Queensland Procurement Reset: BPIC removed – what it means for the construction sector
From 1 January 2026, the Queensland Government permanently removed Best Practice Industry Conditions (BPIC) from the Queensland Procurement Policy.
For the construction industry, this is not a minor administrative amendment. It represents a deliberate shift in how government-funded projects will approach industrial relations, contractor participation and project delivery risk. It is one tool that the Government is using to address the declining productivity in the construction sector.
What was BPIC?
BPIC operated as a procurement-linked framework that embedded certain industrial and employment conditions (e.g. site allowances and conditions) into major government construction projects. For example, BPIC included an automatic requirement to pay an employee double time when it rains.
How will this impact the construction sector?
The removal of BPIC is widely supported as a step in the right direction to address the productivity issues within the construction sector.
We anticipate that this will result in broader tender participation. Mid-tier and regional contractors who previously avoided BPIC projects due to the high compliance requirements may now participate more actively in government tenders. For head contractors, this can allow more competitive subcontractor markets, particularly in regional projects where capacity is already constrained.
Where risk remains
The removal of BPIC changes the procurement landscape, but it also shifts responsibility back onto principals and contractors to manage industrial and delivery risk themselves.
It is important to remember that the removal of BPIC does not change industrial relations law. In many cases, BPIC-aligned conditions are already embedded in enterprise bargaining agreements and must continue to be complied with.
Our View
This policy shift presents a genuine opportunity for employers and principals but only if it is matched with disciplined contract drafting and proactive industrial management.
Our construction and employment teams are currently assisting clients to update tender schedules, special conditions and subcontract templates to address the industrial and delivery risk gaps that may exist now that BPIC has been removed.
If your organisation is bidding on or commissioning Queensland government projects under the new procurement regime, please contact our construction team for a targeted tender and contract review before your next tender submission.
The policy landscape has changed. Your contract settings should change with it.
