31 July 2025
A landmark report has confirmed what Queensland’s building and construction industry has known all along – productivity is being undermined by outdated and restrictive laws and policies, including Best Practice Industry Conditions (BPIC).
The Queensland Productivity Commission (QPC) Interim Report into Construction Productivity proposes four key areas for reform for the state to meet its housing and infrastructure needs.
Master Builders has advocated tirelessly for many years on the barriers to construction productivity in Queensland, with representatives across the state having had a seat at the table during the QPC’s extensive consultation for the report.
CEO Paul Bidwell said the findings vindicate industry on its calls – and provide a critical path forward.
“The QPC report states that construction industry productivity has declined by around 9 per cent since 2018 – and we need to claw back that same amount today and more if we are to generate the level of output needed to deliver the construction that Queensland needs,” Mr Bidwell said.
“The decline is attributed to growing regulatory burdens, and sub-optimal procurement practices – and reaffirms what we have been saying all along. BPIC, the unnecessary changes to National Construction Code (NCC) 2022, and red tape such as Project Trust Accounts, are costing industry and Queenslanders time and money we can’t afford. We need to scrap any measures that don’t deliver a clear net benefit to the community.”
The QPC recommends reforming government procurement, including the removal of BPIC.
“It needs to be acknowledged that the former Labor government unashamedly endorsed its BPIC policy. If you wanted to be part of Queensland’s infrastructure program, you had to commit to those terms and conditions – and this report spells out the price our industry and our state have paid for that,” Mr Bidwell said.
“It shows that if BPIC remains in place until 2029-30, project costs will blow out by up to 25 per cent, up to 26,500 fewer homes will be built, rents will soar, and taxpayers will be slugged up to $20.6 billion. The Crisafulli Government has frozen BPIC: this bolsters our case for it to be scrapped altogether.”
The report also recommends improving the regulation of building activity, specifically the NCC, financial regulations (security of payment and Minimum Financial Requirements), modern methods of construction, and the operation of workplace health and safety (WHS) regulation.
“The QPC has recommended that the changes to the livable housing and energy efficiency requirements in NCC 2022 be made voluntary until the net benefit can be demonstrated. Our own up-to-date research indicates they add between $22,000 and $44,000 to the build cost of a home,” Mr Bidwell said.
“They found that the Project Trust Accounts rollout should remain on pause subject to a regulatory impact assessment. We are confident that that any assessment will show that that they need to go altogether. The requirements add stress, unnecessary paperwork and cost builders time and money without any corresponding improvement in security of payment.
“The report also confirms, ‘sites can still be safe and productive.’ Its recommendations are in line with our calls for reforms to Queensland’s WHS laws to prevent the misuse of powers by some union Health and Safety Representatives.
“And it is supportive of modern methods of construction. We must make it easier for manufacturers of prefabricated and modular construction to meet NCC requirements and speed up housing delivery.
“The report backs our calls for a Queensland Housing Code with design and siting rules that are generally consistent statewide for detached houses, secondary and small attached dwellings, and improving the performance of the QBCC.
“It also acknowledges the critical shortage of people to build our homes, community infrastructure and 2032 Games projects. The CFMEU Commission of Inquiry and the ongoing work of the Administrator are key to making our industry safer and more productive, along with financial support for the small businesses training the next generation of workers.”
The QPC found that had productivity remained on track, 77,000 extra dwellings could have been built in Queensland since 2018.
“Figures released by the Australian Bureau of Statistics today show 37,924 new homes were approved across Queensland in the 12 months to June. While that’s trending upward, we are still well short of the government target of 50,000 homes per year – so slashing the red tape slowing down new builds is crucial,” Mr Bidwell said.
Master Builders will make a further submission to the QPC ahead of its final report on 24 October.
“This report is a turning point. Let’s seize the opportunity to build a more productive, affordable, and sustainable future for Queensland,” Mr Bidwell said.
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