For the last 12 months, ‘productivity’ has been the word on everyone’s lips, particularly ours at Master Builders – and for good reason. The state of play for our industry demands it.

Let’s review what that looks like.

Over the last ten years, the building and construction sector has been up against it when it comes to ever-changing new and complex regulations, rising construction costs, workforce shortages, and declining productivity.

Today, the disconnect between the number of people entering the building and construction industry and the workload we need to handle it is growing. Construction Skills Queensland’s Horizon 2032 report tells us the shortfall in the number of construction workers needed will persist in the next eight years, intensifying to about 50,000 in 2026-27.

The housing shortage also endures. The latest Queensland figures from the Australian Bureau of Statistics (ABS) show approvals for detached houses remained steady (+0.2 per cent) in the three months to April. However, approvals of new units, townhouses and duplexes took a -2.3 per cent dive over the same period. 37,824 new dwellings were approved in the 12-month period, leaving us chasing down the government target of 50,000 per year.

Not only are approvals lagging, but ABS data shows it now takes an average 10 months to get a new home from approval to completion. That’s three months longer than it did five years ago. This significant delay is stretching budgets and putting more pressure on an already strained housing sector.

It’s time to cut through the red tape. Faster approvals and streamlined processes would mean shorter build times, more affordable new homes, and greater certainty for both builders and buyers.

A bold, coordinated strategy is needed, not just to tackle the housing crisis, but to deliver on the $59 billion construction pipeline for 2025 and set the stage for the 2032 Olympic and Paralympic Games.

The wheels are already in motion. We’ve welcomed the freezing of the Best Practice Industry Conditions (BPIC), the pause on the extended rollout of the Project Trust Account (PTA) regime, and most recently, the extension of the First Home Owner Grant boost along with a cut to stamp duty, helping more Queenslanders get into their first home. We’ve also met with the new leadership at the Queensland Building and Construction Commission (QBCC) to discuss our calls for reform.

Now, as the Queensland Productivity Commission inquiry into the construction sector is underway, we have put forward our preliminary submission.

It recognises that construction is a process of many moving parts, all of which must be working seamlessly together to address the productivity challenge.

Our priority actions include permanently repealing BPIC on state government projects and removing PTAs from the security of payment system altogether.

There is also much room for improvement where the National Construction Code (NCC) 2022 is concerned. We are calling for the energy efficiency and livable housing requirements to be made voluntary, and for a moratorium on new NCC provisions that impede housing affordability. The focus now must be on achieving a strong and practical NCC that has safety, quality, and the process of building at its heart.

Also necessary is the review of the technical detail in the NCC changes. More than 12 months ago the former government committed to review the implementation of NCC 2022. The current government has made the same commitment, but we are still waiting for this review to deliver more workable building regulation.

Continuing our dialogue with the new guard at the QBCC and the government, we’re advocating for a transformation of the regulator, achieved through a balance of immediate operational change, and longer-term strategic and structural reform.

Our other recommendations cover off key issues related to government procurement processes, the introduction of a mandatory Queensland Housing Code, and free access to Australian Standards referenced in the NCC. Funding research to ensure regulation is well-placed to address emerging construction practices, and supporting confidence in Modern Methods of Construction, are also key to working smarter.

Key to addressing the skills shortage is developing an apprentice commencement and retention strategy; offering financial incentives for apprentices upon completing their first year and again at graduation; increasing wage subsidies to help offset the high supervisory costs for businesses; and continuing to support programs that attract and retain women in the sector while supplementing our home-grown workforce with permanent skilled workers.

We value our ongoing engagement with the Productivity Commission as we work towards a shared goal: positioning our state as the leader in efficiency, innovation, and productivity within the construction industry nationwide.

By Paul Bidwell, CEO, Master Builders Queensland