The Queensland Productivity Commission’s interim report on productivity has called for sweeping changes to the way major infrastructure projects are planned and delivered, warning that current practices are inadequate to meet the state’s looming construction demands.
The report outlines a need for more collaborative procurement models, better coordination of project pipelines, and a shift in focus toward value for money rather than the lowest upfront cost.
It also identifies barriers to modern construction methods and unnecessary regulatory complexities as key drags on efficiency.
The Australian Constructors Association (ACA) said the findings reinforce what the industry has been advocating for over several years.
ACA CEO Jon Davies said the report makes it clear that business-as-usual won’t cut it.
“To deliver Olympic and other major infrastructure projects on time and on budget, we need more collaborative procurement, a coordinated pipeline and a strong focus on value for money — not lowest cost or pushing risk onto contractors,” said Davies.
The Commission’s interim report stresses the importance of early collaboration between all stakeholders on major projects, a point strongly welcomed by the ACA.
“The Commission’s recognition that more collaborative practices will be required is a welcome step forward.
“Major project delivery is a team sport.
“It’s encouraging to see the Commission acknowledge the importance of bringing all players to the table early to navigate the challenges ahead,” Davies said.
A significant aspect of the report is its support for removing barriers to modern methods of construction (MMC), such as prefabrication and modular building techniques.
These approaches are seen as a way to boost productivity, reduce costs, and address skilled labour shortages.
“The ACA is leading the MMC stream of the National Construction Strategy, working with the Queensland, New South Wales, Victorian and federal governments to help boost productivity, ease workforce pressures and deliver better long-term value for public investment,” Davies said.
The Commission has also recommended scrapping the Building and Construction Industry Payments and Contracts (BPIC) framework, which it concluded adds unnecessary complexity and cost.
“Queensland has a once-in-a-generation infrastructure task ahead. This report confirms the need for urgent reform and gives us a clear roadmap to get started,” Davies said.
The interim report comes as Queensland prepares for an unprecedented wave of infrastructure investment ahead of the 2032 Olympic Games, alongside ongoing transport, energy, and community facility projects across the state.
A final report from the Queensland Productivity Commission is expected later this year, with the government under pressure from both industry and economic advisors to act quickly on its recommendations.
