Best Practice Industry Conditions temporary suspension—Frequently asked questions

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 temporary suspension applies to sets of BPICs including new:

• Building Construction and Maintenance projects which include health and hospital building projects
• Transport Infrastructure and Services projects which include road, rail and water civil construction projects
• Renewable Energy and related construction projects.

The BPICs for social services apply to social services contracting arrangements and delivery. They are separate to the BPICs for projects valued at $100 million or more (or declared) and not included in the temporary suspension of BPICs.

There will be a return to when there was no BPIC in place. Contractors will manage industrial relations in accordance with the Fair Work Act 2009 (Cth), other industrial relations legislation, and any industrial instruments relevant to the project.

The Best Practice Principles for workplace health and safety systems and standards and for apprentices and trainees will continue to remain in force and apply to projects of $100 million or more (or declared projects). The Queensland Procurement Policy and the Best Practice Principles, Quality, Safe Workplaces guidance have been updated to reflect this position.

The Best Practice commitments to workplace health and safety systems and standards and apprentices and trainees remain in effect. Construction worker safety schemes and training schemes for new apprentices and workers are supported by other legislation and government programs which also remain in place, such as the Work Health and Safety Act 2011 and the Queensland Government Building and Construction Training Policy.

No, the best endeavours requirement, that sub-contractors provide their staff with BPIC conditions, rates and allowances, was included in the temporary suspension of BPICs.

There is no automatic cancellation of projects because of this decision.

Agencies can apply suspensions to procurement processes currently underway. This will occur on a project-by-project basis. Refer to the agency contact officer for the project, for the procurement for details.

Most projects in delivery where the BPIC applies will continue through to completion with no change. The government will honour existing contracts and work with industry to help deliver projects on time and on budget.

Contractors can also explore productivity improvements that stem from the suspension and submit these to the relevant department for consideration.

Changes to in-term Enterprise Agreements (that govern workers terms and conditions) can only be made with the approval of the Federal Fair Work Commission. Most projects in delivery where the BPICs apply will continue through to completion with no change. There is no government decision to undo those EAs.

The Government’s decision regarding the temporary suspension of the BPICs and IR Best Practice Principle applies to contracts signed on or after 14 November 2024.

Queensland Government Procurement Compliance will continue with its scheduled program for all projects on foot that are subject to contract provisions prior to 14 November 2024.

For contracts signed on or after 14 November 2024, or any contracts retrospectively amended by agreement to exclude BPICs and the IR BPP, BPICs would not be audited.

The Ethical Supplier Threshold remains in place and reflects minimum legal requirements. These will remain the subject of compliance assessments.

The Queensland Government will honour all existing contracts. If an existing major project contractor identifies opportunities to improve productivity, the government will work collaboratively to explore these options.

For example, large-scale transport projects often involve multiple stages delivered by different contractors. While some packages may have been awarded under BPIC, subsequent packages can be considered on a case-by-case basis without the application of BPICs.

There are not anticipated to be any changes to your existing conditions if you are a construction worker who is working on a BPP project in delivery.

Contractors have legal obligations to pay under EAs. Changes to in-term EAs (that govern workers’ terms and conditions) can only be made with the approval of the Federal Fair Work Commission. There is no Government decision to undo those EAs.

The Queensland Productivity Commission will undertake a review of the construction industry. It will prepare recommendations for Government’s consideration. The Queensland Government will consider the report and respond to the recommendations.

The temporary suspension of BPICs for BPP prequalification means that prequalification requirements for sub-contractors no longer apply. However, managing contractors will still need to be prequalified to work on BPP building construction projects but BPICs will no longer be applied. Sub-contractors do not need to be prequalified to work on new or existing BPP building construction projects.

For projects that have already received quotes or are still in the tendering process, the relevant department administering the project will assess each case individually and, at their discretion, may or may not use BPICs to reach contractual close.

Projects that have been awarded are legally bound and must be honoured. However, managing contractors could explore productivity improvements and advise where these are possible.

Application to multistage contracts would be on a case-by-case basis with consideration of commercial and industrial relations aspects.

Unions continue to play a role in the building sector. Their specific involvement in government sites and tender processes will depend on various factors, including relevant legislation, industrial agreements, and government policies. It is important to engage in consultation with relevant industry bodies and legal experts for the most accurate and up-to-date information.

The Government does not want to do business with unethical suppliers who don’t comply with their legal and ethical obligations. The Queensland Government Supplier Code of Conduct sets out the expectations that government has of businesses that want to sell their goods or services to the government, and outlines what constitutes a responsible supplier.

In instances where BPIC terms and requirements have been written into contracts or EAs, contractors have legal obligations to pay under the relevant EAs. These EAs are governed by the Australian Government through the Fair Work Commission and Fair Work Ombudsman. There are mechanisms under the Federal Fair Work Commission jurisdiction to change EAs, and contractors will need to take their own legal advice.

It is essential to comply with legal obligations under the Fair Work Act and any relevant EAs. This means that subcontractors must adhere to the minimum wage and conditions outlined in these agreements, and that specific requirements for subcontractor pricing may vary depending on the project contract and terms.

Where construction contracts have been awarded but delivery is yet to commence and EAs have not been finalised, contractors can explore productivity improvements that stem from the suspension and submit these to the relevant department for consideration. Departments are not involved in the EA negotiation process.

The Queensland Government will continue to use existing reference groups in construction and transport to engage with industry regarding the implications of the BPICs suspension and impacts.

The BPICs—and their specific prequalification requirements—will no longer apply. Subcontractors for building construction projects do not need to be prequalified to work on new or existing BPP projects.

Prequalification requirements for contractors ($1M - <$100M) and managing contractors (over $100m) are still retained. Relevant contractors are being asked to keep their information up to date in PQC during this transition period.

The standard prequalification head contracts already include provisions for scenarios where pre-qualified subcontractors are unavailable. Contracts would not need to be renegotiated to accommodate this situation.

Yes, prequalification for subcontractors is no longer required to tender on BCM BPP projects. This has been communicated to the relevant managing contractors.

Any consideration to remove BPICs from existing/live projects will be managed by a strict set of criteria and on a case-by-case basis in the best interest of commercial feasibility and productivity improvements.

The government’s decision to temporarily suspend the application of the BPICs does not impact, un-do or undermine already existing and legally binding contracts and EAs.

Yes, the BCM Industry Reference Group and BCM Category Council meetings are important and will continue to be held quarterly.

BPICs are suspended from being used on new major projects. Suspension can also apply to projects already within the procurement stage where future stages have not been finalised, or where there is no approved EA (or industrial instrument).

TMR is applying the suspension to all projects still being tendered. This is being done on a case–by-case basis that considers the unique circumstances of each process underway. The departmental contact officer listed on the tender should be contacted for details.

The temporary suspension of BPICs means that the prequalification requirements for principal contractors in transport infrastructure projects will still apply, but without the Industrial Relations BPP, best endeavours and BPIC requirement.