Following through on its election commitment, the Queensland Government will introduce legislation to re-establish the Queensland Productivity Commission (QPC) by the end of 2024, with its first order of business upon establishment in 2025 being a review of the Queensland building industry.
As a result on 14 November 2024, the Queensland Government announced the temporary suspension of the BPICs on new government-funded infrastructure projects while the QPC review is underway. Read the media release here. This change presents new opportunities for suppliers looking to work on Queensland Government projects.
The best practice industrial relations principle, which enabled the BPICs, has been temporarily removed as part of the abovementioned suspension, from the Queensland Procurement Policy (QPP) pending the delivery of the QPC’s report, and government response.
This change is not retrospective and BPICs applied before this change are still in force via the established contracts. The other Best Practice Principles (BPPs) related to workplace health and safety systems and standards and commitment to apprentices and trainees are not suspended.
Key changes to be aware of:
The suspension of BPICs, including the temporary removal of the industrial relations best practice principle in the QPP, applies to all:
- all new government construction projects
- projects that have not reached the procurement stage and
- projects in procurement, with future stages not yet finalised, or do not have an approved Enterprise Agreement (or industrial instrument), on a project-by-project basis, and to the extent the suspension is feasible from a commercial, tender, and industrial relations perspective.
While this represents a significant shift in requirements, it is important to note that workplace health and safety standards and apprenticeship requirements remain in place.
Your business should be aware of:
- The immediate suspension of BPICs requirements on new:
- Building Construction and Maintenance (BCM) projects which include Olympic and Paralympic infrastructure, health and hospital building projects
- Transport and Infrastructure Services (TIS) projects which include road, rail and water civil construction projects
- Renewable Energy and related construction projects.
The temporary suspension of BPICs means that:
- Managing Contractors need to be prequalified to work on BPP major projects but BPICs will no longer be applied; and
- Subcontractors do not need to be prequalified to work on new or existing BPP major projects.
Best practice workplace health and safety systems and standards and best practice commitment to apprentices and trainees will continue to remain in force. There is the potential for more streamlined procurement processes and opportunities to tender for government contracts.
While BPICs are suspended, successful suppliers will continue to demonstrate strong project management capabilities, robust safety systems and standards, commitment to training and development, and cost-effective delivery methods.
Looking ahead:
The Queensland Government has outlined a clear pathway forward to review the building industry in Queensland which the QPC to be stood up as soon as possible following the passing of legislation.
The BPICs temporary suspension will be reviewed following the government’s response to the QPC’s inquiry. As these changes take effect, suppliers should:
- monitor QTenders or visit www.supply.qld.gov.au for new opportunities
- continue to apply the active best practice principles regarding workplace health and safety systems and standards; and commitment to apprentices and trainees
- prepare for potential participation in the upcoming building industry review by the QPC
- consider how their business can contribute to the sector’s productivity goals
A final decision on the permanent status of BPICs will be made based on the QPC inquiry findings and the government’s subsequent response.
Agency representatives will be in contact with directly affected suppliers. For more information refer to the www.qld.gov.au/suspendingBPICs page.
Visit the QTenders website or visit www.supply.qld.gov.au for information about current tender opportunities.
We welcome your feedback:
Is there something you’d like to see in a future edition of our newsletter?
Please let us know by emailing betterprocurement@epw.qld.gov.au.