Suspending BPICs on new major projects

The government has temporarily suspended the use of Best Practice Industry Conditions (BPICs) on all new government-funded construction projects as of November 2024. The suspension also involves the temporary removal of the industrial relations best practice principle in the Queensland Procurement Policy.

We are committed to leading best-in-class procurement to ensure good outcomes, and that Queensland taxpayer money is respected.

What’s included

The suspension applies to:

• all new major projects
• projects that have not reached the procurement stage
• projects in procurement, where future stages have not been finalised, or where there is no approved Enterprise Agreement (or industrial instrument)—on a project-by-project basis.

Opportunities for productivity improvements on existing projects will also be considered on a case-by-case basis.

The BPICs and major project types impacted are:

• Standard Building Construction and Maintenance BPICs—including new building construction and maintenance projects (e.g. Olympic and Paralympic infrastructure, corrective services, health and hospital building projects)
• Transport Civil Construction Projects BPICs—including new transport infrastructure and services projects (e.g. road, rail and water civil construction projects)
• Renewable Energy Facilities and Related Construction Projects BPICs—including new renewable energy and related construction projects.

The Queensland Procurement Policy and the Best practice principles: Quality, safe workplaces guidance have been amended to reflect these changes.

Other related guidance, such as the Queensland Renewable Energy Procurement Policy and the Building Policy Framework will also be amended by the end of 2024.

What’s not affected

Worker safety will not be compromised by the suspension. Best practice principles relating to workplace health and safety systems and standards and best practice commitment to apprentices and trainees will remain.

The BPICs will still apply in projects where they are already applied.

BPICs for the social services sector are not affected by the temporary suspension.

Timeline

Legislation to re-establish the Queensland Productivity Commission (QPC) will be introduced to Queensland Parliament by the end of 2024.

Once re-established, the QPC will start a Queensland building industry review in 2025.

The temporary suspension applies immediately and will continue throughout the review and until the government has responded. The long-term impacts and future of BPICs in Queensland will be informed by the QPC review.

Why suspend the BPICs

A temporary suspension of BPICs will:

• respond to industry concerns of the negative impacts of BPICs on the wider construction sector in Queensland
• contribute to boosting productivity and reducing costs through increased market competition
• provide greater flexibility and unlock market capacity on government projects by allowing a broader pool of sub-contractors to access major government building construction projects
• support regional and remote communities where it is harder to attract the workforce required to deliver major projects.

The temporary suspension will allow sub-contractors—especially small and family businesses and regional firms—a greater chance of securing work on government projects without needing to gain unnecessary prequalification on building construction projects.

Relevant state government agencies will work with affected projects and contractors on what it means for them.