What You Need to Know About the Building Equality Policy and Government Procurement

In 2022, the Victorian Government introduced the Building Equality Policy (BEP), a landmark government procurement policy designed to increase female participation in construction and deliver more inclusive outcomes across major infrastructure projects.

The BEP demonstrates how social procurement policy can be leveraged to address entrenched workforce inequities while delivering broader economic and social value through public investment.

What is the Building Equality Policy?

The Victorian Government’s Building Equality Policy is a procurement-led initiative that applies to publicly funded construction projects valued at $20 million or more. Introduced in January 2022, the policy embeds gender equality requirements directly into procurement and contract delivery.

Under the BEP, contractors are required to take specific actions to address structural and cultural barriers faced by women in the construction industry, including:

• Meeting project-specific gender equality targets

• Engaging women as apprentices, trainees and cadets

• Developing and implementing an Organisation-wide Gender Equality Action Plan (GEAP).

By integrating these requirements into government procurement processes, the BEP shifts gender equality from aspiration to obligation.

Why is the Building Equality Policy important?

Women currently represent just 2 to 3 percent of the construction workforce in Australia. This underrepresentation highlights the need for systemic intervention.

The BEP seeks to disrupt long-standing industry norms by embedding gender equality into procurement decision-making and contract management. In doing so, it supports safer, more inclusive workplaces and strengthens workforce sustainability.

The policy aligns with the Victorian Government’s broader commitments under the Gender Equality Act 2020 and the Victorian Social Procurement Framework, reinforcing the role of procurement as a lever for social and sustainable outcomes.

It also aligns with national and global frameworks, including the Workplace Gender Equality Act 2021 and the UN Sustainable Development Goals, particularly SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth).

Together, these frameworks support measurable, long-term change across the built environment.

When does the Building Equality Policy apply?

The Building Equality Policy (BEP) applies to Victorian Government construction projects valued at $20 million or more across the state.

It applies to all departments and public bodies under the Financial Management Act 1994, as well as the contractors, subcontractors and suppliers engaged to deliver these projects.

This includes major infrastructure and capital works programs where government procurement is used as a lever to deliver female participation in construction, workforce diversity and broader social procurement policy outcomes.

Through this application, the BEP ensures gender equality requirements are embedded from early procurement planning through to contract delivery and reporting, reinforcing accountability across the full supply chain.

How is the BEP applied through social procurement?

The BEP is implemented through the Victorian Social Procurement Framework and embedded into buyer guidance, tender documentation and contract clauses.

Contractors must demonstrate compliance with minimum onsite gender equality targets, calculated as a proportion of the contract’s total estimated labour hours:

Trade covered labour

• Women must perform at least 3 percent of total estimated labour hours for each trade position

Non-trade Construction Award covered labour

• Women must perform at least 7 percent of total estimated labour hours for each non-trade Construction Award covered labour position

Management, supervisory and specialist labour (staff)

• Women must perform at least 35 percent of total estimated labour hours for each staff position

In addition, suppliers are required to support workforce pathways by engaging women who are registered apprentices or trainees:

• Women apprentices and trainees must perform at least 4 percent of the contract’s total estimated labour hours for apprenticeship and trainee roles

These targets apply across the project lifecycle and extend through subcontracting arrangements, reinforcing accountability across the supply chain.

While meeting targets is critical, creating environments where women can thrive is equally important. This is where Gender Equality Action Plans (GEAPs) play a central role.

How is the BEP measured?

Performance under the BEP is measured through contractual compliance and reporting. Contractors are required to provide evidence against key indicators, including:

• Number of women engaged as apprentices, trainees and cadets

• Progress against project-specific gender targets

• Quality and effectiveness of GEAP implementation

• Subcontractor contribution to overall outcomes.

Oversight is provided by the Building Industry Consultative Council (BICC), with monitoring and enforcement led by relevant departments.

Conclusion

The Building Equality Policy represents a significant shift in how government procurement can be used to deliver inclusive, long-term outcomes. By embedding gender equality into infrastructure delivery, the BEP moves beyond workforce targets to drive cultural change and lasting social impact.

As reporting becomes more structured and outcomes more visible, the policy is reshaping expectations across the construction industry and setting a benchmark for how social and sustainable procurement can deliver legacy outcomes.

How Sedo Group can help

At Sedo Group, we support our clients to operationalise the Building Equality Policy through strategic and social procurement expertise. We work with government agencies, construction firms and suppliers to move beyond baseline compliance and deliver genuine gender-equitable outcomes.

We can support you by:

• Integrating BEP requirements into procurement strategies, frameworks and tender evaluation criteria

• Aligning procurement approaches with the Victorian Social Procurement Framework

• Identifying and engaging diverse suppliers, workforce pathways and women-led businesses

• Supporting bid teams to articulate gender equality commitments with clarity and credibility

• Developing and implementing effective Gender Equality Action Plans (GEAPs) with measurable outcomes

• Capturing, reporting and showcasing gender equality achievements across the project lifecycle

Whether you are preparing for a major infrastructure bid or strengthening your approach to female participation in construction, Sedo Group can help you deliver policy-aligned impact through procurement.

Get in touch with our team to learn how we can support your next project.