The Queensland government has announced a pause on the use of Best Practice Industry Conditions (BPIC) for new government-funded construction projects, a move welcomed by the Australian Constructors Association (ACA).
This decision comes as part of the government’s efforts to address budget overruns and improve productivity in the construction sector.
ACA CEO Jon Davies expressed support for the government’s focus on enhancing productivity, stating: “The BPIC pause does not mean we lose sight of the critical importance of safety and training. Our workers are our greatest asset, and they stand to benefit significantly from enhanced productivity.”
The pause is expected to remain in place until early 2025, allowing the newly re-established Queensland Productivity Commission (QPC) to conduct a review of the building industry.
The government has pledged to introduce legislation to reinstate the QPC before the end of 2024.
Deputy Premier Jarrod Bleijie highlighted the urgency of controlling cost blow-outs in government-funded construction projects, citing independent economic modelling by Queensland Treasury.
The modelling estimates that BPICs could increase project costs by up to 25 per cent and create a net economic cost of up to $1.7 billion over 2024-30.
The ACA views this pause as an opportunity to realise significant productivity gains.
Davies stated: “We are committed to working alongside the Queensland government and the broader industry to realise the $10.93 billion annual productivity potential this pause and an increased focus on efficiency offers to Queensland.”
While the construction industry generally supports the move, unions have expressed dissent and flagged potential protest actions.
The government maintains that the pause does not affect existing safety obligations.
As Queensland moves forward with this policy change, the construction industry anticipates collaborating with the government to strengthen the state’s infrastructure pipeline and build a more sustainable future for the sector.
