Government Building Training (GBT) Policy

Presented by: Dr Ross Kelly, Director Policy Planning and Research

Karen Purdy, Manager VET System Policy

Department of Training and Workforce Development

2

Session outline• Overview of GBT Policy (including definitions)• Transition arrangements• Head contractor responsibilities• Reporting requirements• Reporting example• Compliance• Panel questions

What is the GBT Policy?

• Replaces the Priority Start – Building Policy (PSB).

• Ensures a sustainable construction workforce.

• Industry to meet training benchmarks.

• Applies to contracts resulting from tenders issued from 1 October 2015.

• From 1 October 2015 companies with contracts under PSB can remain under the PSB Policy or move to the GBT Policy – with agreement of ALL parties.

• Transition arrangements may apply to contracts awarded between now and 30 September 2015.

• Contracting agencies will advise DTWD when there is agreement to transition to the GBT Policy.

Transition arrangements

4

What contracts are in scope of the GBT Policy?• State Government building and construction contracts

(including civil and engineering contracts) with an estimated labour value of $2 million and over for the construction component of the contract.

• State Government maintenance contracts with an estimated labour component of $2 million and over for the total contract.

• If a head contractor is in scope then all of the subcontractors being used on the contract are also in scope.

• Contracts over 3 months duration.

What workers are in scope of the GBT Policy?

• Construction workers (including apprentices and trainees) employed in WA by:• head contractors; and• subcontractors they are using for the contract.

• The total construction workforce of all the companies being used for the contract, NOT the workers on the contract/construction site.

Apprentices and trainees in scopeAir-conditioning and refrigeration mechanics Electrician

Bricklayers and stonemasoneg. Cert III Bricklaying/Blocklaying

Glaziereg. Cert III in Glass and Glazing

Building and construction labourereg. Cert II in Construction, Cert III in Demolition

Mobile plant operatoreg. Cert III in Trenchless Technology

Cabinetmaker Painter

Carpenters and joiner Plasterer

Civil construction supervisoreg. Cert IV in Civil Construction Supervision

Plumbereg. Cert II in Drainage; Cert III in Roof Plumbing

Concreter Roof tiler

Crane, hoist and lift operator Structural steel and welding trades worker

Earthmoving plant operator Wall and floor tiler

9

Construction worker occupation categoriesAir-conditioning and refrigeration mechanics

Bricklayers and stonemasons eg. Blocklayer, Bricklayer, Stonemason

Building and construction labourers eg. Builder's labourer, Civil construction worker, Plumber’s labourer

Cabinet makers

Carpenters and joiners eg. Carpenter, Carpenter and joiner, Fixing carpenter, Joiner, Shop fitter

Concrete workers

Crane, hoist and lift operators eg. Crane, hoist or lift operator, Dogger, Elevated work platform operator, Pile driver

Earthmoving and mobile plant operators - Backhoe operator, Bobcat operator, Civil construction worker

Electricians eg. Electrical fitter, Electrical mechanic, Electrician, Lift mechanic

Glaziers

Painters

Plasterers eg. Fibrous plasterer, Plasterer, Dry wall plasterer, Solid plasterer

Plumbers eg. Drainer, Fire protection technician, Fire sprinkler fitter/installer/tester, Gas fitter, Plumber

Roof tilers

Structural steel and welding trades workers eg. Boilermaker, Pressure welder, Sheet metal worker, Welder

Wall and floor tilers eg. Tiler, Wall and floor tiler

Target training rate• A head contractor’s total training rate only has to meet the

target in the final report for each financial year.

• The 2015–16 rate is 11.5%.

• Variations may be considered in exceptional circumstances.

11

Head contractor responsibilities• Collect information from all subcontractors to calculate

the total training rate.

• Meet the target training rate in the final Total Training Rate Report submitted each financial year.

• Keep supporting information used to calculate the total training rate for audit purposes.

Note: there is no pre-registration process in the new policy.

• Submit a Total Training Rate Report each quarter:

Reporting period Report due1 July–30 September 31 October1 July–31 December 31 January1 July–31 March 30 April1 July–30 June 31 July

Head contractor responsibilities (cont.)

14

How to calculate the total training rate

NOTE: Construction trades workers (including apprentices and trainees) DO NOT have to be working on the contract site or on work related to the contract to be included in the total training rate.

16

Example• Contract awarded 1 July 2016 (labour value > $2M).• Construction work starts 15 October 2016.• Expected completion 30 November 2017.• Head Contractor XYZ hires 3 subcontractors (A, B and C) for the

contract. • Steps:

1. Determine reporting schedule2. Collect information required to calculate total training rate3. Calculate the total training rate4. Report the total training rate to the contracting agency (client)

1. Determine reporting scheduleConstruction work expected to run from 15 October 2016 to 30 November 2017 .

Financial year 2016–2017

Financial year 2017–2018

Reporting period Due date Cumulative reporting quarter1 31 January 2017 1 October – 31 December 20162 30 April 2017 1 October – 31 March 2017

3 31 July 2017 1 October – 30 June 2017 (Target training rate must be met)

Reporting period Due date Cumulative reporting quarter4 31 October 2017 1 July – 30 September 20175 31 January 2018 1 July – 31 December 2017

(Target training rate must be met)

17

2. Collect information required to calculate the total training ratea) Number of construction apprentices and trainees

Apprentices and trainees must be: undertaking a construction apprenticeship or traineeship in scope of the policy; past their probation period; working in WA at any time during the financial year to date; employed directly, or through a Group Training Organisation or skill hire

company by:o Head Contractor XYZo Subcontractor A o Subcontractor Bo Subcontractor C;

only counted once during the reporting period; and counted as a full time employee (except school-based apprentices and trainees

who count as 50%).

18

b) Number of construction trades workers

Construction trades workers (including apprentices and trainees) must be: employed in a construction trades worker occupation in scope of the policy; working in WA during the financial year to date; and employed by:

o Head Contractor XYZ o Subcontractor A o Subcontractor Bo Subcontractor C.

Part time employees must be converted to full time equivalents.

NOTE: Construction trades workers (including apprentices and trainees) DO NOT have to be working on the contract site or on work related to the contract to be included in the total training rate calculations.

19

3. Calculate the total training rateHead Contractor XYZ uses this formula to calculate their total training rate:

Total (a) Number of construction apprentices/trainees in training in WA training = x 100 rate % (b) Number of construction trades workers (full time equivalents) in WA

20

Reporting period 1 (1 October 2016 – 31 December 2016)

Construction commenced 15 October 2016. Two subcontractors (A and B) worked on the contract during this reporting period.

Total (a) Head contractor construction apprentices/trainees + Subcontractors (A & B) construction apprentices/trainees for the reporting periodtraining =

x 100rate % (b) Head contractor construction trades workers + Subcontractors (A & B) construction trades workers for the reporting period

Contractor A&Ts*(a)

Average construction**trades workers (b) Calculation Total training rate

Head Contractor XYZ 20 200(a) 78 x 100 (b) 790

9.8 %Subcontractor A 47 500

Subcontractor B 11 90

Total A&Ts = 78 Average = 790

*construction apprentices and trainees**To work out the average construction trades workers, choose at least two dates during the reporting period and

calculate an average based on the number of construction trades workers employed at those dates.

NOTE: Head Contractor XYZ does not have to meet the 11.5% target training rate this reporting period.

Reporting period 2 (1 October 2016 – 31 March 2017)

Three subcontractors (A, B and C) worked on the contract during this reporting period.

Total (a) Head contractor construction apprentices/trainees + Subcontractors (A, B & C) construction apprentices/trainees for the reporting period training = x 100 rate % (b) Head contractor construction trades workers + Subcontractors (A, B & C) construction trades workers for the reporting period

Quarter 1 Quarter 2 Reporting period 2

Contractor A&Ts*

Averagetrades

workers

NewA&Ts

*

Averagetrades

workers

A&Ts*(a)

Average construction trades workers (b) Calculation

Total training

rate

Head contractor XYZ 20 200 0 170 20 + 0 = 20 (200 + 170) / 2 = 185

(a) 87 x 100(b) 875

9.9 % Subcontractor A 47 500 3 550 47 + 3 = 50 (500 + 550) / 2 = 525

Subcontractor B 11 90 2 100 11 + 2 = 13 (90 + 100) / 2 = 95

Subcontractor C 4 70 4 70

*construction apprentices and trainees

Total A&T = 87 Average = 875

NOTE: Head Contractor XYZ does not have to meet the 11.5% target training rate this reporting period.

Reporting period 3 (1 October 2016 – 30 June 2017)

Three subcontractors (A, B and C) worked on the contract during this reporting period.

Contractor Quarter 1 Quarter 2 Quarter 3 Reporting period 3

A&Ts*Averagetrades

workers

NewA&Ts

Averagetrades

workers

NewA&Ts

Averagetrades

workers

A&Ts (a)

Average construction trades workers (b) Calculation

Total training

rate

Head Contractor XYZ 20 200 0 170 4 200 20+0+4=24 (200+170+200) / 3 = 190

(a) 106 x 100(b) 918

11.5%Subcontractor A 47 500 3 550

47+3=50 (500+550) / 2 = 525

Subcontractor B 11 90 2 100 7 200 11+2+7=20 (90+100+200) / 3 = 130

Subcontractor C 4 70 8 76 4+8=12 (70+76) / 2 = 73

*construction apprentices and trainees Total A&T = 106 Average = 918

Total (a) Head contractor construction apprentices/trainees + Subcontractors (A, B & C) construction apprentices/trainees for the reporting periodtraining = x 100rate % (b) Head contractor construction trades workers + Subcontractors (A, B & C) construction trades workers for the reporting period

NOTE: This is the final Total Training Rate Report for the financial year therefore the target training rate of 11.5% must be met.

Period covered by this report: Reporting period 3 Report due ☐ 1 July–30 September 31 October

  ☐ 1 July–31 December 31 January  ☐ 1 July–31 March 30 April

x 1 July–30 June 31 July 2017

Date submitted: 29 July 2017

To complete Part C please refer to:

i) How a head contractor calculates their total training rate

ii) Construction apprenticeships and traineeships list for in scope apprentices and trainees

iii) Construction trades worker occupations list for sample in scope construction trade workers

Part A: Head contractor details

Business name: XYZ Nominees

Trading name: Head Contractor XYZ

Australian Business Number (ABN): 12 345 678 912

Contact name: John Citizen

Contact phone: 1234 1234 Email: john.citizen@xyz.com.au

Part B: Contract details

Number: 123/2016

Contract title: School

Description: Building of a 20 classroom secondary school as per tender specifications.

Award date: 31 July 2016

Commencement date: 15 October 2016

4. Report the Total Training Rate to contracting agency (client)

Part C: Total training rate

Number of construction apprentices and trainees (a)Total number of construction apprentices and trainees employed in Western Australia this financial year to date, by your company and the subcontractors you are using for the contract .

 106

Number of construction trades workers (b)Average number of construction trades workers, including apprentices and trainees, employed in Western Australia this financial year to date, by your company and the subcontractors you are using for the contract.

 918

Total training rate = [ (a) divided by (b) ] x 100  11.5%

Part D: Subcontractors (list all subcontractors working on the contract)

Name ABN

 Subcontractor A 12 342 345 001

 Subcontractor B 23 451 232 222

 Subcontractor C 22 456 111 343

Part E: Apprentices/trainees (list all unique apprentices and trainees)  

Apprentices/trainees Head contractor/subcontractor

Name TRS ID* Name

Stephen Webb 123123A1 Head Contractor XYZ

Neil Wellings 233445A1 Subcontractor A

Janice James 234689T1 Subcontractor B

Mitchell Lewis 334234A1 Subcontractor C

etc.

* The apprentice/trainee TRS ID has eight characters and is provided by the Department of Training and Workforce Development on lodgement of the training contract.

• Compliance requirements will be stated in the head contractor’s contract.

• Variations/exemptions to the prescribed target training rate (currently 11.5%) may be negotiated with the State Government contracting agency under exceptional circumstances.

• Compliance will be monitored by the contracting agency.

• Contracting agencies will report policy implementation in their annual reports, including variations granted.

Compliance

26

Summary• Applies to State Government building, construction (including civil) and

maintenance contracts.

• No pre-registration required.

• Relates to companies being used on the contract NOT the workforce working on the contract/construction site.

• Specific construction apprenticeships, traineeships and workers in scope.

• Head contractors must:• submit quarterly Total Training Rate reports to contracting agency/client;

• meet the target training rate (11.5%) in the final report submitted each financial year; and

• keep records for audit purposes.

• Subcontractors must provide apprentice/trainee and construction workforce information to head contractors.

Panel questions……Department of FinanceBuilding Management and Works

Anna RechichiAssistant Director Procurement

Main Roads WA Scott SpicerManager Supply and Transport

Department of Housing Warren CowperManager Metro Construction

Public Transport Authority (PTA) Martin SalePrincipal Contract Coordinator

Department of Training and Workforce Development

Ross KellyDirector, Policy Planning and ResearchKaren PurdyManager, VET System Policy

Further information on the GBT Policy

Website: dtwd.wa.gov.au

Email: policy.gbt@dtwd.wa.gov.au