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.