LEND Lease says it will work with the Victorian government to ensure it qualifies for the Bendigo Hospital project.
The company's construction and infrastructure chief executive Mark Mennhinnitt said a solution to the government ban could be reached.
"The government has advised Lend Lease that transitional arrangements will be implemented," he said.
"This will provide Lend Lease the opportunity to go through a process to ensure all of our entities are compliant.
“Lend Lease is supportive of the objective of the code and the implementation guidelines, being the cost effective delivery of infrastructure for the people of Victoria that also benefits the industry and our clients."
Mr Mennhinnitt said he was confident the company would "continue to play a major part in shaping the future of Victoria."
A WELL-placed government source has confirmed Lend Lease will not be eligible to build the new Bendigo Hospital.
Lend Lease has reportedly been banned from Victorian government work for up to four years.
The company, one of two consortia bidding for the $630 million project, signed an agreement the Construction, Forestry, Mining and Energy Union against state government regulations in October.
The Age reported the deal meant the company would be ineligible for the hospital bid, which the source confirmed.
But they said if the agreement ended or was changed, the company could be eligible again.
They also said Lend Lease could be possibly replaced by another construction company in the consortia, allowing the consortia to be considered for the tender.
“As long as the agreement runs for, they’re not eligible,” they said.
“We have a set of industrial relations guidelines, they must comply with them to be eligible for government work.”
A government spokesperson said they would not comment on Lend Lease because of the live tenders.
“It would not be appropriate to comment on a particular company that may currently be involved in a live tender process for Victorian government construction work,” they said.
“If a company is found to be non-compliant then the responsibility then rests with the company to take appropriate action in order to render itself compliant.”
Member for Bendigo East Jacinta Allan said the decision could lead to a cost blowout.
"Today the state government says it won't deal for Lend Lease for ideological reasons, making it a one horse race," she said.
"With no competition under this government’s tender for the Bendigo Hospital it is a one horse race.
"As a result, the cost will blow to kingdom come.”
Ms Allan said the Baillieu Liberal National government would cut back the scope of the project to cover up the blow-out they were caused "as a result of bungling the tender process".
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