Business groups fear Australia’s construction industry could “grind to a halt” unless there are “urgent” reforms.

Five groups including Master Builders Australia and the Australia Industry Group have written to federal Industry Minister Karen Andrews pushing for uniform regulations, fearing the economy could suffer unless action is taken.

It comes a month after evacuations of three Sydney towers over safety concerns, and fears over combustible cladding at buildings across Victoria.

Minister Andrews has told 9NEWS, while the federal government has no constitutional power to regulate buildings, she is calling for the states and territories to implement “nationally consistent reforms”.

“I’ve heard the calls of industry and will keep working with the states and territories so they implement the recommendations of the Building Confidence Report,” Minister Andrews said.

Business leaders are also concerned a struggle to get professional indemnity insurance could cause construction rates to slow.

Construction groups say indemnity insurance became increasingly expensive in the wake of the fire at the Lacrosse building in Melbourne in 2014.