Changes to Queensland Procurement Policy – Proposed Supplier Demerit Scheme

On behalf of our members, QMCA recently lodged a submission to The Department of Housing and Public Works in relation to a proposed Supplier Demerit Scheme planned to be introduced as part of the expanded Queensland Procurement Policy (QPP).

Since the changes announced to the QPP in May 2018, QMCA has made numerous representations to Queensland Government in relation to the Policy and raised concerns in respect of:

1. Potential conflict with other legislation
2. Lack of transparency of the assessment process
3. Application of the QPP to the entire supply chain
4. Retrospectivity of the changes
5. Sanctions for non-compliance with the QPP

Whilst regrettably these issues have not been addressed, the Department has sought feedback from QMCA and other Associations in relation to the introduction of a Supplier Demerit Points Scheme – designed to penalise contractors for non-compliance with the enhanced QPP.

In response, QMCA has raised a number of significant concerns with the draft scheme tabled by the Department, including that:

1. It may result in a reduction in safety incident reporting and consequently an increase in safety incidents.
2. It could reduce Queensland’s competitiveness.
3. The assessment of non-compliance has the potential to be highly subjective and could be used to favour particular suppliers.
4. The operation of the scheme could significantly increase tension between contractors, subcontractors, unions and the Government.

QMCA fully endorses the Government’s focus on improved opportunities for Queenslanders/social enterprises, workplace safety, training and harmonious industrial relations but we believe that the Government would be better placed to achieve improvement in these areas through positive incentivisation measures and increased collaboration with industry rather than through increased rules, regulations and penalties.

QMCA remains committed to working with Queensland Government to ensure that the construction industry has the skills, resources and capabilities necessary to deliver the major projects that our State needs to grow and ensure economic prosperity.

Last week, QMCA President Peter Anusas and QMCA CEO Jon Davies met with Minister De Brenni and members of his Department to discuss QMCA concerns with the proposed Supplier Demerit Point Scheme.

We will continue to engage with Government on behalf of our members and in the interest of the State.