The establishment of an inquiry into rising construction costs has stalled as Canberra and the Victorian government feud over who will head the panel.
Mirvac chairman James MacKenzie has reportedly been nominated by Labor to head a three-member panel to examine escalating construction costs and report by July next year.
Prime Minister Julia Gillard last week accused Victorian Premier Ted Baillieu of holding up the inquiry by failing to provide feedback to the commonwealth.
Mr Baillieu said on Monday the panel must be independent.
"It was agreed that the panel would comprise independent and eminent people, and we stand by that," he told reporters.
Mr Baillieu said Victoria had clearly expressed its views to the commonwealth and would agree to a panel that was consistent with the Council of Australian Governments' (COAG) decision earlier this year.
"It's up to the prime minister to get on with it," he said.
"If she doesn't want to undertake the construction costs inquiry, that's a matter for her.
"It would seem the prime minister is doing absolutely everything possible to avoid having an inquiry into construction costs," he said.
At its meeting in July COAG agreed to establish an independent review panel to conduct a broad ranging investigation into cost, competitiveness and productivity challenges in the commercial, civil and large scale residential construction industry.
The next COAG meeting is set for December 7.