Glossary

Industry Definitions

The following are brief definitions of the more notable social procurement and environmental sustainability terms.

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Female Participation
Contribution in labour hours to a Project by females in trade, non-trade, and on-site managerial/supervisory and specialist roles under the Building Equality Policy (BEP) implemented by the Social Procurement Framework (SPF).
Aboriginal-owned business
An organisation, operating a business, that is 51% or more Indigenous-owned. It may take the form of a charity, incorporated association or trust. A social enterprise or registered charity may also be an Aboriginal-owned business if it is operating a business.
Indigenous Participation
The Commonwealth has two targets for purchasing from Indigenous Enterprises:
  • Wholly delivered in Australia; and
  • Valued at $7.5 million (GST inclusive) or more; and
  • Where more than half of the value of the contract is being spent in one or more of nineteen specified industry sectors.
The MMR requires suppliers to achieve a minimum percentage of Indigenous employment or supplier use (or a combination of both) on average over the term of the contract. The supplier, in consultation with the relevant purchasing Commonwealth entity, can elect to apply a target of 4 per cent Indigenous employment or supplier use at the contract level, or a target of 3 per cent at the organisational level. The supplier may elect to meet the MMR directly or through subcontracts.
Mandatory Minimum Indigenous Participation Requirements
From 1 July 2020, relevant Commonwealth entities are required to include Mandatory Minimum Indigenous Participation Requirements (MMR) in the Approach to Market documentation for all procurement.
  • Volume target - the equivalent of 3% of the number of eligible eligible procurements are awarded to Indigenous enterprises each financial year.
  • Value target - the value of eligible procurements are awarded to Indigenous enterprises each financial year. From 1 July 2019, a series of progressively increasing value targets apply, up to a maximum value in 2027-2028, as per the below:
    • 2019-20 1%
    • 2020-21 1.25%
    • 2021-22 1.5%
    • 2022-23 1.75%
    • 2023-24 2%
    • 2024-25 2.25%
    • 2025-26 2.5%
    • 2026-27 2.75%
    • 2027-28 3%
Local Content
Proportion of content purchased for the Project that is produced by Victorian, Australian or New Zealand goods or services. The term local content covers all suppliers producing Australian or New Zealand (ANZ) goods or services or when they have added value to imported items. Local content means goods that are produced by local industry, or services that are supplied by local industry or construction activities carried out by local industry.
Local Jobs
Proportion of workers on a project residing within 50km of the Project address. The Local Jobs First - Victorian Industry Participation Policy (VIPP) is an industry development policy that helps ensure competitive local businesses are provided with opportunities to supply into Victorian government projects. The Local Jobs First - VIPP must be applied by all Victorian government departments and agencies for any type of project with a value of: Proportion of workers on a project residing within 50km of the Project address. The Local Jobs First - Victorian Industry Participation Policy (VIPP) is an industry development policy that helps ensure competitive local businesses are provided with opportunities to supply into Victorian government projects. The Local Jobs First - VIPP must be applied by all Victorian government departments and agencies for any type of project with a value of: $1 million or more in regional Victoria, or $3 million or more in metropolitan Melbourne or for state-wide activities. Minimum local content requirements are set for government projects worth $50 million or more or for other projects as agreed. Local Jobs First – VIPP helps ensure that local businesses are given full and fair opportunity to compete for Victorian government contracts.
MPSG Hours
Proportionate contribution of local apprentices, trainees and cadets to overall labour hours on a Project. The Major Projects Skills Guarantee (MPSG) provides opportunities for apprentices, trainees and cadets to work on Victoria’s largest construction projects. This helps to ensure Victorians starting their career in the construction industry have more opportunities to receive on-the-job training.
Social/Disability Enterprise Spend
Value of goods, services and construction carried out by certified Social Enterprises or Australian Disability Enterprises under the Social Procurement Framework (SPF). Such expenditure is incurred to enterprises registered with BuyAbility’s online directory, or certified by Social Traders. Integration of Social/Disability Enterprises into supply chains can achieve social and sustainable outcomes by contributing to training; employment and support for Victorians with disadvantage or disability, training and employment of long-term unemployed people, disengaged youth, single parents, migrants, refugees or workers in transition; use of environmentally sustainable materials and business practices; and sustainable regional economies and communities.
Opportunities for Disadvantaged Victorians
Contribution in labour hours to a Project by cohorts of disadvantaged Victorians under the Social Procurement Framework (SPF), namely:
  • Long-term unemployed people – people who have not been employed for 12 months or more excluding people undertaking studies
  • Disengaged youth – people aged 15 to 24 years not studying and seeking full-time work
  • Single parents – sole parents that are responsible for dependent or non-dependent children of any age (either living in the household or outside the household) and not sustainably employed for a period of 12 months or more
  • Migrants – people who leave their country voluntarily to commence living in Australia and not in sustainable employment for period of 12 months or more
  • Refugees – people subject to persecution in their home country and who now reside outside their home country and have resettled in Victoria, Australia and not sustainably employed for a period of 12 months or more
  • Workers in transition – jobseekers who are recently retrenched or facing pending retrenchment due to business closure or industry transition, who require further training or on-the-job support to transition to new employment
Social enterprises play an important role in providing transitional employment for disadvantaged job seekers as a pathway to employment in mainstream businesses. Social enterprises can also provide ongoing employment options for disadvantaged job seekers who may not be well placed to sustain mainstream employment over the longer term.
Waste Diverted From Landfill
Percentage of total demolition and construction waste that is disposed of by alternative means to landfill, including through re-use, local remanufacturing or recycling.
Reduce Concrete Embodied Carbon Emissions
Measure of embodied carbon eliminated from construction through optimising design and substituting materials, including using less materials in the actual building, such as reducing slab thickness, and replacing concrete and steel with cross-laminated timber.
Minimise Water Consumption
Volume of potable water and waste water generated through construction activities.
Procure Green Steel
Percentage of steel used in construction that is recognised as “Green Steel”, that being, has been produced by stripping oxygen from iron ore to produce pure iron metal using hydrogen made from renewable energy rather than coal or natural gas.
Green Star Rating
Green Star is a certification trademark registered by Green Building Council of Australia (GBCA). There are four Green Star rating tools, these provide a means of certification for building design and construction, communities, operational performance, and interior fitout.
ISO Certification
Formal recognition of compliance with the standards outlined by the International Organisation for Standardisation, which may address making a product, managing a process, delivering a service or supplying materials.
Family/Domestic Violence Leave Policy
An entity’s business-wide policy for entitlements offered to employees who are experiencing family and domestic violence to deal with the impacts of this violence where it is not practical to do so outside their work hours. This might include making arrangements for their own or a family member’s safety (including relocation), attending court or accessing police services, or attending counselling, or appointments with medical, financial or legal professionals. Family and domestic violence refers to violent, threatening or other abusive behaviour that seeks to coerce or control the employee and causes them harm or fear
Environmental Sustainability Policy
An entity’s business-wide policy being a commitment to stakeholders around complying with legal obligations, minimising pollution, and applying a systematic environmental management approach that is consistent with the international standard ISO 14001. A robust policy will address the following environmental management issues:
  • Energy use
  • Greenhouse gas emissions and ozone depleting substances
  • Suppliers, produces and materials use
  • Office waste, building waste, and resource recovery
  • Potable water use and waste water
Entity Level Gender Equality Action Plan
An entity’s business-wide policy to plan, implement and measure change in order to achieve gender equality in the workplace. The policy must include results of a workplace gender audit to assess the current state of gender equality in the workplace, and strategies and measures to improve gender equality in the workplace, based on the results of the audit.
Project Level Gender Equality Action Plan
A document outlining strategies to to support gender equality at the project level by:
  • Understanding the importance of gender equality
  • Identifying where change is needed
  • Planning and implementing actions to achieve progress
  • Measuring change over time.
Different strategies apply at the project level compared to the organisational level, i.e. the gender pay gap of an organisation and a project will differ and will require different targets to eliminate or close the gap.
Fair Jobs Code
A Code introduced by the Victorian Government designed to promote labour standards and encourage compliance with employment, industrial relations and workplace health and safety obligations.

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