5.4 The uncompromising direction of the legislation before the Senate involves the prohibition of project contracts. This issue is controversial because the project agreements have been used with considerable success in the construction of the Sydney Olympics. They are generally supported by large construction companies that are major contractors. Obtaining a project agreement is a challenge for management and a high-level indicator of success if the process is successful, as the financial benefits to the participants in the agreement are considerable. The government`s opposition to this aspect of leadership can only be explained if it is accepted that it is contrary to the canon that agreements must be reached with individual groups or small groups of workers in the workplace on the same site. Any deviation involving a staggered succession of contractors and contractors (as required by the nature of the project) is unacceptable, regardless of the resulting management inefficiencies. Subcontractors of a given project should be able to become parties to the multi-transaction project agreement. Such extended multi-operational project agreements should be able to be registered in the interests of the speed and effectiveness of the various AIRC commissioners.  5.66 The resource sector is also concerned about the negative impact of the bill on major resource projects, which depend to a large extent on the pre-agreements of s170LL.
 A former AirC member, Mr. J.O`Connor, notes that the impratibility of project agreements under Clause 68 will have serious consequences for the future of mining projects in Western Australia. They all have common project agreements. It should be noted that they have been successful in reducing labour disputes.  5.9 After the establishment of Cole`s royal commission to uncover evidence of its policy of eliminating model negotiations, the government, armed with the conclusions it had been waiting for, repeated in its presentation to the committee the recommendations it had received, albeit without some of the rhetorical flowers. Cole had argued that enterprise agreements were being undermined and that one form of centralized wage fixing was now being replaced by another, which would stifle initiative and deny creativity. The manner in which this was manifested was not clarified, but the result was seen as detrimental to the industry and those who worked there.  It was through DEWR that they did not attempt to respond to this argument.
The DEWR opinion argues that standard negotiations are one of the main causes of excessive costs and illegal activities in the construction industry. It argues that construction workers refuse the flexibility they might otherwise have to reach satisfactory agreements through enterprise negotiations.