The construction sector currently has one of the highest levels of gender separation in Australia with research revealing that gender separation accounts for up to 17 per cent of the gender pay gap in the country. Industry separation contributes to the gender pay gap as well as workplace culture.

Some male dominated industries have higher rates of pay than female dominated industries, and industries that have lower proportions of female employees can be less welcoming for women. Acting to lower industry separation can help reduce the gender pay gap, improve workplace cultures, and help address workforce shortages to ensure the ACT economy continues to grow.

The ACT Government is committed to working collaboratively with industry stakeholders by removing barriers, and enabling women and girls to reach their potential, contribute to innovation, and to be leaders in their individual fields and professions.

The ACT Government is working with industry on the proposed Women in Construction Procurement Policy (Policy), that will help in bridging the gender pay gap and making construction sites more inclusive workplaces, for everyone.

There are broader benefits that accompany an increased ratio of women in the construction sector including addressing skills shortages, increasing productivity, and better mental health outcomes.

Through the Policy, the ACT Government aims to have a positive impact on the construction industry while meeting the infrastructure needs of the community. The proposed measures would also give suppliers the opportunity to trial more gender inclusive workplace practices while working on government projects.

The ACT Government plans to introduce two main requirements through the policy:

• gender based employment targets
• submission of an organisation's gender equality measures.

The policy is proposed to only apply for ACT Government construction procurements with an estimated value of $5million or more.

The Policy requirements will only apply to ACT Government construction contracts with an estimated value of $5million or more. The requirements are aimed at influencing workforce practices of relatively larger suppliers in the industry.

Proposed gender-based employment targets for apprentices and trainees will only impact contracts with an estimated contract term of 3 or more years, allowing for the possibility of completing apprenticeships on an ACT Government contract.

The ACT Government is seeking stakeholder input and feedback on key elements of the Policy to balance the cost of compliance with the outcomes.

Stakeholder feedback about how the proposed measures will impact the day-to-day operations of suppliers, including information on where businesses currently stand in terms of workforce participation of women, is welcome.

The Policy will help government buyers undertaking construction procurements at $5 million or more to comply with the Procurement Values Direction 2020, by upholding the Diversity, Equality and Inclusion Procurement Value.

The Policy will be consistent with, and expand on, existing obligations under the Secure Local Jobs Code. This includes the requirement to provide secure employment, evidence of business strategies and processes to support employment of diverse groups, including women, and address barriers to employment or career development for people from these groups in their Labour Relations, Training and Workplace Equity (LRTWE) Plans.

No, the Policy will not apply retrospectively.

The finalised Policy is expected to come into effect from 1 July 2024 and will apply to any eligible procurements where the approach to market documents are released from that day onwards.

Proposed policy measures will not apply to any existing contracts, unless there are significant changes to the scope of the project that would require a fresh approach to market.

The Policy is being developed in collaboration with Procurement ACT, Office for Women, and Major Projects Canberra. The ACT Government is seeking stakeholder feedback from the construction industry and suppliers who tender for construction work with ACT Government.