The productivity of Queensland’s construction sector will go under scrutiny as the state prepares for a boom in activity in the leadup to the Olympics.

The Queensland Government has instructed the newly reinstated Queensland Productivity Commission (QPC) to investigate how to improve the productivity of the state’s building sector.

The inquiry will examine drivers of construction productivity and will make recommendations to improve performance.

The inquiry’s Terms of Reference are broad. They include consideration of current market conditions, key sector trends (input costs, supply chain developments etc.), regulatory and non-regulatory factors which shape productivity (regulation, workforce requirements, procurement etc.) and priority areas for reform.

The inquiry comes as Queensland is gearing up for a construction boom over coming years.

In its latest report, Construction Skills Queensland says that the state’s pipeline of building and engineering construction work will grow from $53 billion in 2024/25 to $77 billion in 2026/27.

Key drivers of long-term activity include ongoing population growth and the associated requirement for housing and infrastructure, a significant pipeline of renewable energy work and work associated with the 2032 Brisbane Olympics.

The extent of challenge is significant.

Over the 20 years to 2044, the state aims to deliver a total of one million new homes – an average of 50,000 per year.

Current annual completion rates sit at below 35,000 homes.

To deliver on the Brisbane 2032 Olympics, the state recently released a $7.1 billion investment program. The involves transport upgrades, construction of eight new venues and upgrades to twelve existing venues.

The inquiry also comes as the Queensland LNP Government has paused the application of Best Practice Industry Conditions (BPIC) on new government funded projects pending of review of their effectiveness and impact.

The BPICs were introduced by the former Labor Government in 2018, and set out pay and conditions for construction union workers on major state projects worth more than $100 million.

Shortly after being elected late last year, however, the new LNP Government announced the pause amid concerns about impacts on of BPIC on productivity and costs.

The inquiry will be the first to be undertaken by the newly reestablished QPC.

The Commission was axed by the former Labor government but has now been reinstated by the current government.

The QPC has six months to produce its report.

 

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