Victorian Premier Ben Carroll released the terms of reference for the royal commission on Thursday, tasked with investigating corruption and serious misconduct.
Former South Australian Chief Justice Christopher Kourakis will head the inquiry, a sensible appointment, according to Centre for Public Integrity director Geoffrey Watson.
"Chris Kourakis was an inspired choice," he told AAP.
Mr Watson's explosive Rotting from the Top inquiry report, exposed exploitation of Victoria's "Big Build" by the CFMEU, in collaboration with some of Melbourne's most notorious underworld figures.
He estimated the alleged corrupt conduct by the CFMEU and Mick Gatto, a self-styled construction industry "mediator", had effectively fleeced Victorian taxpayers of $15 billion.
"I'm really relieved that this has occurred, and I congratulate Premier Carroll on doing it," Mr Watson said on Thursday.
Unveiling the details of the inquiry on Thursday, 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.
Thursday's steps made clear to Mr Watson that Mr Carroll was taking a very different approach from his predecessor.
"This is a very determined response by the new premier," he added.
"I (have been) disappointed by the response the Victorian government under premier Allan had to my report, which I thought they would find helpful and which they seemed to resent.
"Now we have a totally different approach."
Further information including hearings and witnesses will be provided once the commission's team is established, Mr Kourakis said in a statement.
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.
The royal commission will have a $50 million budget, with a final report due in August 2027.
