Queensland Scraps BPIC in Major Procurement Shake-Up

The Queensland Government has permanently scrapped Best Practice Industry Conditions as part of a sweeping overhaul of public sector procurement, a move it says will reduce red tape and improve productivity across the state’s construction sector.

The policy, known as Best Practice Industry Conditions, applied to government construction projects valued at more than $100 million and recommended standards for wages, employment conditions and industrial relations.

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It also imposed pre-qualification requirements on contractors and subcontractors seeking to work on major public projects.

Critics argued that the conditions narrowed the pool of available contractors and increased project costs. The state government previously estimated that the policy could push costs up by as much as 25 per cent and contribute to a net economic cost of up to $17.1 billion.

The decision to remove the policy was announced alongside the introduction of the Queensland Procurement Policy 2026. The revised framework reduces procurement guidelines from a 700 page document to around 50 pages, with the previous BPIC agreement accounting for 269 pages of the former system.

According to the government, the streamlined approach aims to make public sector procurement more accessible while supporting a broader range of suppliers. The policy includes a target that 30 per cent of procurement spending will involve small and medium Queensland businesses, with additional focus on veteran owned companies, female led businesses and organisations that support people with disability.

The policy also includes a commitment that at least three per cent of annual procurement spending will be directed toward Indigenous businesses.

The changes follow an interim report from the Queensland Productivity Commission, which examined productivity in both residential and non-residential construction. The report found that retaining BPIC until the 2029 to 2030 financial year could add $20.6 billion in costs and potentially result in 26,500 fewer homes being built.

Industry groups have broadly welcomed the reforms. Australian Constructors Association chief executive Jon Davies said the simplified framework demonstrated a stronger focus on value in public spending.

“For too long procurement has been a race to the bottom. By focusing on genuine value we can turn that into a race to the top,” Davies said.

Master Builders Queensland chief executive Paul Bidwell also supported the decision, describing BPIC as a legacy of the former state government. He said removing the policy would help address cost pressures and support the delivery of much needed housing and infrastructure across Queensland.

Images via The Urban Developer

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