The S-Word is Here to Stay

Over the past decade, one word has steadily reshaped how we work, hire, and deliver construction projects: Social Procurement.

For many wall and ceiling contractors, social procurement can seem like a buzzword or yet another compliance hurdle in an already complex project environment. But in reality, it’s a powerful driver of change – influencing who gets contracts, how projects are delivered, and the legacy we leave in our communities.

I have seen this change up close. Before joining AWCI Australia, I was the founder of Kinaway Chamber of Commerce in 2010, Victoria’s leading Aboriginal business chamber, which has been at the forefront of advocating for Aboriginal businesses and supporting government initiatives in the social procurement space.

Later, I served as Social Inclusion Director on the North-East Link Project, one of Victoria’s largest infrastructure projects, where I helped design and implement strategies to embed social procurement into every stage of delivery.

These experiences taught me a vital truth: social procurement isn’t just policy – it’s practice. It’s about creating real opportunities for people and communities through the work we do every day.

 

What is Social Procurement?

At its simplest, social procurement means using purchasing power to achieve positive social outcomes alongside delivering the core goods or services.

For government and tier-one builders, it’s about making every dollar count for more than just the project. When public money is spent on construction, it should also:

• Create meaningful jobs for people who face barriers to employment, such as Aboriginal people, long-term unemployed, or people with disabilities.
• Support local economies by engaging small businesses and local suppliers.
• Build skills pipelines through apprenticeships and traineeships.
• Promote diversity and inclusion, especially women in construction and leadership.
• Encourage sustainable practices, reducing environmental impact and waste.

In other words, social procurement is about impact, not just output. It’s about how we build, not just what we build.

 

Why It Matters for Contractors

For wall and ceiling contractors, social procurement is no longer optional – it’s a mandatory component of most government-funded projects.

Clients now expect contractors to:

1. Demonstrate social impact in their tender submissions.
2. Deliver on specific targets during the project, such as Aboriginal employment or apprenticeship ratios.
3. Track, report, and verify compliance regularly.

 

Failing to meet these expectations can result in:

• Loss of future work – non-compliance is often noted on pre-qualification registers.
• Financial penalties or withheld payments under the contract.
• Damage to your reputation, both with clients and within the broader industry.

 

On the flip side, those who embrace social procurement can differentiate themselves competitively, build stronger teams, and create enduring community connections.

How to Fulfil Your Social Procurement Obligations

Getting social procurement right starts long before you step on site. Here is how to approach it strategically:

1. Understand the Requirements Early

• Read the tender documents carefully – social procurement clauses are often embedded in multiple sections.
• Identify key targets, reporting schedules, and compliance evidence needed.
• If anything is unclear, seek clarification before you submit your bid.

 

2. Map Your Workforce

• Look at upcoming project needs and identify where roles can be filled by apprentices, Aboriginal workers, or other priority groups.
• Use AWCI Australia’s networks to connect with our training provider partners, Aboriginal employment services, and local agencies.

 

3. Partner with Certified Suppliers

• Engage Aboriginal-owned businesses or social enterprises for supplies and subcontracting work, Kinaway is a great broker to these businesses.
• This not only fulfils social procurement spend targets but also builds inclusive supply chains.

 

4. Embed Cultural Awareness

• Cultural competency isn’t just a box to tick – it’s a foundation for success.
• Make sure supervisors, managers, and crews complete relevant cultural awareness training, especially when working with Aboriginal employees or suppliers.

 

5. Document and Report

• Keep accurate, up-to-date records of workforce participation, training hours, and supplier spend.
• Many contractors get caught out by failing to track data continuously, leaving them scrambling at reporting time.

 

Pitfalls to Avoid

Social procurement can deliver enormous value, but there are common traps contractors fall into: Pitfall	Why It’s a Problem
Treating it as an afterthought	Leads to last-minute panic and missed targets.
Over-promising in tenders	Sets unrealistic expectations you cannot deliver on.
Poor supervisor buy-in	Creates resistance at site level and undermines compliance.
Ignoring reporting needs	Without records, you can’t prove outcomes – even if achieved.
Cultural insensitivity	Damages relationships with Aboriginal workers and communities.

 

For more information Social Procurement Factsheet