Overview
ISO 10845-8:2011 - "Construction procurement - Part 8: Participation of targeted labour in contracts" defines a standardized key performance indicator, the contract participation goal (CPG), for measuring and managing the engagement of targeted labour on construction and services contracts. The standard specifies how a CPG is set, measured, credited and verified under two targeting strategies (A and B) and prescribes documentation, monitoring and compliance processes to make targeted-labour objectives auditable and enforceable.
Key topics and requirements
- Contract Participation Goal (CPG): A CPG is the monetary value of wages and allowances for targeted labour expressed as a percentage of the contract amount (per the chosen targeting strategy).
- Targeting strategies:
- Strategy A: Bases the CPG on the tendered contract amount (minus allowances) and may include tender-evaluation incentives or minimum performance thresholds. Contractors must submit a CPG implementation plan (Annex C) promptly - typically within five working days of instruction or before the first payment claim.
- Strategy B: Measures CPG relative to the final contract value and can use financial incentives or reporting obligations to record outcomes.
- Credits and weightings: Wages and allowances paid to targeted labour are converted to percentage credits against the contract amount and adjusted by weightings for different target groups (typical weightings cited are about 0.5–1.5).
- Documentation & verification: Contractors must enter written contracts with targeted labour, provide monthly schedules of personnel, wages and cumulative payments (Annex F gives an example), and submit supporting documentation for certification by the employer’s representative.
- Compliance and sanctions: The standard sets out compliance checks, denial of credits where contractual or documentation requirements aren’t met, and sanctions for non‑compliance (see Clause 6).
Practical applications
- Embedding social and local‑economic objectives (job creation, poverty alleviation, local employment) into construction procurement.
- Creating measurable, auditable performance targets for contractors during tender evaluation and contract performance.
- Supporting tender evaluation where a CPG contributes to scoring (targeting strategy A).
- Designing payment incentives or post‑contract reporting schemes tied to labour outcomes (targeting strategy B).
- Tracking and certifying labour spend for compliance, reporting and audit purposes.
Who uses this standard
- Public and private employers (clients) and procuring authorities issuing construction or service contracts
- Contractors and subcontractors required to meet targeted‑labour obligations
- Procurement officers, contract managers, compliance and HR teams, social‑procurement specialists, auditors and NGOs involved in local economic development
Related standards
ISO 10845 series (Parts 1–7) - see especially Parts 1 (processes), 5 (targeted enterprises), 6 (partners), and 7 (local enterprises and labour) for complementary procurement guidance.
Keywords: ISO 10845-8:2011, construction procurement, contract participation goal, targeted labour, targeting strategy A, targeting strategy B, procurement compliance, CPG implementation.
