New Building Policy Framework
Suspending Best Practice Industry Conditions (BPICs) on new major projects
The government has temporarily suspended the use of BPICs on all new government-funded construction projects as of 14 November 2024. The suspension also involves the temporary removal of the industrial relations best practice principle in the Queensland Procurement Policy.
We are committed to leading best-in-class procurement to ensure good outcomes, and that Queensland taxpayer money is respected.
What’s included
The suspension applies to:
- all new major projects
- projects that have not reached the procurement stage
- projects in procurement, where future stages have not been finalised, or where there is no approved Enterprise Agreement (or industrial instrument)—on a project-by-project basis.
Opportunities for productivity improvements on existing projects will also be considered on a case-by-case basis.
The BPICs and major project types impacted are:
- Standard Building Construction and Maintenance BPICs—including new building construction and maintenance projects (e.g. Olympic and Paralympic infrastructure, corrective services, health and hospital building projects)
- Transport Civil Construction Projects BPICs—including new transport infrastructure and services projects (e.g. road, rail and water civil construction projects)
- Renewable Energy Facilities and Related Construction Projects BPICs—including new renewable energy and related construction projects.
The Queensland Procurement Policy and the Best practice principles: Quality, safe workplaces guidance have been amended to reflect these changes.
Other related guidance, such as the Queensland Renewable Energy Procurement Policy and the Building Policy Framework will also be amended by the end of 2024.
What’s not affected
Worker safety will not be compromised by the suspension. Best practice principles relating to workplace health and safety systems and standards and best practice commitment to apprentices and trainees will remain.
The BPICs will still apply in projects where they are already applied.
BPICs for the social services sector are not affected by the temporary suspension.
Timeline
Legislation to re-establish the Queensland Productivity Commission (QPC) will be introduced to Queensland Parliament by the end of 2024.
Once re-established, the QPC will start a Queensland building industry review in 2025.
The temporary suspension applies immediately and will continue throughout the review and until the government has responded. The long-term impacts and future of BPICs in Queensland will be informed by the QPC review.
Why suspend the BPICs
A temporary suspension of BPICs will:
- respond to industry concerns of the negative impacts of BPICs on the wider construction sector in Queensland
- contribute to boosting productivity and reducing costs through increased market competition
- provide greater flexibility and unlock market capacity on government projects by allowing a broader pool of sub-contractors to access major government building construction projects
- support regional and remote communities where it is harder to attract the workforce required to deliver major projects.
The temporary suspension will allow sub-contractors—especially small and family businesses and regional firms—a greater chance of securing work on government projects without needing to gain unnecessary prequalification on building construction projects.
More information
Relevant state government agencies will work with affected projects and contractors on what it means for them.
This page will continue to be updated as more information becomes available.
Building Policy Framework
To ensure ongoing sustainability of the building and construction industry in Queensland, the department has developed:
- Building Policy Framework (PDF, 868.88 KB)
- Building Policy Guideline
- Best Practice Industry Conditions (BPICs) (PDF, 2340.72 KB)
- improved methods for prequalifying contractors.
The Building Policy Framework and Building Policy Guideline consolidate, rationalise and replace the four frameworks which previously governed how departments planned, delivered, and maintained government building projects including the:
- Capital Works Management Framework
- Maintenance Management Framework
- Building Asset Performance Framework
- Strategic Asset Management Framework.
Streamlining these four frameworks into one framework and one guideline simplifies and clarifies important requirements for Queensland Government’s building construction and maintenance projects.
The Building Policy Framework incorporates Best Practice Principles (BPP) for major government building construction projects including workplace health and safety systems and standards, commitment to apprentices and trainees, and best practice industrial relations.
The BPICs outline the Queensland Government’s terms and conditions that reflect best practice for major projects.
The Building Policy Guideline, which is authorised by the Building Policy Framework, provides explanations and assistance on applying the framework.
It provides building management practitioners in Queensland Government departments with the scope, risk and processes associated with the Queensland Government Asset Lifecycle Management process.
It also provides direction on managing the risks and issues involved in procuring new government buildings, looking after buildings, and finding ways that buildings can be repurposed or renewed to support service delivery.
The guideline aligns with the key policy requirements that apply to planning, delivering and maintaining government building construction projects.
Implementation
The Building Policy Framework was implemented in phases.
Phase 1 commenced March 2022 and focused on the application of the framework to BPP projects, which include major projects of $100 million or more, or projects declared by a Minister if a lesser value.
Phase 2 commenced July 2023 and included the application of the framework to all building construction and maintenance procurement category projects and programs.
The implementation of the new framework includes a requirement to use the two-stage managing contractor procurement methodology (or two stage variant) and a requirement to prequalify head contractors (including managing contractors) and subcontractors for BPP projects.
Updates have been made to the prequalification (PQC) system for managing contractors and subcontractors wanting to work on BPP projects.
The new Building Policy Guideline applies to all government building construction and maintenance procurement projects.
For building construction projects delivered as Public Private Partnerships, see the Project Assessment Framework.