The Queensland government has announced a pause on Best Practice Industry Conditions (BPICs) for new government-funded construction projects in a bid to boost productivity and reduce costs.
This decision comes as part of the government’s commitment to deliver projects on time and on budget.
Deputy Premier Jarrod Bleijie stated that BPICs have significantly impacted productivity and labour capacity, resulting in delays on government-funded major 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 said.
The pause will apply to new projects and those that have not yet reached the procurement stage.
Treasury modelling reveals that if BPICs continued in their current form, Queenslanders would face a 7 per cent increase in rent over the next five years, and 22,000 fewer homes would be built across the state.
Importantly, the government has emphasised that safety standards will not be compromised, as best practice workplace health and safety systems and standards, as well as commitments to apprentices and trainees, will remain in force.
The decision is expected to have several positive outcomes:
- Reduced red tape and building costs
- Increased competition and productivity
- Improved housing supply
- Greater opportunities for small and family businesses and regional firms to secure work on government projects
Independent economic modelling by Queensland Treasury estimates that BPICs would likely increase project costs by up to 25 per cent and create a net economic cost of up to $17.1 billion over 2024-30.
The government plans to introduce legislation to re-establish the Queensland Productivity Commission by the end of 2024, with its first task being a review of the Queensland building industry.
This move has been welcomed by industry groups, including the Australian Constructors Association, who see it as an opportunity to improve efficiency and deliver infrastructure at a more affordable price.
As Queensland embarks on its largest infrastructure delivery program in the state’s history, this policy change aims to address challenges such as worker shortages and flatlining productivity that have been impacting infrastructure projects nationwide.
