On 20 August 2026, the Premier of Victoria announced The Royal Commission into the Integrity of Major Public and Civil Infrastructure Construction Projects in Victoria (the Royal Commission).

The Royal Commission has been established to investigate allegations of corruption, criminal conduct and serious misconduct in connection with major public infrastructure projects across Victoria. The Commission's focus extends beyond identifying instances of misconduct and will also examine whether existing governance, procurement, oversight and regulatory frameworks have been effective in preventing and responding to such conduct.

By Victorian Letters Patent dated 20 August 2026, The Honourable Christopher Kourakis AC was appointed as the Commissioner. Mr Chris Young KC and Mr Christopher Carr SC have been appointed as counsel assisting the Commission.

The Commissioner is required to provide a report containing his final findings and recommendations by 20 August 2027, although an interim report may be issued earlier if urgent or immediate actions are considered necessary in relation to corruption, criminal conduct or serious misconduct on any major construction projects currently underway.

Scope

‘Major construction projects’ is defined as all major public and civil infrastructure construction projects commissioned by the State of Victoria, including any State entities under the Public Administration Act 2004.

While media coverage has centred on transport flagships (such as Metro Tunnel and North East Link), the Terms of Reference expressly refer to the Victorian School Building Authority and Development Victoria which suggests that school, community and social infrastructure projects could also be captured. Private-sector major non-residential projects are also in scope for identifying preventative measures.

Objectives

The objectives of the Royal Commission are to:

1. Identify the nature and extent of corruption, criminal conduct and serious misconduct on or in relation to major construction projects in Victoria.
2. Identify any flaws or weaknesses in the operational, contractual, regulatory, licensing and statutory frameworks, organisational and workplace culture and law enforcement that may have allowed any identified corruption, criminal conduct or serious misconduct to occur on major construction projects.
3. Identify the impacts of corruption, criminal conduct or serious misconduct on major construction projects and understand what measures may be required to address patterns of conduct that also extend to major construction projects commissioned by the private sector for private sector purposes.
4. Support the Government in improving the operational, contract management, oversight, regulatory, licensing and statutory frameworks, organisational and workplace culture and law enforcement applicable to major construction projects in Victoria to prevent future corruption, criminal conduct or serious misconduct and rebuild trust in the integrity of the major construction sector in Victoria.
5. Instigate referrals, including by working cooperatively with a Special Prosecutor, to Victoria Police, IBAC, Regulatory and Licensing Authorities or other relevant bodies for the investigation or prosecution of individuals or entities responsible for corruption, criminal conduct or serious misconduct and to work cooperatively in relation to any other functions conferred on the Special Prosecutor in the future.

Terms of Reference

Having regard to the objectives of the Royal Commission, the Commissioner must inquire into and prepare a report on the matters contained in the Terms of Reference.

The Terms of Reference are expansive and include the following:

• the extent to which corruption, criminal conduct or serious misconduct has occurred on or in relation to any major construction projects.
• whether the Executive Government of Victoria and/or Delivery Authorities adequately adhered to their roles and responsibilities in the oversight and governance of major construction projects.
• the causes and contributing factors that enabled any misconduct to occur.
• the actions taken by contracting entities to respond to or mitigate the risk of corruption, criminal conduct or serious misconduct occurring on or in relation to any major construction projects.
• the actions taken by the Executive Government of Victoria to respond to and mitigate the risk of corruption, criminal conduct or serious misconduct occurring on or in relation to any major construction projects.
• the effectiveness of measures recommended by previous inquiries.
• measures that could be implemented to prevent, reduce, or mitigate the risk of occurrence of corruption, criminal conduct or serious misconduct on or in relation to any major construction projects.
• measures to recoup funds paid by the State where they have been misappropriated or received as a result of corruption, criminal conduct or serious misconduct on or in relation to major construction projects.
• measures to prevent, reduce, or mitigate the risk of occurrence of corruption, criminal conduct or serious misconduct on or in relation to construction of major projects commissioned by the private sector for private sector purposes, excluding domestic or residential construction projects.
• any other matters reasonably incidental to these Terms of Reference.

What does this mean for organisations?

While the Royal Commission is focused on major public and civil infrastructure projects, its potential implications extend across the broader construction, infrastructure and major projects sectors.

Notably, the interim report power means that projects currently under construction could be subject to urgent interim recommendations before the final report is delivered in August 2027.

Businesses should consider whether their existing frameworks are fit for purpose, including:

• governance and reporting arrangements
• procurement and supplier management processes
• contract management and oversight mechanisms
• records management and document retention practices
• whistleblower and misconduct reporting frameworks
• policies and procedures designed to identify and mitigate corruption and compliance risks.

Next steps

In a media release published on 4 September 2026, the Commissioner stated that “The team will be working at pace to ensure we’re delivering a thorough and transparent process that will meet the needs of Victorians.”

We expect that Notices to Produce documents to the Royal Commission will be issued shortly.

In the interim, government agencies, head contractors, subcontractors, labour-hire providers, suppliers and other organisations involved in major construction projects should consider whether their project records are appropriately preserved and readily accessible and whether existing governance, probity, complaints-handling and escalation processes are operating effectively.

We will continue to monitor and provide updates as the Royal Commission progresses.