The Australian Constructors Association (ACA) welcomes the Queensland Government’s response to the Queensland Productivity Commission’s (QPC) final report, acknowledging it is an important step towards restoring performance across the construction industry.

ACA CEO Jon Davies said the findings confirm what major contractors have been saying for years: declining productivity, poor procurement practices and adversarial industrial relations are driving up costs and delaying delivery.

“The Commission’s acknowledgement of these systemic problems, particularly the weaponisation of health and safety, is significant,” said Mr Davies.

ACA welcomes the Queensland Government’s broader procurement reset, including a stronger focus on value for money, clearer risk allocation and a stated commitment to increased use of standard contracts.

“A genuine focus on value for money has the potential to shift procurement from a race to the bottom on price, to a race to the top where contractors are incentivised to innovate and ultimately save taxpayers money,” said Mr Davies

However, industry experience does not yet align with the Government’s assessment of how effectively standard contracts are being applied.

“While the intent to improve standardisation is acknowledged, the view that current arrangements are already effective does not reflect the experience of many contractors operating in Queensland,” said Mr Davies.

“Significant contract amendments and inappropriate risk transfer remain a major barrier to productivity and participation.”

ACA is also urging the Government to accelerate action on market entry barriers.

“The operation of Minimum Financial Requirements s and Trust accounts is actively discouraging new entrants and competition in the Queensland market,” said Mr Davies.

“The proposed reviews in these areas are welcome, but they need to happen as a matter of urgency if capacity and confidence are to be restored.”

The Government’s acceptance of most of the Commission’s recommendations reflects the scale of the challenge facing the industry and delivery will be critical.

“The challenge now is implementation,” said Mr Davies.

“The permanent removal of Best Practice Industry Conditions is a strong start, but these broader reforms need to be centrally coordinated, transparently tracked and driven with urgency – not left to individual agencies where momentum can be lost and outcomes diluted.

“Other jurisdictions should be looking closely at Queensland’s response. If Australia wants faster infrastructure delivery and better value for money, these issues must be addressed head‑on.”

ACA looks forward to working with the Queensland Government and other industry stakeholders to support the coordinated implementation of the reforms.

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