Construction skills and training
Explains the circumstances where agencies must incorporate priority outcome 2.
- When procuring construction works over the threshold (refer to Rule 7), agencies must include questions about the skills development and training practices of the supplier and their subcontractors.
- This must also include questions about what more a supplier would do over the course of the contract to improve or build skills.
- Where a weighted attribute model is used, agencies must ensure that questions about skills development and training practices of the supplier and their subcontractors are included as weighted evaluation criteria.
- Where a weighted attribute evaluation model is not used, agencies must ensure that reasonable consideration is given to skills development and training.
- Agencies must have regard to any guidance published by MBIE on incorporating skills development and training in construction contracts.
- Agencies must conduct sufficient monitoring of the contract to ensure that skills development and training commitments made in the tender process are delivered and reported on, in compliance with any reporting framework published by MBIE.
- Agencies must also consider the Health and Safety practices of a supplier, including the Health and Safety training they provide to their employees.
Upskilling and developing the construction workforce
One of the current priorities for the Government is to grow the capability and capacity of the construction workforce. Government is committed to working with industry to deliver the right people, at the right time, with the right skills, to meet current and future needs in the construction sector.
Increasing the size and skill of the construction workforce will benefit the construction industry (by equipping it to better meet New Zealand’s current and future demand for construction work), as well as the Government (by enabling the industry to deliver on priority government initiatives).
Evaluating a supplier on their skills development practices gives an incentive to suppliers to invest in and increase their workforce by employing and training more apprentices. It can also encourage suppliers to create employment opportunities (or opportunities to upskill) for targeted groups such as Māori, Pasifika and women, to increase the diversity of the construction industry. This also means that suppliers who do not invest in developing the workforce are not able to undercut those who do on price.
When evaluating a supplier’s practices, you should look at what recruitment, retention, training and skills development they do in general. You should consider all levels and construction professions, including but not limited to apprenticeships and equivalent training. You should also look at what further recruitment, skills development and training suppliers would commit to doing over the course of the contract.
As with any other weighted criteria, it is important to make sure that commitments given in responses are included and monitored throughout the contract.
Applying a weighting
When determining what weighting to apply, agencies must take into consideration the length and the whole-of-life cost of the contract as detailed in the guidance.
Guidance on how to apply weightings is available on the Decide on your evaluation methodology page.
When evaluating a bid, agencies will need to take into account the training and skills development provided by subcontractors working on the contract, as well as the prime contractors.
Guidance on how to evaluate responses from suppliers.