Construcciones Yamaro: Time to rethink construction in Queensland
The Australian Constructors Association urges Queensland to tackle declining construction productivity through smarter planning, fairer procurement and greater collaboration.
By Jon Davies, CEO of the Australian Constructors Association.
By any measure, Queensland is poised to take off. With the 2032 Olympic and Paralympic Games fast approaching and an energy transition just getting started, the state is preparing to deliver some of the most significant infrastructure projects in its history. But if we want this investment to deliver more than just infrastructure – if we want it to leave a lasting legacy of better outcomes for taxpayers, communities and workers – we must change how we build.
Right now, the biggest challenge facing Queensland’s construction industry is poor productivity. Despite record levels of construction activity, productivity in the sector has declined over the past 30 years. That’s not just a construction issue – it’s a national economic concern. If we don’t turn things around, Australians will be working longer hours for less reward. Our ability to meet growing demand for housing, transport, hospitals and other vital infrastructure will suffer.
The root of the problem isn’t a lack of effort or expertise – it’s that the system drives the wrong behaviours. Projects are still too often awarded based on the lowest upfront price rather than long-term value. This short-term thinking discourages innovation, undermines trust between government and industry, and results in cost blowouts and delays that nobody wants.
There is a better way. When government and industry work together with shared goals, we can unlock smarter, more efficient ways of building. That means getting serious about aligning project planning and procurement to reward value, not just cost. It means creating space for innovation and it means strengthening collaboration, not just ticking boxes.
That’s why the Queensland Productivity Commission’s current inquiry into construction productivity is important. It provides an opportunity for the Queensland Government to lead the nation in showing what’s possible when government and industry work together.
In the Australian Constructors Association’s submission, we identified practical steps the government can take now to lift productivity and deliver better outcomes. Many are easy to implement and high-impact – these are the low-hanging fruit.
Key recommendations include:
1. Bring clarity and coordination to the project pipeline – the industry needs a clear and consistent view of what’s coming. A single agency should be responsible for managing and regularly updating a statewide infrastructure pipeline, with guidelines for public announcements to avoid confusion and speculation.
2. Streamline procurement to reward performance, not just price – too often, procurement focuses on short-term savings. We need guidelines that involve industry early in project planning, reduce unnecessary red tape, and make it easier for agencies to evaluate and reward innovative, high-value bids. Tender documents should only include information that can be relied upon, and agencies should provide proper feedback to bidders.
3. Embrace collaborative contracts and fairer risk allocation – contractors cannot reasonably price risks they don’t control or can’t be quantified. That’s why Queensland should adopt more collaborative models that fairly share risk and support joint problem-solving.
4. Standardise and simplify – standard contracts and consistent procurement policies across government would reduce duplication. This would allow everyone to focus on delivery rather than navigating a new process for every project.
5. Fix industrial relations to support productivity – Queensland should move away from adversarial models that hinder productivity. Abolishing the Building and Construction Industry Code (BPIC), adopting the Culture Standard for public projects, and reviewing how health and safety rules are enforced will all help shift the focus back to getting the job done safely and efficiently.
6. Create a more competitive commercial environment – red tape around minimum financial requirements and the need for trust accounts should be reviewed. If the rules are doing more harm than good, they should go.
7. Use data and digital tools to build smarter – every infrastructure project should identify the key data it will collect across its lifecycle. Queensland should also adopt a ‘digital-by-default’ approach to project planning and delivery.
Related stories:
- Construction leaders call for procurement reform at FF25
- NCIF blueprint aims to lift standards across construction
- NAWIC celebrates construction excellence in Queensland
These reforms don’t just benefit the construction industry; they benefit everyone in Queensland. Better productivity means infrastructure delivered faster, cheaper and to a higher standard. It means more jobs, stronger local businesses and communities that get the services they need, when they need them.
The time for change is now. The Olympic deadlines create urgency – and opportunity. If Queensland leads the way, other states will follow. The construction industry can finally shift from being seen as a problem to recognised as a key partner in building Australia’s future.
We urge the Queensland Government to seize this opportunity and work with industry to deliver a step-change in how we build. Let’s turn the current crisis in productivity into a shared success story – one where everyone benefits.
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