Master Builders Australia has branded the CFMEU's report last week on sham contracting as a cynical exercise in scaremongering and an attempt to disrespect the work of the ABCC inquiry into alleged sham contracting.

Wilhelm Harnisch, CEO of Master Builders Australia, said: "The CFMEU's own report states that it takes an 'extremely cynical view' of the ABCC's inquiry and round table process. The CFMEU has labelled it as an 'opportunistic power grab to cut out a niche role for the ABCC and give itself on-going relevance as an industry-specific regulator'.

They say the building unions are using sham contracting allegations as a misguided justification to apply unlawful industrial tactics to close down sites.

"Unlawful behaviour should not and must not be a feature of the industry's operations. Unfortunately unacceptable behaviour is returning to the industry despite the existence of a tough watchdog and things can only get worse without a strong regulator; the union's contempt for the industry regulator by not participating in the inquiry speaks volumes.

"Master Builders believes that union concerns should be discounted in light of their refusal to participate in an inquiry that seeks to test their allegations of sham contracting. Evidence should be provided to the current inquiry and be subject to objective and independent scrutiny. Otherwise, the union's complaints should be ignored.

"Master Builders calls on all political parties to support the objectives of the ABCC's work in applying the rule of law on construction sites,” Harnisch said.