The Queensland Government has paused the use of Best Practice Industry Conditions (BPICs) on new state-funded construction projects.
Deputy Premier Jarrod Bleijie said BPICs have had a significant impact on productivity and labour capacity and resulted in delays on government-funded major projects.
Deputy Premier Bleijie said the Government would introduce legislation to re-establish the Queensland Productivity Commission (QPC) by the end of the year, and will then task the Commission to review the state’s building industry.
“Until the review has occurred and the government has responded, BPICs will be paused,” he said.
Deputy Premier Bleijie said Treasury modelling showed it BPICs continued in their current form, Queenslanders would pay an additional seven percent rent over the next five years and 22,000 homes would not be built across the state.
“Independent economic modelling by Queensland Treasury over 2024-30 estimates BPICs are likely to increase project costs by up to 25 percent and create a net economic cost of up to $17.1 billion.”
He said the pause would apply to new projects and those that had not yet reached procurement stage.
“There may be opportunities for existing projects to improve productivity with the suspension.”
BPICs had applied to government construction projects costing more than $100m and set conditions on employment terms.
“BPICs required the prequalification of contractors and subcontractors before being able to undertake major government project work, limiting the pool of available contractors and sub-contractors.”
Deputy Premier Bleijie said industry bodies had said BPICs created extra red tape and distorted procurement outcomes, contributing to increased costs and reduced market competition.
He said safety outcomes would not be compromised as a result of the pause.
“Best practice workplace health and safety systems and standards and best practice commitment to apprentices and trainees will continue to remain in force.”
Deputy Premier Bleijie said the change would also give sub-contractors, especially small and family businesses and regional firms, a greater chance of securing work on government projects, without the costs and time involved in having to gain prequalification.
