Queensland Faces Major Construction Reform

Queensland’s construction sector is facing a significant reset after a report from the Queensland Productivity Commission (QPC) found productivity has fallen sharply over the past few years, putting major infrastructure delivery at risk.

Released on the 21^st January 2026, the QPC’s report found construction productivity has dropped by around 9% since 2018, with labour productivity in the sector only growing only 5% over the past 30 years.

What’s changing?

In response, the Crisafulli Government has agreed to 51 of the 64 recommendations made by the commission. The reforms are aimed at reducing red tape, improving competition and lifting workforce capacity.

Key changes include:

• Permanent removal of Best Practice Industry Conditions (BPIC) from government procurement

• Removing pre-qualification requirements for subcontractors, opening the door for more small and regional businesses

• Simplifying procurement processes to reduce administrative burden

• Reviewing workplace health and safety regulation, including dispute mechanisms and right-of-entry provisions

• Boosting apprenticeships through more targeted policies

• Reviewing training pathways to better reflect modern construction methods

• Streamlining licensing and recognising interstate and overseas qualifications to help address skills shortages

Worker safety concerns

Worker safety has emerged as one of the more debated elements of the proposed reforms, particularly following the permanent removal of Best Practice Industry Conditions (BPIC).

BPIC previously set minimum pay and conditions on major government projects, including provisions around working in extreme heat. While the government maintains the changes will reduce cost and complexity, unions and the opposition have warned against any dilution of on-site protections.

The Productivity Commission acknowledged concerns that some workplace health and safety provisions were being used for purposes beyond safety, but it did not recommend lowering safety standards. Instead, it called for clearer guidance, including a specific policy to manage adverse weather events, an area the government has agreed to review.

Skills shortages

Skills shortages remain a major constraint on construction productivity, particularly as housing demand and major infrastructure projects accelerate ahead of the 2032 Olympics.

To address this, the government has committed to more targeted apprenticeship policies, reviewing training pathways, and streamlining licensing for migrants through Automatic Mutual Recognition and other reforms. It is also continuing to push for a higher intake of skilled overseas workers.

The goal is to increase workforce capacity quickly, but the challenge will be ensuring safety, skills and supervision keep pace as the labour pool expands.

The takeaway

Whether these reforms deliver meaningful change will depend on how quickly and effectively they’re implemented. Cutting red tape and opening up procurement could improve competition and help smaller and regional contractors access government work, but those gains will only stick if productivity improvements are matched with strong safety standards on site.

The next few years will be a test of balance: lifting productivity without compromising safety, increasing capacity without overwhelming the system, and delivering projects at a time when demand has rarely been higher.

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Read the full Summary Report from QPC here.

Read the Queensland Government’s official media statement here.