Australian Building and Construction Commissioner Leigh Johns has confirmed the investigation of claims of underpayment on a $13 million government housing project in Northbridge.
The investigation commenced on Monday, after claims surfaced that building contractor Proform had failed to pay workers since mid-December.
"All workers are entitled to be paid fairly and promptly for their services, and it is part of the ABCC's responsibility to ensure that employers who underpay their workers are held to account," Mr Johns said in a statement released today.
"Without prejudging the outcome of this investigation, the ABCC will vigorously pursue employers who attempt to rip off workers.
"Ensuring a fair day's pay for a fair day's work is part of our core operations as the national regulator of workplace relations in the building and construction industry."
Mr Johns said it was too early to tell if Proform was engaged in sham contracting, where workers are denied entitlements such as leave or superannuation, but the ABCC would investigate any claims thoroughly.
Police were called to the site in Newcastle Street on Monday after construction workers launched industrial action and refused to continue work.
The Construction, Forestry, Mining and Energy Union said Proform owes workers a combined total of $150,000.