There is no guarantee the construction industry watchdog will survive in its present form under the Rudd Government's new industrial relations agency, a former Federal Court judge says.

Murray Wilcox, QC, heads the inquiry that will recommend to the Government the final shape of the specialist division overseeing the industry within Fair Work Australia.

While there was no question there would be a specialist division to police the industry, Mr Wilcox said he was open to ideas in submissions to his inquiry, which will report to Workplace Relations Minister Julia Gillard next March.

The new division would replace the former Howard government's Australian Building and Construction Commission, reviled by unions for its draconian powers of coercion and powers to jail workers and impose heavy fines.

In a discussion paper issued yesterday, Mr Wilcox called on parties to think imaginatively.

''All options are open for consideration,'' he said.

His attitude is likely to come as a relief to building unions and the ACTU which have campaigned for the commission's abolition.

Australian Industry Group chief executive Heather Ridout said the culture of the construction industry had been transformed under the commission. ''That is a legacy that must be protected,'' she said.

The inquiry will receive submissions until December 5.