Public Works Minister Mick de Brenni says the review comes after a parliamentary committee heard last year that contractors and subcontractors were bearing a bigger financial burden than developers in the $47.4 billion construction sector.

He says a Developer Review Panel, headed by industry expert Alison Quinn, will look at developers' financial and operational capacity, ethical behaviour and work practices.

"When property developers do their job well, we get great outcomes," Mr de Brenni said in a statement on Tuesday.

"And we know when industry works together - as we have shown through the COVID pandemic - we get the best outcomes for everyone.

"But we know it is contractors and subcontractors who bear the burden arising from incomplete works, payment disputes and non-compliant works or products."

The minister said property investment firm chief executive Adrian Pozzo, construction advisory firm managing director Gina Patrick, and lawyer John Payne have also been appointed to the panel.

Mr de Brenni said the panel would be supported by a reference group including developers and representatives from the insurance sector, building and construction and the legal profession.

Master Builders deputy chief executive Paul Bidwell said he hoped the review would solve payment issues plaguing the construction sector.

He said his organisation would be urging the panel to consider including developers under the state's security of payment laws.

"We know from bitter experience that late or non-payment is a blight on our industry and can have devastating implications down the contract chain," Mr Bidwell said in a statement.

"The reality is that problems frequently start at the top with owners and developers and trickle down to negatively impact builders, subcontractors and suppliers."

Australian Associated Press