The Queensland Major Contractors Association (QMCA) has commended the Queensland Government’s decision to suspend the application of the contentious Best Practice Industrial Conditions (BPIC) policy, which has been a major concern for the construction and infrastructure sector, subject to review by the Productivity Commission.
QMCA CEO Andrew Chapman expressed strong support for this move, noting the detrimental impact the policy has had since its inception.
“Since its introduction, we have consistently argued that BPIC was a poorly framed, CFMEU-driven pattern industrial agreement that directly altered the free-market forces, leading to escalated costs, reduced productivity, and hindered the ability of industry players to collaborate effectively with their workforce and representatives to deliver projects efficiently,” Chapman said.
Chapman emphasised that the policy represented an unnecessary intrusion into employer-employee industrial relations, with government overreach dictating wages and working conditions beyond market realities. “BPIC did not improve safety, failed to enhance industry culture, and merely consolidated power for select unions at the expense of broader industry collaboration,” he added.
Independent analysis commissioned by the QMCA revealed that the BPIC policy increased project costs by 15-30%, with wage increases accounting for 30% of these cost hikes and productivity losses making up the remaining 70%.
“According to the 2024 Queensland Major Projects Pipeline Report, there is $50.2 billion worth of publicly funded projects earmarked for delivery over the next 5 years to which BPIC would have applied. For our state and finances, BPIC’s impact is staggering at $8.85 billion in additional and unnecessary costs, or around $1.8 billion per year, a bill that the taxpayer would be required to pick up,” Chapman stated.
“The long-term consequences of this policy have threatened value-for-money outcomes and industry sustainability. With business cases no longer stacking up under BPIC, it will drive private investment away from the state at a time that we desperately need it. We are pleased to see the new state government listening to industry concerns, acting to restore balance, and enabling construction contractors to collaborate effectively with their employees and representatives. This will ensure safer, more productive worksites and deliver taxpayer value,” Chapman said.
Chapman warned of the potential consequences if such changes were not implemented.
“Without the approach announced today by the Deputy Premier, we risk failing to deliver essential health, energy transition, and transport infrastructure projects, including key facilities for the Brisbane 2032 Games,” he cautioned.
The QMCA highlighted the stark impacts of BPIC, including:
- 70 fewer km of road works delivered over a 5-year period
- 50+ km of less rail delivered for the community over a 5-year period.
- A potential loss of 4GW in renewable power generation capacity over a 5-year period
- Water projects costing 22% more than necessary
Chapman also cited specific project examples, such as the Kangaroo Point Green Bridge, which faced 60% planned productivity rates, a 57% budget overrun, and delays exceeding a year due in a large part to BPIC related conditions. “This clearly illustrates the detrimental impact of this policy on project delivery and cost,” he noted.
Looking forward, Chapman stressed the need to effectively manage BPIC’s legacy on existing projects. “QMCA is ready to collaborate with the government and relevant stakeholders to navigate these challenges and create solutions that provide cost and time certainty for ongoing projects and value for money for Queenslanders,” he concluded.
