Construction reform priority one as Productivity Commission gets green light

13 March 2025

With the cogs of the re-established Queensland Productivity Commission (QPC) set to move, industry is doubling down on its calls to unlock construction.

Master Builders CEO Paul Bidwell said the green light for the QPC Bill in State Parliament last night offered the promise of much-needed reform for the sector, at a critical point in time.

“As the focus turns to the clean-up following Ex- Tropical Cyclone Alfred across large parts of South East Queensland and northern New South Wales; and as the state’s North and Far North continue to grapple with the impacts of recent severe weather, the true cost and extent of the rebuilding remains to be seen,” Mr Bidwell said.

“These events have occurred against the backdrop of existing challenges including a shortage of skilled labour, meaning it will be difficult to find workers to assist with what’s sure to be a huge recovery and rebuilding effort.

“That makes it more important than ever for us to find ways to work smarter, without compromising safety or build quality.

“The Crisafulli Government has committed to a comprehensive review of the regulation of our industry as the QPC’s first order of business – and there are several clear targets for reform.

“Last month, we applauded Housing Minister Sam O’Connor’s announcement pausing the further rollout of Project Trust Accounts (PTAs), as part of the Building Reg Reno plan.

“We need to go a step further and scrap PTAs. They create unnecessary stress and delay through the mountain of paperwork required, and worse still, they don't protect payments for subcontractors if a company goes bust.

“The QPC gives us an opportunity to find a solution which works for all parts of the contracting chain without adding unnecessary red tape to an already over-regulated industry.”

With Best Practice Industry Conditions (BPICs) already frozen by the Crisafulli Government, Mr Bidwell said industry will urge the QPC to recommend they be removed altogether to boost productivity.

“BPICs hurt productivity and push costs up – and it’s time for them to go and for productivity to be restored on construction sites.

“Critics claim this will lead to workers’ pay and conditions being carved up. But as we know, wages and working conditions are safeguarded by workplace laws and enterprise agreements, safety is ensured by WHS laws and government oversight, and there are systems in place to manage leave.

“Getting productivity right is important as we face a huge pipeline of homes, schools, hospitals, and infrastructure – and we eagerly await the outcome of the 100-day review into the Olympic and Paralympic Games due on 25 March, to learn more about projects ahead of us.

“Queensland is well short of the 50,000 homes we need to build each year to meet demand. It’s time to shake things up – and the Productivity Commission is the chance to do just that.”

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