Revealed: Union apartments blow out $600k take 65 weeks longer to build

A new report has laid bare the true impact of union worker conditions on apartment construction costs.

• Inside story: CFMEU’s explosive rise

The state government’s controversial BPIC policy will stifle construction of affordable housing, with new analysis revealing how similar conditions in the private sector are spiking costs and blowing out build timelines by more than a year.

A report by the Queensland Economic Advocacy Solution has shed light on the impact that the militant construction union’s Enterprise Bargaining Agreement (EBA) conditions have on high-density apartment projects in Queensland.

It revealed those Construction, Forestry and Maritime Employees Union (CFMEU) EBA builds take up to 65 weeks longer and add $140,000-$600,000 to apartments.

Brisbane skyline across the river.

The report warned lost days resulting in higher construction costs would lead to reduced apartment stock and increased prices for home ownership in Queensland.

CFMEU EBA practices. including prohibition on overtime and weekend work, inflexible start times and CFMEU protests organised alongside public holiday periods had substantial impacts on productivity, with at least 96 work days lost in 2023.

Under the Best Practice Industry Conditions (BPIC) policy, builders are required to adopt the CFMEU EBA conditions on state projects worth more than $100m.

Master Builders Queensland chief executive Paul Bidwell said the findings reflected conditions felt by both private and public sector builders and renewed calls for BPIC negotiations between construction industry heads, the state government and the CFMEU.

“BPIC has flow-on effects to unit developments under the private sector because the trades engaged by builders expect similar conditions whether it’s a BPIC project or not,” Mr Bidwell said.

Master Builders QLD chief executive officer Paul Bidwell.

“There are many examples where in our view, unions have applied BPIC provisions resulting in delays, and unnecessary cost hikes.

“The outcome we hope to achieve would be agreement by all parties that BPIC will be applied reasonably and the QEAS report quantifies what happens if this doesn’t happen.”

The report said a 10-storey apartment building with two basement floors would cost $61m under non-EBA conditions, but $81m under the CFMEU EBA. A 25-floor building with three basement floors from $143m to $190m. A one-bedroom apartment would cost$143,000 to build, and four-bedroom would blow out by $570,000.

Housing Minister Meaghan Scanlon announcing the Townsville Youth Foyer providing homes for vulnerable young people. Picture: Shae Beplate.

While the report explicitly said it was not a criticism of the CFMEU, it set out to demonstrate the economic repercussions of the union conditions to the Queensland government.

Mr Bidwell said Master Builders would push for BPIC negotiations that allow builders to voluntarily work on Saturdays or early mornings to make up for lost time after CFMEU rallies or public holidays, the ability for workers to choose to work on RDOs and for construction to continue on individual sections of worksites during bad weather when safe to do so.

Housing Minister Meaghan Scanlon said she would be happy to meet with industry and unions, but backed the BPIC working conditions as a means to retain workers.

“Our government ensures safe, secure and well-paid jobs for Queensland workers on government projects,” she said.

“Good working conditions are critical to attract and retain quality tradies to deliver our Big Build, including infrastructure projects like transport and roads, and renewable energy projects,” Ms Scanlon said.

Originally published as Revealed: Union apartments blow out $600k take 65 weeks longer to build