The MPSG requires all construction projects valued at or over $20 million to use Victorian apprentices, trainees or cadets for at least 10 per cent of the total estimated labour hours. The MPSG therefore applies to both Standard and Strategic (more than $50 million) Projects.

The MPSG ensures that young Victorians benefit directly from the major infrastructure projects being undertaken in our state and ensures that we continue to grow the next generation of skilled workers in Victoria.

The MPSG applies regardless of the amount given over in a project budget to the actual construction component. For example, if only $20 million of a $60 million project is for construction, the MPSG still applies to the total project value but can be utilised across all aspects of the project. In practice this could mean cadets engaged for design, engineering or architecture at the beginning of a project through to apprentices during the construction phase.

The total labour hours under the MPSG are based on the total value of the contract, including all sub-contracting under the principal contract, and is determined by using the prescribed Deemed Hours Formula.

The ratios and rates used within the Deemed Hours Formula vary with the type of project. Separate labour ratios and hourly rates have been developed for building construction projects, civil and infrastructure projects, and for mixed building and infrastructure construction projects based on industry data as detailed in the table below.

 

Rate

Value ($)

Total project value (excluding GST)

 

$250,000,000

Less profit margin

 

$20,000,000

Less specialist equipment

 

$55,500,000

Total contract deductions

 

$75,500,000

Adjusted MPSG value

 

$174,500,000

Deemed labour ratio

15 per cent

$26,175,000

Deemed labour hourly rate

$70 p/h

373,929 hours

Minimum 10 per cent requirement

10 per cent

37,392 hours

Engaging new Apprentices, Trainees and Cadets

Contributions from MPSG may be from apprentices, trainees and cadets directly employed by the principal contractor or subcontractors or indirectly employed through group training organisations (GTOs).

Bidders are encouraged to use Victorian apprentices, trainees or cadets drawn from groups who are generally under-represented in industry vocational training such as women, and/or who face barriers to vocational training or the workforce more generally, such as indigenous or older apprentices, trainees or cadets or those with a disability. A key resource to achieve this will be state and federal employment programs for helping long-term job seekers, such as Jobs Victoria. The Jobs Victoria website can be found at https://jobs.vic.gov.au/.