performed by women.  

• 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.  

 Reporting requirements  

Reporting will be captured in the Victorian Management Centre. 

Phase 2 of the reporting solution has now been released, with the development of further phases underway.