New Requirements for Victorian Public Construction Projects from 1 January 2016 – the Major Projects Skills Guarantee.

What’s new?

It’s now mandatory for 10% of labour hours on all state-funded construction and engineering projects and PPP projects to go to Victorian apprentices, trainees and engineering cadets – this is the new ‘Skills Guarantee’ intended to stimulate employment and vocational training for Victorian apprentices, trainees and engineering cadets.

What projects are covered?
Every construction, engineering and PPP project estimated to cost over $20 million dollars must comply with the 10% rule and report on compliance. On smaller value projects, departments and agencies are required to encourage contractors to meet the same target. All procurement processes commenced after 1 January 2016 must consider this policy.

Who will this help?
Victorian trainees or engineering cadets – especially those from groups who are generally under-represented in industry vocational training such as women, and/or who face barriers to vocational training or the workforce more generally, such as indigenous or older apprentices, trainees or cadets or those with a disability.

At what stage in the tender process is the Skills Guarantee considered?
The Skills Guarantee commitment of the contractor is to be considered during expression of interest processes and in tender evaluation. Shortlisted tenderers will need to submit a Skills Guarantee Plan that is considered during evaluation.

Who is responsible?
The primary obligation to meet the 10% target and to report on compliance rests with the head contractor but they can count apprentice, trainee and cadet hours of sub-contractors as well.

When does the reporting happen?
The reporting of compliance must happen mid-way through the project and a final report is also required within two months after practical completion.

Further information
The Skills Guarantee Explanatory Guidelines are available from the Department of Economic Development, Jobs, Transport and resources. Click here to download the document. You can also read the Premier’s launch media release here, and watch the video showcasing six apprentices employed under the Skills Guarantee on the Metro Rail project.