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

Session outline Overview of GBT Policy (including definitions) Transition arrangements Head contractor responsibilities Reporting requirements Reporting example Compliance Panel questions 2

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

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 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. 5

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. 6

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Apprentices and trainees in scope Air-conditioning and refrigeration mechanicsElectrician Bricklayers and stonemason eg. Cert III Bricklaying/Blocklaying Glazier eg. Cert III in Glass and Glazing Building and construction labourer eg. Cert II in Construction, Cert III in Demolition Mobile plant operator eg. Cert III in Trenchless Technology CabinetmakerPainter Carpenters and joinerPlasterer Civil construction supervisor eg. Cert IV in Civil Construction Supervision Plumber eg. Cert II in Drainage; Cert III in Roof Plumbing ConcreterRoof tiler Crane, hoist and lift operatorStructural steel and welding trades worker Earthmoving plant operatorWall and floor tiler 8

9 Construction worker occupation categories Air-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. 10

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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. 12

Submit a Total Training Rate Report each quarter: Reporting periodReport due 1 July–30 September31 October 1 July–31 December31 January 1 July–31 March30 April 1 July–30 June31 July Head contractor responsibilities (cont.) 13

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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. 15

Example Contract awarded 1 July 2016 (labour value > $2M). Construction work starts 15 October Expected completion 30 November Head Contractor XYZ hires 3 subcontractors (A, B and C) for the contract. Steps: 1.Determine reporting schedule 2.Collect information required to calculate total training rate 3.Calculate the total training rate 4.Report the total training rate to the contracting agency (client) 16

1. Determine reporting schedule Construction work expected to run from 15 October 2016 to 30 November Financial year 2016–2017 Financial year 2017–2018 Reporting periodDue dateCumulative reporting quarter 131 January October – 31 December April October – 31 March July October – 30 June 2017 (Target training rate must be met) Reporting periodDue dateCumulative reporting quarter 431 October July – 30 September January July – 31 December 2017 (Target training rate must be met) 17

2.Collect information required to calculate the total training rate a)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 XYZ o Subcontractor A o Subcontractor B o 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 B o 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 rate Head 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  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 period training = x 100 rate %(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) CalculationTotal training rate Head Contractor XYZ20200 (a) 78 x 100 (b) % Subcontractor A47500 Subcontractor B1190 Total A&Ts = 78Average = 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. 21

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 1Quarter 2Reporting period 2 Contractor A&Ts * Average trades workers New A&Ts * Average trades workers A&Ts* (a) Average construction trades workers (b) Calculation Total training rate Head contractor XYZ = 20( ) / 2 = 185 (a)87 x 100 (b) % Subcontractor A = 50( ) / 2 = 525 Subcontractor B = 13( ) / 2 = 95 Subcontractor C 4704 *construction apprentices and trainees Total A&T = 87Average = 875 NOTE: Head Contractor XYZ does not have to meet the 11.5% target training rate this reporting period. 22

Reporting period 3 (1 October 2016 – 30 June 2017) Three subcontractors (A, B and C) worked on the contract during this reporting period. ContractorQuarter 1Quarter 2Quarter 3Reporting period 3 A&Ts* Average trades workers New A&Ts Average trades workers New A&Ts Average trades workers A&Ts (a) Average construction trades workers (b) Calculation Total training rate Head Contractor XYZ =24( ) / 3 = 190 (a) 106 x 100 (b) % Subcontractor A =50( ) / 2 = 525 Subcontractor B =20( ) / 3 = 130 Subcontractor C =12(70+76) / 2 = 73 *construction apprentices and trainees Total A&T = 106Average = 918 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 NOTE:This is the final Total Training Rate Report for the financial year therefore the target training rate of 11.5% must be met. 23

Period covered by this report: Reporting period 3Report due ☐ 1 July–30 September 31 October ☐ 1 July–31 December31 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): Contact name:John Citizen Contact phone: 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 Report the Total Training Rate to contracting agency (client) 24

25 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 % Part D: Subcontractors (list all subcontractors working on the contract) NameABN Subcontractor A Subcontractor B Subcontractor C Part E: Apprentices/trainees (list all unique apprentices and trainees) Apprentices/trainees Head contractor/subcontractor Name TRS ID*Name Stephen Webb123123A1Head Contractor XYZ Neil Wellings233445A1Subcontractor A Janice James234689T1Subcontractor B Mitchell Lewis334234A1Subcontractor 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. 27

Panel questions…… Department of Finance Building Management and Works Anna Rechichi Assistant Director Procurement Main Roads WA Scott Spicer Manager Supply and Transport Department of Housing Warren Cowper Manager Metro Construction Public Transport Authority (PTA) Martin Sale Principal Contract Coordinator Department of Training and Workforce Development Ross Kelly Director, Policy Planning and Research Karen Purdy Manager, VET System Policy 28

Further information on the GBT Policy Website:dtwd.wa.gov.audtwd.wa.gov.au 29