The Queensland Productivity Commission is suggesting a major overhaul of the construction industry that could potentially impact existing bargaining agreements between enterprises. This overhaul is seen as a necessary step for the state to tackle its housing crisis and prepare for hosting the 2032 Olympics. The Commission released an interim report on improving productivity in the construction sector, recommending the permanent removal of “Best Practice Industry Conditions” (BPICs) from the state’s procurement policy. BPICs were introduced by the previous Labor government in 2018 to standardize construction workers’ pay and conditions for all major state projects. While supporters of BPICs argue that it improved safety, standards, and apprenticeship opportunities for women and Indigenous workers, opponents claim it led to cost overruns and work site disruptions.
In response to the report, the Liberal National party has paused the implementation of BPICs until the review of the building industry is completed. However, the Commission’s interim recommendations go further than just scrapping BPICs, arguing for a “broader industry reset” to meet the needs of a growing population, match infrastructure commitments, and deliver the 2032 Olympic and Paralympic Games. The report cites industry stakeholders who blame BPICs for a slowdown in productivity on public construction workplaces and for similar conditions creeping into the private sector. The commission asserts that removing BPICs alone might not be enough to improve productivity or behaviors on government construction sites, suggesting a more comprehensive approach is needed. The Queensland Council of Unions disputes the commission’s findings, arguing that declining productivity is not due to labor agreements but rather global supply chain constraints and material shortages. The union also highlights the need to focus on addressing the crisis in building and retaining a Queensland workforce, emphasizing the importance of attracting local labor force to tackle the looming infrastructure tasks ahead.
Source: https://www.theguardian.com/business/2025/jul/31/queensland-productivity-commission-argues-construction-industry-reset-needed-to-fix-housing-crisis-and-deliver-olympics
