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Skills Tasmania

Building and construction training policy

The Policy is designed to help maintain and support skills in the building and construction industry, and to contribute to the performance of the Tasmanian economy.

The Policy requires that contractors are required to use apprentices for a minimum of 20% of the labour required for work undertaken on government-funded building and construction contracts.

A new version of the Policy will take effect as of 1 January 2021 for all new requests for tenders advertised for major work procurement on relevant projects from that date.

1What are the key changes to the updated Policy?

The following changes to the Policy take effect from 1 January 2021:

  • terminology and structure has been improved;
  • the wage rate factor has been increased to $35 per hour;
  • the roles and responsibilities of parties have been clarified;
  • the inclusion of a variation clause and supporting information to clarify when a variation may be valid;
  • the compliance and reporting mechanisms have been clarified; and,
  • the inclusion of a glossary of key terms.

An updated compliance plan has been integrated with a variation form template to provide efficiencies to the process. The updated Policy and the new compliance plan are available under the Policy Guide and Templates.

2Is my contract in scope?

The Policy applies to government-funded building and construction works, including maintenance works, equal to or in excess of $250,000 in value.

The Policy does not apply to civil works.

3How will the deemed training hours for my contract be calculated?

To establish the deemed hours for training in building and construction projects, the following formula is used:

a. Calculate the total labour dollar value of the contract, using the material:labour ratio of 70:30.
b. Calculate labour hours by dividing the total labour dollar value (a) by a notional $25 per hour conversion factor.
c. Calculate the deemed hours for a contract by multiplying labour hours (b) by 20%.

4What are the contract costs that can be deducted?

The value of the following may be deducted from the total contract value:

  • civil works (i.e. earth, water and transport infrastructure),
  • legal fees,
  • architect’s fees,
  • administration costs, and
  • sub-contracts for works valued less than $20,000.

5My contract has special circumstances that affect the training hours. What do I need to do?

Applications for variations will be assessed on a case by case basis, and must not contradict the purpose of the Policy.

Applications will only be approved where evidence can be presented that the circumstances of the project or works do not enable the contractor to meet the required number of training hours calculated under the conversion formula. For example, where there are significant differences in the labour costs and/or material costs for the project from the standard formula, or difficulties in obtaining appropriate labour.

All applications for variations should be made in writing to: Skills.Registration@skills.tas.gov.au.

Contact (03) 61656020 for enquiries.

6What are my obligations under the Policy?

I am a Contacting Agency

As the contracting agency, you are responsible for compliance with the Policy and ensuring that your contractors submit compliance plans and reports.

You will need to ensure that appropriate clauses relating to the Policy are included in tender and contract documentation, and collect a declaration from the successful tenderer.

You will also need to request compliance documents from the contractor at the time of:

  • Contract acceptance: a compliance plan outlining the manner in which compliance with the Policy is to be achieved. This will be verified by Skills Tasmania and used as the basis to monitor performance for the contract, and
  • Practical completion: a final compliance report listing the apprentices and trainees employed on the specific contract project and a statutory declaration that the contents of the final compliance report are true and correct.
  • You will also determine the interval/s of interim reports (for example at 50% completion of works or at 50% of project value or at a mutually agreed time).

Where applicable, you will attempt to negotiate a remedy for a breach to the Policy with a contractor.

I am a Contractor

As the contractor, you are responsible for submitting the compliance plan and reports to the contracting agency, and liaising with subcontractors regarding the arrangements required to meet the deemed training hours.

You will need to submit a declaration of your intention to comply with the Policy as the successful tenderer. Contractors are to ensure that any contract that they have with sub-Contractors requires that sub-Contractors comply with the Government Building and Construction Training Policy.

You will also need to submit compliance documents to the contracting agency upon request and at the time of:

  • Contract acceptance: a compliance plan outlining the manner in which compliance with the Policy is to be achieved. This will be verified by Skills Tasmania and used as the basis to monitor performance for the contract, and
  • Contract acceptance: prepare a variation application and evidence if you or your subcontractors are unable to meet the training hours, and submit this with the compliance plan.
  • Practical completion: a final compliance report listing the apprentices and trainees employed on the specific contract project and a statutory declaration that the contents of the final compliance report are true and correct.
  • At an interval/s determined by the contracting agency: an interim report/s (for example at 50% completion of works or at 50% of project value or at a mutually agreed time).

All compliance / reporting forms are found here

Enquiries: Skills.Registration@skills.tas.gov.au

Building and construction training policy