Construction Productivity – ACA QLD/NT response
ACA QLD/NT has submitted a series of twenty-four recommendations to the Queensland Productivity Commission’s inquiry into improving construction sector efficiency. The inquiry was established to address critical challenges facing Queensland’s construction industry.
KEY DRIVERS FOR THE INQUIRY
Construction productivity growth has been weak over the past three decades compared to the broader economy. The industry faces significant pressure from rising input costs, increasing insolvencies, and labour/material supply constraints following the pandemic. In addition, Queensland has an acute housing shortage, with vacancy rates around 1% in major centres. The current state government aims to deliver one million new dwellings by 2044 (approximately 50,000 per year), but recent completions have been below 35,000 annually. There are also major infrastructure demands, including the Brisbane 2032 Olympics projects.
THE INQUIRY IS EXAMINING:
- Current housing market conditions and construction sector performance
- Productivity barriers including government regulations, industrial relations, procurement policies, and labour force issues
- Opportunities for regulatory and policy reform to improve productivity without compromising quality and safety
- Barriers to entry, investment and innovation in the sector
- Impact of government regulations on small and medium subcontractors, particularly in regional areas
- Skills development and labour supply matching.
For more information on the inquiry process, see the Queensland Productivity Commission website.
ACA RECOMMENDATIONS
The ACA QLD/NT Committee developed a list of 24 specific, actionable recommendations that the government can implement directly.
Procurement
1.1 Amend QPP to require a two-stage EOI/shortlist for design tenders.
1.2 Publish a Professional Services Fee Guidance Note annually.
1.3 Ensure architects are involved in developing design and technical briefs for all major projects.
Contracts & Risk
2.1 Mandate un-amended AS 4122 and cap consultant liability on state projects.
2.2 Establish a standing Contracts Advisory Panel by Q4 2025.
2.3 Offer the Government PI backstop for cladding/high-risk facades until the commercial market stabilises.
2.4 Mandate Alternative Dispute Resolution (ADR) first – mediation before litigation.
Workforce & Skills
3.1 Fund 200 architectural cadetships over 3 years.
3.2 Provide $5m per year for Construction Digital Skills grants.
3.3 Tie state contracts > $5m to a wellbeing charter and certified CPD plans.
3.4 Develop diversity targets – scholarships for women, First Nations and regional students.
4. Technology & Innovation
4.1 Launch a $20m “Construction AI Challenge” fund.
4.2 Require IFC-BIM deliverables on new state projects from 1 January 2027.
4.3 Partner with CSIRO to create an open construction data platform.
4.4 Provide $25k SME tech vouchers for small firms to adopt AI/BIM tools.
5. Regulatory Reform
5.1 Implement one-stop digital planning lodgement with statutory decision times.
5.2 Maintain building code standards but provide 12-month transition windows.
5.3 Fast-track mutual recognition for skilled interstate/overseas professionals.
5.4 Fund QBCC random audits and create a public register of non-conforming products.
6. Safety & Quality
6.1 Legislate Principal Architect sign-off for Class 2-9 buildings > 4 storeys.
6.2 Fund 20 independent Clerks-of-Works through a QBCC register.
6.3 Enforce mandatory building manuals and digital handover on completion.
6.4 Mandate non-combustible facades on Class 2 buildings > 3 storeys. Doing it right once is cheaper than re-cladding 400 buildings.
IN CONCLUSION
Productivity gains will come from better systems, not harder labour. By adopting these reforms, Queensland can:
- Deliver projects more efficiently and cost-effectively without sacrificing quality.
- Strengthen the professional capability of the entire supply chain.
- Protect the public through robust safety and risk governance.
- Position Queensland as a national leader in construction innovation.
The ACA QLD/NT branch stands ready to assist the Commission and Government in turning these recommendations into action.