The risks of and barriers to social procurement in construction: a supply chain perspective

Abstract

Social procurement policies place new requirements on subcontractors to create employment opportunities for people suffering disadvantage. However, the subcontractor’s voice is largely absent from the social procurement debate, despite employing the majority of people in the construction industry. Addressing this gap in social procurement research, a survey of seventy Australian subcontractors was undertaken to explore perceived barriers to integrating six disadvantaged groups targeted by social procurement policies into the construction workforce (Indigenous people, people suffering disability, women, disengaged youth, migrants and refugees, ex-offenders). Results indicate that rather than reducing disadvantage for the most marginalised groups in society, satisficing behaviour in complying with emerging social procurement policies could have the opposite effect. Subcontractors see significant business risks associated with safety, productivity and costs with disengaged youth being perceived as the highest risk cohort, followed by migrants and refugees, people suffering disability, ex-offenders, women and Indigenous workers and employment priorities reflect these perceptions. Perceived barriers to employment vary significantly across these groups with smaller and younger firms perceiving the greatest barriers – particularly for women and Indigenous workers. Practically, the results highlight the potential risks which social procurement policies present to vulnerable people if they are introduced without sufficient support and regard for an industry’s culture, structure and capacity to deliver. Conceptually, taking this research forward, the results highlight the potential value of cross-sector collaboration and intersectionality as theoretical frameworks to better understand how these groups experience working in the construction sector.