The Queensland Major Contractors Association (QMCA) has welcomed the Queensland Government’s 2025–26 Budget as a decisive investment in the state’s infrastructure future, but has cautioned that continued focus is needed on productivity to ensure that the pipeline can be delivered with cost and time certainty.
QMCA CEO Andrew Chapman said the government’s record $116.8 billion infrastructure commitment over four years, including $41.7 billion for transport, represents a strong signal of confidence in Queensland’s ability to deliver nation-leading projects.
“This is the kind of long-term, high-impact investment the civil construction sector has been calling for. It supports jobs, communities, and the infrastructure that will serve Queensland well beyond the 2032 Olympics,” Mr Chapman said.
BPIC Abolishment Supports Industry Competitiveness
QMCA also welcomed the decision in November 2024 to abolish the Best Practice Industry Conditions (BPIC) framework on government-funded projects—something the association has long argued was inflating costs and limiting competition.
“The removal of BPIC is a win for fairer procurement and improved productivity. This decision restores competitiveness, fosters innovation, and will enable more Tier 2 and regional contractors to bid for public infrastructure,” Mr Chapman said.
Cautious Optimism Amid Cost and Workforce Challenges
Despite the positive investment outlook, QMCA warned that systemic challenges persist across the construction sector, including steep cost escalation, labour shortages, and delivery constraints.
“Infrastructure construction costs have increased by more than 30% in just three years. Without targeted workforce development and better packaging of projects, even well-funded initiatives face the risk of delay or underperformance. This is where productivity improvements and new initiatives can help address these workforce challenges, as well as targeted training and development.” Mr Chapman said.
Strong Support for GIICA and the New Infrastructure Delivery Model
QMCA applauded the ongoing support for the Games Independent Infrastructure Construction Authority (GIICA) and the announcement of a dedicated delivery partner to oversee the rollout of Queensland’s major projects.
This marks a welcome shift toward a more efficient and accountable delivery model for the Games’ infrastructure delivery, one that QMCA has consistently championed. By streamlining governance, avoiding duplication, and improving project clarity, the government is taking real steps to improve certainty for contractors and ensure timely, cost-effective delivery. The investment of $300 million into GIICA and toward the delivery partner model over the next four years will ensure that we can plan, procure, and manage the delivery of the infrastructure needed for the 2032 Brisbane Games and beyond.
Olympic Village Investment Will Deliver Long-Term Housing and Urban Legacy
The Association also highlighted the importance of the investment in Olympic Games Athletes’ Villages, which will be repurposed into permanent residential precincts post-2032. QMCA views this as a once-in-a-generation opportunity to advance urban development and social infrastructure in South East Queensland.
“We are delighted to see a strong focus on legacy value and the inclusion of private enterprise in delivery. The villages must be more than temporary accommodation—they should become vibrant, integrated communities that address housing availability and urban liveability for years to come,” Mr Chapman said.
Health Investment a Welcome Commitment to Community Infrastructure
QMCA welcomed the Budget’s commitment to new hospitals, regional health upgrades, and sustaining capital works designed to modernise health facilities across the state. This investment will strengthen health networks across the state and ensure infrastructure keeps pace with growing demand.
For the construction sector, this presents consistent opportunities for work in regional centres and SEQ, supporting the broader role of civil and building contractors in delivering critical social infrastructure that underpins both public well-being and economic resilience.
Energy Infrastructure Investment Supports Transition and Regional Growth
QMCA strongly endorsed the government’s investment in next-generation energy infrastructure, including the Brigalow gas Peaker project, ongoing investigations and development of new pumped hydro storage projects, high voltage transmission lines, including $ 2 billion+ over 4 years for CopperString, and expanded battery storage systems.
These initiatives will help Queensland meet its renewable energy targets while maintaining energy reliability and affordability. The Brigalow gas project provides essential dispatchable power, while the $435 million investment in three proposed pumped hydro projects across the state will enhance grid stability and enable greater uptake of renewables.
“The Electricity Maintenance Guarantee with $1.6b of sustaining capital investment at the existing major power stations, coupled with investments in gas peaking plants, CopperString and utility-scale BESS development and pumped hydro across the state, will stimulate further project development in the energy sector. The industry is hopeful that co-investment models can help deliver this infrastructure, and much more, as part of the energy transition, noting that the Energy Roadmap will be completed by the end of this year.” Mr Chapman said.
QMCA Stands Ready to Partner
QMCA reaffirmed its commitment to working in partnership with the Queensland Government to deliver world-class infrastructure that meets the needs of a growing and dynamic state.
“The Budget outlines an ambitious, exciting future for Queensland infrastructure. As the voice of the state’s major engineering contractors, QMCA will continue to champion innovation, capacity-building, and procurement reform to make this vision a reality.”
“This budget is realistic in its focus and investment into economic infrastructure for the future of Queensland and is welcomed,” Mr Chapman said.
