State moves on BPICs to rein in construction ‘blow-outs’

The LNP State Government has announced a pause on Best Practice Industry Conditions on new construction projects. Deputy Premier Jarrod Bleijie said BPICs had a significant impact on productivity and labour capacity and had resulted 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,” Mr Bleijie said. “Queenslanders shouldn’t have to bear the brunt of this which is why we’ve ordered this pause and review. “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.” Criticised in some quarters as a sweetheart deal between State Labor and heavyweight construction union the CFMEU, BPICs have applied to government construction projects costing more than $100 million and set conditions on employment terms. The CFMEU has accused the LNP Government of lying to Queenslanders about the source of cost blow-outs on taxpayer-funded infrastructure projects. It said the new government was attempting to scapegoat the CFMEU and lay the groundwork for anti-worker industrial relations policies. Following through on its election commitment, the LNP State Government will introduce legislation to re-establish the Queensland Productivity Commission (QPC) by the end of 2024, with its first order of business a review of the Queensland building industry. The Australian Constructors Association (ACA) has welcomed the moves, saying it has long advocated for a focus on improving productivity to ensure it can deliver the infrastructure Queensland needs, when it needs it and at a price it can afford. “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,” ACA chief executive officer Jon Davies said. “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.” Independent economic modelling by Queensland Treasury over 2024-30 estimates BPICs are likely to increase project costs by up to 25 per cent and create a net economic cost of up to $17.1 billion. The modelling showed that if BPIC continued in its current form, Queenslanders would pay an additional 7 per cent rent over the next five years and 22,000 homes would not be built across the state.

State moves on BPICs to rein in construction ‘blow-outs’

Industry Queensland

Related News

Dolphins make a splash with coalfields kids

Boost for critical minerals processing plans

The industrial action that helped build a city

Get access to breaking mining news, now.