Queensland’s Crisafulli Government has committed to landmark reforms to increase productivity in the state’s lagging construction sector, following an independent report that called for an “industry reset” amidst Queensland’s housing crisis.
Amongst the reforms, the Government permanently removed the previous government’s controversial Best Practice Industry Conditions (BPIC) from its procurement policy on 1 January 2026, after BPIC was revealed to be crippling productivity.
The removal of BPIC – which was projected to cost Queenslanders $20.6 billion over the next five years – forms part of the Queensland Government’s biggest overhaul of procurement in decades, which includes the release of the streamlined Queensland Procurement Policy 2026.
BPIC was first introduced in 2018 for government-funded projects costing over $100 million and was negotiated between the CFMEU and the former Labor government.
It set out the pay and conditions for construction union workers, including double time when it rained and the downing of tools if the air temperature reached 35 degrees Celsius, or 29 degrees Celsius with 75 percent humidity after three hours of starting a shift.
It also saw 300 percent the hourly rate for working over Easter and Christmas, up to $100 a day for workers who lived more than 50 kilometres from site, $100 a week for workers who were required to use their own mobile phone or tablet, and a five percent pay rise every year until the end of the agreement in 2027.
As part of the commitment and to further reduce administrative burden, all policies that add complexity to the construction procurement process will be scrapped, as will barriers that stifle innovation and competition.
The commitment follows the Queensland Productivity Commission’s (QPC) final report into the state’s construction industry, which provided 64 recommendations, highlighting significant issues with red tape and union indulgence.
Last week, the Crisafulli Government agreed to, or agreed in principle to, 51 of the recommendations, including ensuring procurement decisions are focused on value for money, providing guidance on risk appetite, increasing the use of standard contracts for building works and ensuring procurement policies are production-neutral.
It has also vowed to remove pre-qualification for sub-contractors on government construction projects, to review regulator powers in conjunction with the Wood Commission of Inquiry, and to introduce a less prescriptive, better-targeted policy to boost the number of construction apprentices.
According to the QPC report, productivity in the construction sector has dropped by nine percent since 2018, resulting in 77,000 fewer new homes being built in Queensland, while labour productivity grew just five percent in 30 years.
Treasurer and Minister for Home Ownership David Janetzki said the Government had carefully considered all recommendations and was adopting a whole-of-government approach.
“We have been left a significant productivity challenge, but we have already delivered reform, including permanently axing Labor’s BPIC, recognising it was crippling productivity in Queensland,” he said.
“The Government’s response to the final report will improve productivity by reforming procurement, improving land use and building activity regulation and aiding labour market operation.”
Minister for Housing and Public Works Sam O’Connor said productivity reform was essential to delivering more homes faster.
“This report exposes why we’re in this housing crisis and the actions we’re taking in response are our pathway to increase supply to the levels Queenslanders deserve,” he said.
“The recommendations back in our procurement overall to create more opportunities for local tradies and small businesses, reduce red tape and deliver better value for Queensland taxpayers.”
Elsewhere in Queensland, Brisbane 2032 has reached a new procurement milestone, recording more than 1,000 Expressions of Interest for its work packages, which launched in October 2025.
The Brisbane Organising Committee for the 2032 Olympic and Paralympic Games said it has seen strong enthusiasm from businesses across Queensland and Australia who are eager to be part of the Games.
