Picture: ANDREW KACIMAIWAI
The Queensland Government is to reinstate the state productivity commission as it moves to cut construction costs and boost productivity on major state projects.
The government says it is suspending Best Practice Industry Conditions (BPICs) and re-establishing the Queensland Productivity Commission (QPC) this year to review the building industry.
Deputy Premier Jarrod Bleijie says BPICs have had a significant impact on productivity and labour capacity, with delays to major public projects.
“We need to urgently control the cost blow-outs of government-funded construction projects, which ultimately hits the hip-pockets of Queensland families and businesses,” Bleijie says.
“It will also give sub-contractors, especially small and family businesses and regional firms, a greater chance of securing work on government projects without all the costs and time involved in having to gain unnecessary prequalification.”
Minister for Housing and Public Works Sam O’Connor says the decision also affects energy projects.
“If BPICs were to continue, they would apply to energy and storage projects implemented by government owned corporations, placing upward pressure on electricity prices and household cost of living,” he says.
From 2024-30, Treasury says BPICs could increase project costs by up to 25 per cent with a net economic cost of up to $17.1 billion.
Minister for Transport and Main Roads Brent Mickelberg said pausing BPICs would allow for new projects to go ahead without extra costs during the QPC review.
“We will honour existing contracts and work with industry as best as we can to help deliver those on time and on budget.”
The government says Treasury modelling shows that the BPIC would cost Queenslanders an extra 7 per cent in rent over five years with 22,000 fewer homes built.
ACA REACTION
The Australian Constructors Association (ACA) welcomed the news.
“The BPIC pause does not mean we lose sight of the critical importance of safety and training,” association CEO Jon Davies says.
“Our workers are our greatest asset, and they stand to benefit significantly from enhanced productivity.”
The ACA also welcomed the return of the QPC.
“We are committed to working alongside the Queensland Government and the broader industry to realise the $10.93 billion annual productivity potential (that) this pause and an increased focus on efficiency offers to Queensland,” said Davies.
“This is an exciting time for Queensland, and we look forward to collaborating with the government to strengthen Queensland’s infrastructure pipeline while building a more sustainable future for the construction industry.”
The ACA is the representative body for contractors.
More information about BPIC is available at: Supporting Best Practice Principles | Department of Energy and Climate
