The shutdown was announced late on Monday following violent protests outside the CFMEU's head office in Melbourne's CBD over a vaccine mandate for the industry.
It applies to work sites across Melbourne, Ballarat, Geelong, Mitchell Shire and the Surf Coast.
Industrial Relations Minister Tim Pallas said the shutdown was required to cut down movement, reduce COVID-19 transmission and give the industry time to adapt to the new requirements.
'We put the industry on notice just a week ago, we have seen appalling behaviour on-site and on our streets, and now we're acting decisively and without hesitation,' he said in a statement.
An amnesty was in place on Monday so that a limited number of workers can attend construction sites to shut them down safely.
The government said all sites will need to demonstrate compliance with the chief health officer's directions prior to reopening, including the requirement for workers to show evidence of having had one dose of a COVID-19 vaccine before they return to work on October 5.
The Property Council of Australia said the shutdown would cost the economy $1.1 billion a week.
'The majority of construction sites and construction workers are doing everything required of them to meet the highest standards of COVID safety and