From design and planning to steel fabrication, welding and plumbing, MPSG requires government suppliers to invest in our future workforce skills, supporting a strong and resilient economy. The MPSG helps to kickstart careers and supports future industry capability by:

  • demonstrating the value local apprentices, trainees and cadets can add to projects
  • helping to train the next generation of skilled workers
  • exposing local apprentices, trainees and cadets to workplace practices, technologies, innovations and materials.

You can find out more about the MPSG’s purpose and objectives in the MPSG Policy Statement.

Which projects does MPSG apply to?

MPSG requirements apply to all Victorian Government construction projects valued at or above $20 million.

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.

How does it work?

MPSG-applicable projects include a requirement for the contractor to deliver at least 10 per cent of labour hours using apprentices, trainees and cadets. This is based on estimated labour hours provided by bidders at project tendering. The total labour hours under the MPSG are based on the total value of the project, including all sub-contracting under the principal contract.

Who counts towards MPSG?

Apprenticeships, traineeships and cadetships are three different learning pathways that combine on-the-job training and formal study. The MPSG Policy Statement  provides an overview of how the policy works and who it benefits. Detailed implementation guidance including definitions of apprentices, trainees and cadets is contained in the Local Jobs First Agency Guidelines and Supplier Guidelines.

FAQ - Eligible Apprentices, Trainees and Cadets under MPSG PDF

FAQ - Eligible Apprentices, Trainees and Cadets under MPSG DOC

Estimating Labour Hours under MPSG

For project tenders released on or after 31 January 2023, the process for estimating labour hours is being streamlined so that the bidder submits a single employment commitment in the Local Industry Development Plan which will be used to inform both the MPSG and VIPP requirements.

As a result of this change, bidders will no longer be required to use the Deemed Hours Formula to estimate the minimum MPSG 10 per cent requirement. A simplified and updated Deemed Hours Formula will be available for optional use by suppliers and agencies.

Transitional arrangements are currently in place for MPSG project tenders released before 31 January 2023.