Chief Minister Andrew Barr has distanced himself from the CFMEU's push to have more power in the ACT's procurement system, saying the proposal was not being actively considered.
The Master Builders ACT also called on ACT Labor to stand up to the union and reject the "outrageous request" to hand them powers to investigate and prosecute companies vying for government contracts.
"The principles of freedom of association and competition must be protected. It beggars belief that the CFMEU would call for the union to have even more power over ACT government procurement decisions," a spokesperson for the association said.
The Master Builders said the push was especially galling in light of allegations about the union's activities in Victoria.
Opposition Leader Elizabeth Lee called on Mr Barr to unequivocally reject the union campaigns for "extraordinary and unprecedented power" over tenders and senior public service appointments.
"Andrew Barr must come out publicly and confirm whether he supports this extraordinary push by the ACT branches of the CFMEU and the CPSU seeking even more influence over ACT government procurements and the appointment of senior ACT public servants," Ms Lee said.
The Canberra Times on Tuesday revealed the powerful ACT branch of the Construction, Forestry and Maritime Employees Union had put forward a general resolution for ACT Labor conference to secure a consultation process in the secure local jobs code certification scheme.
The union also wants the power to investigate and prosecute companies vying for public contracts under the code, which requires companies to satisfy an auditor they meet minimum standards on pay, workplace safety and industrial organising.
The CPSU wants a union representative on joint selection panels tasked with appointing top public servants in the ACT, one of its motions revealed.
Mr Barr said motions put up at ACT Labor's annual conference were subject to amendment and would be considered by more than 200 conference delegates in the lead up.
"This involves clarification on the intent and the practicality of these motions, and motions can be referred to ACT Labor's policy committee's or branch council for further work," Mr Barr said.
"At this stage, the policy proposals put forward as motions are neither an ACT Labor party policy position, nor something that is being actively considered by the government."
The Master Builders said if the union's proposal was implemented it would have a devastating impact on the construction industry and could put more barriers in the way of achieving housing targets.
"If the CFMEU get their way, they will continue to bully and harass not only our builders and subcontractors, but our government officials too," the association spokesperson said.
Mr Barr said ACT Labor condemned in the strongest terms criminal activities alleged to have been undertaken by members of the CFMEU Victorian/Tasmanian branch.
"We reiterate the views expressed by the Prime Minister, the Victorian Premier and the Secretary of the ACTU that this behaviour has no place in the union movement," Mr Barr said.
"The national CFMEU needs to urgently clean up its Victorian/Tasmanian branch in the best interests of Victorian and Tasmanian construction workers and the broader union movement.
"The starting point for this is the decision to place the Victorian/Tasmanian branch into administration, and we are expecting that further actions will be announced in the coming days."
Mr Barr noted the allegations published by the Nine newspapers at the weekend did not include the ACT branch of the CFMEU.
"ACT Labor has not received any donations or affiliation fees from the Victorian/Tasmanian branch of the CFMEU," he said.
Ms Lee said Canberrans were right to question whether the underworld figures, bikie gangs and criminals had infiltrated the ACT branch of the CFMEU.
"The ACT is the only jurisdiction in the country that does not have anti-consorting laws which makes Canberra a desirable location for outlaw bikie gangs and organised criminals," she said.
The Canberra Times suggests no wrongdoing on the part of the ACT branch of the union.
Zach Smith, who is both national and ACT branch secretary of the CFMEU, has said the allegations in Victoria were serious and the union had no tolerance for criminality.
"My message to all CFMEU members in the ACT and across Australia is it's business as usual. The union's unwavering focus remains on ensuring construction workers are paid fairly and go home safely at the end of each shift," he said on Monday.
Mr Smith told ABC radio on Tuesday John Setka, who resigned as head of the CFMEU's Victorian branch, had not shamed the union.
"He made a decision on Friday to step aside because he thought it was the best thing for the union the best thing for the members of CFMEU. That speaks to his integrity and credibility," he said.
Mr Smith said external administration and further federal government intervention was not necessary to address issues with the union.
