Former South Australia chief justice Chris Kourakis will steer the Royal Commission into the Integrity of Major Public and Civil Infrastructure Construction Projects in Victoria.
Premier Ben Carroll's announcement came 100 days out from the state election and followed a special cabinet meeting on Thursday morning.
"I chose someone independent, rigorous and fearless," Mr Carroll told reporters.
Mr Carroll said there was grift, thuggery, misogyny and violence on taxpayer-funded construction sites, but stopped short of labelling it corruption.
"If there has been corruption, that will be found," the premier said.
Under the terms of reference, Mr Kourakis will investigate the extent to which corruption, criminal conduct or serious misconduct has occurred on or surrounding any major public and civil infrastructure projects.
That includes any such activity undertaken or instigated by the CFMEU, construction companies and consortia, sub-contractors, labour-hire companies, contractors, suppliers or others.
The commission will be able to look into whether Victoria's executive government or delivery authorities adequately followed their roles and responsibilities in the oversight and governance of major construction projects.
After toppling Jacinta Allan as premier on July 28, Mr Carroll flagged he would immediately establish the commission and special prosecutor.
Ms Allan had for months rejected widespread calls to launch a probe into allegations of dodgy dealings within the state's $100 billion infrastructure program, known as the Big Build.
The opposition want her and fellow former premier Daniel Andrews hauled before the commission to give evidence.
Mr Carroll said it would be up to the commissioner to decide if he wanted to hear from serving Labor ministers, former ministers and premiers, and senior officials.
"No one, no person, no organisation (is) off-limits," he said.
In a report into the Victorian arm of the CFMEU, corruption-busting lawyer Geoffrey Watson estimated taxpayers lost $15 billion owing to corruption on state government construction projects.
The premier and deputy Gabrielle Williams both claimed they first became of aware of allegations of criminality on Big Build sites in media reporting from 2024.
"I'm not proud of what has occurred on these sites," he said.
The state Labor government is fast-tracking a bill to the last sitting week of parliament to give Victoria's Independent Broad-based Anti-corruption Commission "follow the money" powers before the election.
The definition of corruption would also be expanded to encompass "grey corruption", which is unethical behaviour by public officials.
A start date for the royal commission will be determined by Commissioner Kourakis, who is moving to Melbourne.
He has been granted a $50 million budget, with a final report due in August 2027.
A special prosecutor to work in tandem with the commission would be chosen once the office was set up in September, Mr Carroll said.
The CFMEU says it will co-operate with the commission but is urging for it to look beyond the rogue union when sniffing out alleged misconduct.
"If this royal commission is serious about uncovering the truth, it must follow the evidence wherever it leads," union administrator Michael Crosby said.
Shadow attorney-general James Newbury labelled the inquiry a "cover-up commission", suggesting it would not get to the bottom of crimes that have been occurring.
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