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A Fresh Start or Another Reset? What Queensland’s Construction Productivity Reforms Mean

Queensland’s construction industry has been handed what the State Government is calling a “fresh start”. After years of frustration around red tape, labour shortages, rising costs and shrinking margins, the Crisafulli Government has committed to sweeping reforms aimed at lifting productivity across the sector. The changes follow a sobering final report from the Queensland Productivity […]

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Thu 22 Jan 26 10:00:00 AM

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Queensland’s construction industry has been handed what the State Government is calling a “fresh start”.

After years of frustration around red tape, labour shortages, rising costs and shrinking margins, the Crisafulli Government has committed to sweeping reforms aimed at lifting productivity across the sector. The changes follow a sobering final report from the Queensland Productivity Commission (QPC), which found construction productivity has fallen nine per cent since 2018, equating to an estimated 77,000 fewer homes delivered.

For builders and trades on the ground, this announcement cuts straight to the heart of a long-running question: will reform finally make it easier to build homes in Queensland, or is this another policy reset that sounds good on paper but struggles in practice?

At The Good Builder, we want to unpack what these reforms actually mean for the people delivering the work and ask our community a simple question: do you think this will help?



A system under strain

The QPC report paints a confronting picture. While productivity across the broader Australian market economy has grown by around 65 per cent over the past 30 years, labour productivity in construction has increased by just five per cent over the same period.

That gap matters. It shows up in build times blowing out, housing supply falling short of demand, and builders being forced to absorb inefficiencies they cannot pass on to clients.

For many builders, this decline does not feel theoretical. It shows up in duplicated paperwork, complex procurement rules, inconsistent safety enforcement, and licensing and training systems that struggle to keep pace with modern construction methods.

The Government’s response acknowledges that reality, describing the sector as having been “strangled by red tape” and calling for what the QPC described as a full “industry reset”.



What is actually changing?

The Government has agreed, or agreed in principle, to 51 of the 64 recommendations in the QPC report. On the surface, many of these align closely with what builders and trades have been calling for over the past decade.

Axing BPICs

One of the most significant moves is the permanent removal of Best Practice Industry Conditions (BPICs) from government procurement. The Government estimates BPICs would have cost Queenslanders $20.6 billion over the next five years.

From a builder’s perspective, BPICs were often seen as adding layers of compliance without delivering proportional improvements in safety or quality. Smaller builders and subcontractors frequently reported being locked out of government work because of the administrative burden alone.

The removal of BPICs could reopen government projects to a broader pool of local builders and trades, but only if replacement procurement frameworks are genuinely simpler and consistently applied.



Procurement and pre-qualification reform

The Government has committed to removing pre-qualification requirements for subcontractors on government construction projects and reducing complexity across procurement processes.

For trades, this is a potentially meaningful shift. Pre-qualification systems have often favoured larger operators with dedicated admin teams, leaving capable smaller subcontractors struggling to compete.

If implemented properly, this reform could improve access to work for local trades and small businesses. If implemented poorly, it risks simply shifting complexity elsewhere.



Health and safety clarity

Few topics generate more frustration on site than inconsistent interpretation of WHS rules.

The reforms promise clearer guidance on health and safety regulation, new mechanisms for dealing with WHS disputes, and a review of right-of-entry provisions. The Government will also review regulator powers alongside the Wood Commission of Inquiry.

For builders, the key test will be whether these changes improve consistency and fairness. Safety is non-negotiable, but uncertainty and conflict slow projects down and erode trust.



Apprentices, training and skills

Labour availability remains one of the biggest constraints on housing delivery.

The Government plans to introduce a less prescriptive, better targeted apprenticeship policy, review existing training courses, and ensure skills for modern construction methods are properly represented.

This matters. Builders are increasingly adopting new materials, prefab elements and digital workflows, yet training systems often lag years behind industry practice.

There is also a renewed focus on streamlining licensing and recognising interstate and overseas qualifications through Automatic Mutual Recognition, particularly for migrants.

For trades, this raises an important balance. Faster recognition may help fill skills gaps, but only if standards are maintained and supervision is adequate.



Political leadership meets industry reality

Treasurer and Minister for Home Ownership David Janetzki has framed the reforms as a whole-of-government response to a decade of declining productivity.

He credited the QPC’s six-month consultation process, which included more than 250 public submissions, dozens of stakeholder meetings and regional visits.

Minister for Housing and Public Works Sam O’Connor was more direct, saying the report “exposes why we’re in this housing crisis” and positioning productivity reform as essential to delivering homes faster.

From a builder’s point of view, strong statements are welcome, but delivery will matter far more than intent.



The builder and trade perspective

If there is one lesson builders have learned over the past decade, it is that reform announcements do not always translate to change on site.

Key questions remain unanswered:

  • Will procurement reform genuinely reduce admin time, or simply change the forms?
  • Will safety reforms improve clarity, or create new layers of oversight?
  • Will apprenticeship changes increase labour supply quickly enough to matter?
  • Will smaller builders and trades actually see more opportunity, or will the system still favour scale?

There is also a cultural question. Productivity is not only about policy. It is shaped by trust between government, builders, trades and regulators.

If reforms are implemented collaboratively, with ongoing industry input, they have a far better chance of success than if they are imposed top-down.



A chance to reset trust

At its core, this reform package represents an opportunity to reset how government and industry work together.

The QPC report was clear: productivity in construction has been sliding for years, and without change, housing supply will continue to fall short of what Queenslanders need.

For builders and trades, this is not about politics. It is about whether the system finally supports the people delivering homes, rather than slowing them down.



The Good Builder question to the industry

We want to hear directly from builders and trades across Queensland and beyond.

Do you believe these reforms will genuinely improve productivity on the ground?

Which changes matter most to your business?

And what would you like government to do next if this “fresh start” is to become a real one?

Join the conversation inside The Good Builder community and share your perspective. If productivity reform is going to work, it will only do so with industry voices front and centre.

TGB Editorial
Author: TGB Editorial

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