What is the Prequalification (PQC) System?

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 (QPP) and removal of the requirement for subcontractors to be prequalified.

We are committed to leading best-in-class procurement to ensure good outcomes, and that Queensland taxpayer money is respected.

Changes to PQC

The temporary suspension of BPICs for Best Practice Principle (BPP) prequalification means that:

• managing contractors need to be prequalified to work on BPP building construction projects but BPICs will no longer be applied
• and
• subcontractors do not need to be prequalified to work on new or existing BPP building construction projects.

What's included

The suspension of BPICs applies to all new major projects and projects that have not reached the procurement stage and projects in procurement, where future stages have not been finalised, or where there is no approved Enterprise Agreement (or industrial instrument).

The Queensland Procurement Policy (QPP 2023) and the Best practice principles: Quality, safe workplaces guidance have been amended to reflect these changes.

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 continue on projects where they are already applied unless opportunities for productivity improvements on existing projects arise on a case-by-case basis.

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.

The Building Policy Framework will be amended by the end of 2024.

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 prequalification for BPP building construction projects.

The PQC System

The PQC System is Queensland's whole-of-government register of prequalified building consultants and contractors.

Government departments use the register to identify prequalified suppliers suitable to deliver projects based on the project size, type and location as well as the supplier's licence and capabilities.

Who needs to prequalify

Contractors

All building contractors who are directly contracted on government building projects must be prequalified if a project is valued at more than $1 million.

Key trade or specialist contractors (such as electrical, air conditioning and refrigeration, demolition and asbestos removal, security systems, and fire protection) can be registered in the PQC System and must be prequalified if work exceeds $1 million.

Consultants

All building consultants who are directly commissioned on government building projects must be prequalified if the commission fee either:

• exceeds $60,000
• is less than $60,000 (where the service risk rating is 3 or 4).

The following consultant types can be registered in the PQC System where the appropriate licence or registration is held by the applicant or a direct employee of the applicant:

• building project managers
• building design consultants including registered architects
• registered engineers (civil, electrical, environmental, mechanical, structural) and QBCC-licensed designers
• landscape architects
• quantity surveyors
• site classifiers
• consulting surveyors
• building certifiers.

Managing contractors for BPP projects

Managing contractors directly engaged by the state who want to work on BPP projects need to be prequalified.

A BPP building project is valued over $100 million or is a declared BPP project of a lesser value.

Under the QPP 2023, BPPs include:

• best practice workplace health and safety (WHS) systems and standards
• best practice commitment to apprentices and trainees.

How to apply

You need to submit an application online.

Before you begin your application, read the eligibility and application requirements for:

• building contractors (including head contractors for BPP projects)
• building consultants.

Your application needs to show that you are an ethical supplier with appropriate experience and qualifications.

All prequalified suppliers have to demonstrate how they contribute to government priorities supporting:

• local businesses and diverse business sizes
• mental health and suicide prevention
• women in construction.

After you prequalify

A prequalified building contractor or consultant is eligible to tender for suitable government building projects through QTenders.

Before a prequalified building contractor is awarded a contract, they will undergo a financial assessment.

When a prequalified supplier works on a Queensland Government building project they must 'demonstrate that they deliver' (performance reporting) on agreed time, cost, quality and scope outcomes as well as contractual, legislative and regulatory requirements including:

• communication, environmental management and subcontractor management
• compliance with industrial relations and workplace health and safety requirements, the Building and Construction Training Policy and the Queensland Charter for Local Content.

If a supplier does not meet the expected standards the review and sanctions process may be used to downgrade, suspend or cancel a suppliers prequalification status.

Registering for minor works or service maintenance contracts

If you don't meet the PQC requirements, or if you're a contractor, consultant or supplier interested in minor works or service maintenance contracts with the Queensland Government through QBuild, you can register your details with QBuild.