This direction applies to the procurement of construction services by a NSW Government Agency within the meaning of the Public Works and Procurement Act 1912. All values are exclusive of GST.

The NSW Government Action Plan: A ten point commitment to the construction sector mandates minimum levels of training for all major Government construction projects consistent with targets in the Infrastructure Skills Legacy Program (ISLP).

This direction applies to all new construction project procurements and will be phased in from 1 July 2023 and become mandatory from 1 September 2023.

It applies to individual contracts not programs. Agencies are encouraged to comply if contracts are valued at $10-100 million.

Targets

Construction contracts up to $10 million

There are no specific skills and training targets, but there is an expectation that agencies and contractors commit to supporting skills development on construction projects.

·       As a minimum, agencies must apply the relevant Aboriginal Procurement Policy.

Construction contracts over $10 million and up to $100 million

To establish skills development objectives, agencies must:

·       embed an apprenticeship target of 20% of the trades workforce

·       include the above target in contract requirements and tender documentation provided to potential contractors

·       include in contract requirements that contractors consider the capacity of subcontractors to contribute to skills and training targets

·       consider the capacity of a potential contractor to meet these requirements when assessing proposals and awarding a contract, including a contractor's previous performance in meeting the requirements

·       ensure contractors contractually commit to reporting on a quarterly basis on their achievement against the targets

·       report on a quarterly basis to Training Services NSW in Department of Education against agreed targets

·       apply the relevant Aboriginal Procurement Policy.

The following two additional requirements will apply to all new construction project procurements over $10 million commenced from 1 July 2023:

·       report on the number of women in trade roles

·       report on the number of women in non-traditional roles (refer to Training Management Guidelines)

For contracts between $10 million and $100 million, the agency may also consider adopting the additional ISLP targets that apply to contracts over $100 million.

Construction contracts over $100 million

All requirements for construction contracts over $10 million also apply to construction contracts over $100 million (including additional reporting requirements for women in trades and women in non-traditional roles).

In addition, ISLP administered by Training Services NSW (TSNSW) sets training and employment targets, and reporting requirements, for major construction projects. All agencies must comply with the minimum requirements of the ISLP.

The minimum ISLP targets are:

·       20% of the total project workforce to be made up of ‘learning workers’ (defined as trainees and workers who need to update their qualifications to meet the needs of the infrastructure project)

·       20% of all trades workforce on a project to be made up of apprentices

·       apply the relevant Aboriginal Procurement Policy

·       doubling the number of women in trade-related work (up from the NSW average of 1% to 2%)

·       ensuring at least 8% of the total project workforce is aged less than 25 years

·       reporting the employment and training outcomes for people from the local region (local region to be defined in the contract).

Context

Infrastructure is a key priority for the NSW Government. It committed $97 billion to government infrastructure in the 2019/20 budget.

The investment in infrastructure creates jobs and stimulates the economy. The ISLP provides an opportunity to create an on-going legacy for the people of NSW for employment, skills development and diversity in the construction workforce. The ISLP also contributes to improving productivity by building capability and capacity of the construction workforce.

The NSW Government has worked closely with industry and government agencies to establish the ISLP targets for major infrastructure projects. The targets will allow existing workers to learn new skills and increase the number of apprentices, young people, Aboriginal and Torres Strait Islander people and women in construction.

The ISLP targets are a commitment under the NSW Government Action Plan: A ten point commitment to the construction sector.

Training Services NSW (TSNSW), Department of Education, is the lead agency to support industry and government agencies to achieve the goals of the ISLP.

For further information on the ISLP targets, contact Training Services NSW at [email protected]or visit Training Services NSW website for information relating to ISLP, including the Training Management Guidelines.