A new report has found that construction productivity in Queensland by 9% since 2018, leading to 77,000 fewer homes being built.
The Queensland Productivity Commission (QPC) Construction Inquiry report found that Best Practice Industry Conditions (BPIC) could inflict an up to A$20.6 billion hit on the community and increase project costs by up to 25%.
“Last year we also took immediate action by suspending BPIC – the CFMEU tax, which caused worksites to be shut down for nearly a third of the year,” Deputy Premier and Minister for Industrial Relations, Jarrod Bleijie, said.
Treasurer David Janestzki validates the Queensland government's decision to suspend BPICs on new government-funded projects, after the report found they were adding to the cost of major projects and holding up construction.
“This initial modelling confirms the concerns raised by the industry about poor productivity within the construction sector,” Treasurer Janetzki said.
“These early signs justify the Crisafulli Government’s re-establishment of the QPC and its initial Construction Inquiry, which is examining conditions in the construction sector and identifying ways to improve the industry and boost productivity.”
The commission said it wanted to know about BPIC, including if workplace safety outcomes are better on BPIC sites compared to non-BPIC sites.
"Removing BPICs alone is unlikely to be sufficient to shift construction productivity to a growth path or improve behaviours on government construction sites," the report says.
"Given that BPIC-like conditions now seem to be embedded in industry practice, including in enterprise bargaining agreements that are not due to be re-negotiated until mid-2027, it is likely that a broader industry reset is required."
Blejie said it is important to restore productivity in the Queensland construction industry to ensure projects can be delivered on time and on budget.
“We want Queensland construction workers to have safe working conditions and be paid competitively, but safe worksites can also be productive,” he said.
The interim report also found that labour productivity was only up 5% from 1994-95, compared to the growth in the market economy of 65% within the same period.
The final report will be provided to the Government in October following further research and stakeholder submissions.
