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Compliance with policy requirements (Attachment 2 to Instruction 7.2)

Attachment 2 to Instruction 7.2 lists policy requirements that need to be included in contracts.

Effective date: 8 July 2020

Procuring Works that may require the use of tip trucks

This requirement relates to Instruction 7.2.1(h).

When procuring Works that may require the use of tip trucks, Agencies must ensure that their contracts require the Contractor to ensure that any tip truck owner driver engaged in connection with excavation work, directly or indirectly, through one or more subcontractors, is paid according to the following requirements.

(i) if a tip truck owner driver is to be paid at an hourly rate then the hourly rate must be at least the applicable rate listed in the Rates and Cost Schedules for Tip Truck Owner Drivers developed by Transport Industry Council plus any Freight Broker fees due and payable and road tolls reasonably incurred;

(ii) if a tip truck owner driver is to be paid on a per load rate then the per load rate must be arrived at based on a reasonable estimate of the time likely to be required to complete the specific job, multiplied by the applicable rate listed in the Rates and Cost Schedules for Tip Truck Owner Drivers developed by Transport Industry Council, and adjusted for any agreed incentive component plus any Freight Broker fees due and payable and road tolls reasonably incurred;

(iii) for the purposes of calculating a per load rate, a reasonable estimate of the time likely to be required must:

1. take into account all of the relevant circumstances of the specific job, including but not limited to the volume or weight of the load to be moved, distance to be travelled for transfer, local traffic conditions, time of day, expected waiting times, special site conditions and other special circumstances; and

2. be based on what a competent and experienced person in the position of the person engaging the tip truck owner driver would consider to be a reasonable estimate.

(iv) if a per load rate includes an incentive component in addition to the minimum hourly rate, this incentive component may be reduced in proportion to any shortfall in the load moved, as agreed between the tip truck owner driver and the party engaging them;

(v) where project specific requirements (such as, but not limited to, additional safety requirements) add to the costs that would normally be incurred by the tip truck owner driver, then payments to the tip truck owner driver may need to be increased by the rate determined by the Principal, and

(vi) if the tip truck owner driver is underpaid, the Contractor must make good that underpayment or otherwise ensure that it is paid.

Engaging new employees for projects within the Building Works stimulus package announced on 18 May 2020

This requirement relates to Instruction 7.2.1(i).

When procuring Works or Construction Services, Agencies must ensure that contracts used for projects within the Building Works stimulus package announced on 18 May 2020 require the Contractor and subcontractors to source, in the first instance, new employees from Working for Victoria, according to the following requirements:

(a) if the Contractor needs to employ new employees to perform work, such employees must, in the first instance, be sourced from a pool of jobseekers who have registered on the Working for Victoria platform;

(b) a pass through provision so that the requirement in paragraph (a) extends to subcontracts entered into by the Contractor, or by subcontractors of any tier;

(c) acknowledgements by the Contractor that:

(i) listing on the Working for Victoria platform is not a reflection on the qualifications, suitability or experience of applicants or employees, or the Victorian Government’s or the Principal’s views of a jobseeker or Employee;

(ii) the Victorian Government and the Principal do not make any guarantees, warranties, representations or endorsements regarding the qualifications, suitability or experience of jobseekers or employees from the Working for Victoria labour pool, or the quality or type work or services performed by an employee selected from Working for Victoria;

(iii) it is the Contractor’s responsibility to verify the qualifications, suitability and experience of jobseekers to undertake the work or services required of the jobseeker;

(iv) it is the Contractor’s responsibility to enter into an employment relationship with each employee selected from Working for Victoria and to supervise that employee.  Neither the Victorian Government or the Principal will be a party to any legal relationship (including but not limited to an employment relationship) with any employee by virtue of the Working for Victoria platform or the contract, and

(v) the employee will be paid an amount no less than the applicable award rate, or the site rate, whichever is higher;

(d) provides that the Contractor will submit quarterly reports and a final report demonstrating compliance with this requirement;

(e) provides for verification of compliance with these requirements;

(f) provides for the use and sharing of statistical information contained in reports demonstrating compliance with this requirement; and

(g) provides that the Contractor agrees and acknowledges that all information accessed by it through the Working for Victoria platform is subject to the terms and conditions of that platform, and that it complies with those terms and conditions.

Tools and support

For further information about the Ministerial Directions and Instruction for public construction procurement, please contact the Construction Policy Team.

Reviewed 12/04/2021
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