In short
QPP 2026 replaced QPP 2023 on 1 January 2026, consolidating roughly 700 pages of Queensland procurement policy into about 50. It removes BPIC, sets a 30% SME target and gives every unsuccessful tenderer a right to a debrief. The Procurement Assurance Model incentive scheme commences 1 January 2027.
From 700 pages to 50: the policy consolidation explained
QPP 2026 was jointly launched by Treasurer David Janetzki and Minister for Housing and Public Works Sam O’Connor at the Brisbane Convention & Exhibition Centre on 11 November 2025.1 It replaced the QPP 2023, consolidating what the government described as approximately 700 pages of complicated procurement policy into roughly 50 pages of streamlined rules.3 The policy took effect on 1 January 2026, with one exception: the Procurement Assurance Model (PAM) incentive scheme component, which commences on 1 January 2027.4
The policy is structured across five parts: the Queensland Procurement Approach (vision and pillars), Queensland Procurement Rules (mandatory, recommended, and optional requirements), the Procurement Assurance Model, government-owned corporation expectations, and the Reporting Framework.5 This tiered compliance approach gives agencies more flexibility than the prescriptive QPP 2023, reclassifying many formerly mandatory requirements as recommended or optional.4 Streamlined invitation and contract documentation across all six procurement categories must be published by 31 December 2026, with building construction and maintenance templates already updated as of January 2026.6
The five strategic pillars
The five strategic pillars anchoring the policy are: Value for Queensland (delivering taxpayer value with fair, open competition and a new public-facing Procurement Spend Portal); Local Opportunities (prioritising Queensland SMEs, small and family businesses, and regional enterprises); Easy to Do Business (simplified processes, smaller tenders, plain-language documentation); Open to New Ideas (outcome-based specifications, innovation challenges, new technology adoption); and Practical Economic, Environmental and Social Impact (sustainable procurement, diverse supplier base, PAM implementation).5
For a civil construction SME, these pillars translate directly into how your tender response should be framed. Evaluators are now explicitly instructed to assess economic, environmental, and social impact alongside price and technical capability. Every tender response you write for a Queensland Government contract should demonstrate your local workforce, your environmental management approach, your apprentice and trainee commitments, and your supply chain engagement with other Queensland businesses.
The policy was developed through a Procurement Roundtable in early 2025 — described as the first of its kind — bringing together government and industry stakeholders before drafting.1 It was further informed by the Queensland Productivity Commission’s construction productivity inquiry, whose final report was released on 21 January 2026. The government agreed or agreed in-principle to 51 of the QPC’s 64 recommendations, including permanent BPIC removal.7
What QPP 2026 actually changed
Five changes matter to a civil SME. The rest of this guide takes them in turn.
| Change | Detail | What it means for civil SMEs |
|---|---|---|
| Policy consolidation | Roughly 700 pages reduced to about 50 | Fewer and clearer rules to comply with |
| BPIC removed | Permanently removed. It had applied to government-funded construction projects valued at $100 million or more | Ends the cascading Best Practice Principles prequalification pressure down the subcontract chain |
| 30% SME target | A defined share of Queensland procurement spend directed to SMEs | More addressable work for smaller contractors |
| Mandatory debriefs | A new right for every unsuccessful tenderer | A reliable feedback loop after every loss |
| Commencement | In force 1 January 2026 | The Procurement Assurance Model incentive scheme commences 1 January 2027 |
BPIC removal: ending a multi-billion dollar productivity drag
The permanent removal of Best Practice Industry Conditions represents the policy’s most consequential change for civil construction. BPIC was a framework introduced in 2018 under the Palaszczuk Labor Government, embedding specific industrial relations and employment conditions into government-funded construction projects valued at $100 million or more.8 Requirements included automatic double-time pay for working in rain, mandatory tools-down when temperatures reached 35°C (or 29°C at 75% humidity), a $100 weekly mobile phone allowance, annual 5% nominal pay rises, and classification and wage rates that significantly exceeded existing enterprise agreements.9
The framework was cascading — head contractors were required to use best endeavours to ensure subcontractors and sub-subcontractors met equivalent conditions, effectively mandating BPP (Best Practice Principles) prequalification down the supply chain.8 For many civil construction SMEs, this meant that working on government projects above $100 million required navigating an additional layer of prequalification that smaller firms found onerous and expensive.
The suspension and permanent removal
The Crisafulli Government first suspended BPIC on 14 November 2024, approximately one month after winning the state election, with Deputy Premier Jarrod Bleijie announcing the pause on all new government-funded major construction projects.10 QPP 2026 made the removal permanent from 1 January 2026.1
The cost evidence
The cost evidence against BPIC was substantial. Queensland Treasury modelling estimated BPIC increased project costs by up to 25%.10 The QPC’s interim report calculated that retaining BPIC to 2029–30 would impose an aggregate net cost to the community of $5.7 billion to $20.6 billion, result in 26,500 fewer homes being built, and push rents 8.3% higher.11 Independent analysis commissioned by the Queensland Major Contractors Association found cost increases of 15–30% per project.12
Construction sector productivity had fallen 9% since BPIC’s introduction in 2018, translating to 77,000 fewer homes built in Queensland.11 A concrete example: the Hospital Capacity Expansion Program blew out from $9.785 billion to $16 billion, with BPIC identified as a contributing factor.13
What this means for subcontractors
For subcontractors, the removal eliminates the BPP prequalification requirement that previously limited which firms could work on projects over $100 million. Deputy Premier Bleijie stated the change would give sub-contractors, especially small and family businesses and regional firms, a greater chance of securing work on government projects.10 The Ethical Supplier Threshold — which required prescriptive declarations as a precondition to doing business with government — was also abolished, replaced by the lighter-touch Procurement Assurance Model.4
One critical caveat: BPIC conditions are already embedded in existing enterprise agreements that typically run until approximately 2027. Real cost savings will materialise when new agreements are negotiated.14 Enterprise Legal also emphasises that the removal shifts responsibility for industrial and delivery risk management back onto contractors, who must now proactively manage these risks rather than relying on a government-mandated framework.9
The 30% SME target and how it actually works
QPP 2026 mandates that Queensland Government agencies collectively source 30% of procurement spend by value from Queensland SMEs, defined as businesses employing fewer than 200 people. This target was originally established at 25% from 1 July 2020, then increased to 30% by 30 June 2022.15 QPP 2026 retains and reinforces the 30% target with concrete enforcement mechanisms that go well beyond aspirational goal-setting.
Purposeful public procurement: the new evaluation criterion
The most powerful enforcement tool is the purposeful public procurement evaluation criterion, which replaced the former Local Benefits Test.16 For significant procurements — defined as high-value and/or high-risk, with agency thresholds no lower than $500,000 including GST — government buyers must apply a purposeful public procurement evaluation criterion carrying a total weighting of between 10% and 20% of the evaluation.16 Within this, buyers select 2 to 4 specific purposeful public procurement outcomes, each weighted between 5% and 10%.16
This criterion evaluates how a supplier’s response contributes to broader economic, environmental, social, and governance outcomes. For a civil construction SME, this means your tender response should quantify and demonstrate your local employment, your use of local subcontractors and suppliers, your apprentice and trainee hours, your environmental management practices, and any social enterprise or Indigenous business engagement.
For routine procurement (lower value, lower risk), buyers must invite at least one local supplier, small and family business, or Queensland regional business to respond to every quote or tender, unless impractical — with documented reasons required for any exception.5
Direct engagement thresholds: a game-changer for smaller firms
QPP 2026 introduces generous direct engagement thresholds for diverse suppliers. SMEs, Aboriginal and Torres Strait Islander enterprises, and social enterprises can receive contracts up to $500,000 for goods and services and up to $8.5 million for construction without a competitive process.17 Innovation challenge winners can also be engaged directly up to $500,000 within three years of their challenge success. The general exemption threshold for all suppliers sits at $50,000.5
Set-aside procurements — where contracts are reserved exclusively for specified business types such as SMEs or Indigenous enterprises — provide another pathway, with only eligible businesses invited to quote or tender.5 Additional participation targets complement the SME threshold: at least 3% of annual procurement spend must go to Aboriginal and Torres Strait Islander enterprises, with an Australian-first focus on increasing spend with veteran-owned businesses, female-led businesses, and those supporting people with disability.1
Mandatory debriefs: a new right for every unsuccessful tenderer
QPP 2026 introduces a mandatory requirement for government buyers to offer debriefs to all suppliers who submit tenders.18 This is a significant shift from previous practice where debriefing was discretionary. Debriefs must provide constructive feedback on the supplier’s offer, with the level of feedback aligned to the level of information requested from the supplier during the tender process.18
For civil construction SMEs, this provision creates a structured learning loop — particularly valuable for firms new to government work who previously received no feedback on unsuccessful bids and had no way to systematically improve. Many civil contractors who have adopted a disciplined approach to requesting and acting on debrief feedback report improving their win rate from roughly one in six or seven to one in four within 12 months.
When you receive a debrief, treat it as a strategic investment. Ask specific questions: What score did we receive on each criterion? Where did the winning tenderer outperform us? What would have strengthened our methodology statement? Were there compliance issues? Document every debrief systematically and use the insights to refine your tender library and response templates before your next submission.
Simplified contracts and lower barriers to entry
The contract simplification agenda extends beyond document reduction. The new Queensland Government Supplier Code of Conduct 2026 replaces the 2023 version, with a notable escalation: breach of the SCC 2026 now constitutes a breach of contract itself.4 The code requires managing conflicts of interest, safeguarding information, offering subcontractors payment terms no less favourable than government terms, embedding workplace health and safety, zero-tolerance for domestic and family violence, and addressing modern slavery. New mandatory cyber security clauses have been added to all contracts.4
Template documentation is being progressively released by category lead agencies. The Department of Housing and Public Works leads Building, Construction & Maintenance (templates already updated as of January 2026) and General Goods & Services. The Department of Transport and Main Roads handles Transport Infrastructure & Services.6 Two procurement categories — Medical Goods and Services, and Transport Infrastructure and Services — still lacked templates as of early 2026 and were expected to receive them under the December 2026 deadline.6
The policy also introduces just-in-time information requests during evaluation, rather than front-loading extensive documentation requirements that previously deterred smaller firms from even starting a tender submission.19 This practical change, combined with smaller tender packages and plain-language documentation, directly addresses the complexity barrier that industry bodies had long identified as the primary obstacle to SME participation.
A $116.8 billion infrastructure pipeline feeds through QPP 2026
The scale of opportunity for civil construction SMEs is staggering. Queensland’s capital program totals $116.8 billion over the four years to 2028–29, with the 2025–26 annual capital program alone worth $29.3 billion and estimated to directly support 73,000 jobs.2 Approximately 69% of budgeted capital expenditure in 2025–26 is directed to regional projects. The transport portfolio accounts for $9.259 billion in 2025–26, with the Queensland Transport and Roads Investment Program (QTRIP) allocating $41.7 billion over four years.20
Brisbane 2032 Olympics: venue procurement is ramping up
The Brisbane 2032 Olympics venue program adds a distinct infrastructure layer, with a total funding envelope of $7.1 billion delivering 17 new and upgraded venues through the Games Independent Infrastructure and Coordination Authority (GIICA).21 The centrepiece Brisbane Stadium at Victoria Park is estimated at approximately $3.785 billion — a 63,000-seat venue for Opening and Closing Ceremonies and Athletics.22
In December 2025, the delivery partner consortium Unite32 — led by Laing O’Rourke and AECOM — was appointed from 250 expressions of interest and 48 specific bids.23 Unite32 will progressively release subcontract packages, creating a cascade of opportunities for civil construction firms. However, as of early 2026, 11 of 17 venues were still in detailed business case processes, meaning the procurement pipeline for venue work will thicken throughout 2026 and beyond.24
Major civil infrastructure projects
Major civil infrastructure projects flowing through QPP 2026 include Cross River Rail (total cost: $19.041 billion, 10.2 km new rail line with 5.9 km twin tunnels and four new underground stations, first passenger services expected 2029);25 Logan and Gold Coast Faster Rail ($5.7–5.75 billion, doubling tracks from Kuraby to Beenleigh);26 The Wave Sunshine Coast Rail (Stage 1 estimate: $5.5–7 billion, heavy rail from Beerwah to Caloundra);27 and the Coomera Connector ($2.16 billion, 45 km transport corridor).28 Bruce Highway upgrades total over $9 billion.20
Where to find upcoming opportunities
Contractors can access upcoming opportunities through multiple platforms. The Queensland Government Forward Procurement Pipeline provides an interactive dashboard of upcoming opportunities across all agencies — QPP 2026 commits to improving the quality and timeliness of this data.29 The Queensland Government Infrastructure Pipeline (QGIP) provides both a delivery pipeline (4-year commitments) and a planning pipeline (proposals under assessment).30 QTenders handles public tenders, while GIICA operates its own procurement portal for Olympics-related opportunities.21 Transport projects are listed through QTRIP Online.20
Industry reaction: positive but cautious on execution
Industry reaction to QPP 2026 has been overwhelmingly positive, tempered by practical caution about execution. QMCA CEO Andrew Chapman called the BPIC removal a restoration of balance and stability to the industry, while cautioning that infrastructure construction costs have increased by more than 30% in three years and that without targeted workforce development and better project packaging, even well-funded initiatives face delay risk.12
Master Builders Queensland CEO Paul Bidwell was unequivocal in support, noting that $2 billion over two years had been earmarked in Labor’s 2024 budget to cover government project cost blowouts under BPIC.14 Australian Constructors Association CEO Jon Davies praised the simplification but reframed the ambition, noting that procurement should be a race to the top rather than a race to the bottom.14 Business Chamber Queensland CEO Heidi Cooper welcomed the SME focus and red tape reduction.14
The most significant implementation concern, flagged by multiple analysts, is the timeline gap. BPIC conditions are already embedded in existing enterprise agreements running until approximately 2027, meaning real cost savings will only materialise when new agreements are negotiated.9 And the workforce shortfall — Construction Skills Queensland estimates an average shortfall of 18,200 workers over the next eight years — means that even perfectly designed procurement rules cannot solve the sector’s capacity constraints alone.12
Five steps to align your tender strategy with QPP 2026
QPP 2026 is not just a policy document — it is a roadmap for how your next tender response should be structured. Here are five immediate actions every civil construction SME in Queensland should take.
1. Update your capability statement to emphasise QPP 2026 alignment. Your capability statement should now explicitly reference your SME status (fewer than 200 employees), your Queensland base of operations, your local workforce percentages, and your track record of engaging local subcontractors and suppliers. These are no longer nice-to-haves — they carry 10–20% of evaluation weighting on significant procurements.
2. Build a purposeful public procurement response library. Create template content addressing each of the purposeful public procurement outcomes: economic impact (local jobs, supply chain), environmental impact (waste reduction, emissions, sustainability practices), social impact (apprentices, trainees, Indigenous engagement, disability employment), and governance (ethical supply chains, modern slavery, cyber security). Having this content pre-prepared means you can tailor it to each tender rather than writing from scratch.
3. Register on all relevant procurement portals. At minimum, register on QTenders, the Forward Procurement Pipeline dashboard, and the GIICA procurement portal. Set up saved searches for civil construction categories. Monitor the QTRIP Online tool for transport infrastructure opportunities from the Department of Transport and Main Roads.
4. Request a debrief after every unsuccessful tender. Under QPP 2026, this is now your right for every formal tender submission. Develop a standard debrief request template that asks specific questions about your scoring on each criterion, areas where the winning tenderer outperformed you, and what would have strengthened your response. Systematically track debrief insights and feed them back into your tender library.
5. Review your prequalification status. With BPIC and BPP prequalification removed, confirm that your existing prequalification — whether Austroads NPS through TMR, PQC for building work, or the Construction Supplier Register — is current and at the appropriate level for the contracts you are targeting. If you have been avoiding government work because of the BPIC compliance burden, now is the time to re-enter the market.
The window is open — but it will not stay open forever
QPP 2026 represents a genuine structural reset rather than incremental adjustment. The combination of BPIC removal, BPP prequalification elimination, direct engagement thresholds of $8.5 million for construction SMEs, and mandatory purposeful public procurement weighting creates a framework materially more accessible to mid-tier and regional civil construction firms than anything Queensland has had in the past decade.
The timing is pivotal. With $116.8 billion in capital works rolling out over four years, 17 Olympic venues entering procurement, and Unite32 progressively releasing subcontract packages throughout 2026, the volume of civil construction opportunities flowing through QPP 2026 will be historically unprecedented.
Three factors will determine whether the policy delivers on its promise. First, whether enterprise agreement renegotiations in 2027 genuinely depart from embedded BPIC conditions or simply replicate them under different labels. Second, whether agencies implement the spirit of simplification or merely layer new administrative interpretations onto the 50-page framework. And third, whether the workforce shortfall can be addressed quickly enough to absorb the pipeline. The policy creates the conditions for a more competitive, accessible procurement market. Converting those conditions into actual project wins requires civil construction SMEs to act now.
Stop waiting for the perfect tender. Start positioning your business for the biggest procurement opportunity Queensland has ever created.
References
This guide is general information for Australian civil construction businesses and is not legal or procurement advice. The Queensland Procurement Policy, its local-content requirements and the thresholds within it are set by government and subject to amendment. Always work from the current policy and the conditions of tendering for your specific opportunity.
1. Queensland Government Ministerial Media Statement, “Biggest procurement shake-up in decades backs Queensland businesses in $35 billion spend,” 11 November 2025. https://statements.qld.gov.au/statements/103905
2. Queensland Budget 2025–26, Capital Statement, Budget Paper No. 3. https://budget.qld.gov.au/files/Budget-2025-26-BP3-Budget-Capital-Statement.pdf
3. Queensland Government, Queensland Procurement Policy 2026 Overview. https://www.forgov.qld.gov.au/finance-procurement-and-travel/procurement/procurement-resources/procurement-policies-and-frameworks/queensland-procurement-policy-2026
4. MinterEllison, “Queensland Procurement Policy 2026: What you need to know,” 2026. https://www.minterellison.com/articles/queensland-procurement-policy-2026-what-you-need-to-know
5. Queensland Government, Queensland Procurement Policy 2026 (full policy PDF), effective 1 January 2026. https://www.forgov.qld.gov.au/__data/assets/pdf_file/0030/643197/qld-gov-procurement-policy-2026-accessible.pdf
6. Ashurst, “Preparing for the refreshed Queensland Procurement Policy 2026,” 12 January 2026. https://www.ashurst.com/en/insights/preparing-for-the-refreshed-queensland-procurement-policy-2026/
7. Queensland Productivity Commission, “Construction Productivity Inquiry,” Final Report, January 2026. https://qpc.qld.gov.au/content/inquiries/construction-productivity.html
8. Gadens, “Queensland’s ‘best practice principles’ for major projects.” https://www.gadens.com/legal-insights/queenslands-best-practice-principles-for-major-projects/
9. Enterprise Legal, “Queensland Procurement Reset: BPIC removed – what it means for the construction sector.” https://enterpriselegal.com.au/queensland-procurement-reset-bpic-removed-what-it-means-for-the-construction-sector
10. Queensland Government Ministerial Media Statement, “Construction productivity boosted with BPIC pause,” 14 November 2024. https://statements.qld.gov.au/statements/101618
11. Queensland Productivity Commission, Interim Report — Opportunities to improve productivity of the construction industry, August 2025. https://www.qpc.qld.gov.au/docs/construction-productivity/Interim%20Report%20-%20Opportunities%20to%20improve%20productivity%20of%20the%20construction%20industry.pdf
12. Queensland Major Contractors Association, “Queensland Budget Delivers Infrastructure Momentum, But Risks Remain.” https://qmca.com.au/queensland-budget-delivers-infrastructure-momentum-but-risks-remain/
13. Queensland Government Ministerial Media Statement, “Crisafulli Government to save hospital plan.” https://statements.qld.gov.au/statements/101786
14. The Urban Developer, “Industry Welcomes Axing of Qld’s Contentious BPIC,” November 2025. https://www.theurbandeveloper.com/articles/queensland-government-best-practice-industry-conditions-scrapped
15. Queensland Government, Small and Medium Enterprise Procurement Target Guide. https://www.forgov.qld.gov.au/__data/assets/pdf_file/0024/188106/Small-medium-procurement-target-guide.pdf
16. Business Queensland, “Supporting purposeful public procurement.” https://www.business.qld.gov.au/running-business/marketing-sales/tendering/supply-queensland-government/supplier-guide/supporting-purposeful-public-procurement
17. McCullough Robertson Lawyers, “The Queensland Government Procurement Policy 2026 is here,” 3 March 2026. https://mccullough.com.au/2026/03/03/queensland-government-procurement-policy-2026/
18. Queensland Government, “Debriefing a supplier.” https://www.forgov.qld.gov.au/finance-procurement-and-travel/procurement/procurement-resources/debriefing-a-supplier
19. BidWrite, “Queensland Procurement Policy: Four Nuggets from the QPP 2026 Update.” https://www.bidwrite.com.au/insights/queensland-procurement-policy-four-nuggets-from-the-qpp-2026-update/
20. Queensland Government Ministerial Media Statement, “Budget to help transform transport and connect Queensland for the future.” https://statements.qld.gov.au/statements/102881
21. Games Independent Infrastructure and Coordination Authority (GIICA), “Delivering 17 venues for the Brisbane 2032 Games.” https://giica.au/
22. GIICA, Brisbane Stadium. https://giica.au/venues/brisbane-stadium
23. The Urban Developer, “Builder Consortium Revealed for 2032 Brisbane Olympics,” December 2025. https://www.theurbandeveloper.com/articles/queensland-brisbane-olympics-paralympics-2032-biuilder-consortium-laing-orourke-aecom
24. Queensland Audit Office, “Major projects 2025.” https://www.qao.qld.gov.au/reports-resources/reports-parliament/major-projects-2025
25. Cross River Rail, “About the Project.” https://crossriverrail.qld.gov.au/about/project-overview/
26. Department of Transport and Main Roads, Logan and Gold Coast Faster Rail. https://www.tmr.qld.gov.au/projects/programs/logan-and-gold-coast-faster-rail
27. Department of Transport and Main Roads, The Wave – Stages 1 and 2 (Rail). https://www.yoursay-projects.tmr.qld.gov.au/thewaverail
28. Department of Transport and Main Roads, Coomera Connector. https://www.tmr.qld.gov.au/projects/programs/coomera-connector
29. Queensland Government, Forward Procurement Pipeline. https://qtenders.epw.qld.gov.au/fpp/
30. Queensland Government, Queensland Government Infrastructure Pipeline. https://www.statedevelopment.qld.gov.au/infrastructure/projects-and-programs/queensland-government-infrastructure-pipeline