Following discussions with the major construction companies, the CBI has agreed to set up the Council chaired by John McDonough, chief executive of Carillion plc and vice chairman of the CBI's Public Services Strategy Board.
The Council, which will represent contractors, house builders, civil engineers, component and product manufacturers, designers and support services, will begin its work in September.
Commenting on the move, the CBI's director-general, Richard Lambert said: "The UK construction industry consists of over 250,000 firms, employing 2.1 million people in a wide variety of roles, and accounts for almost 9 per cent of GDP.
"Until now, this important industry has not had the single unified voice it deserves…The Construction Council will work closely with the major trade bodies to strengthen their efforts to represent the construction industry and ensure its concerns are clearly heard."
The news comes amid a dark era for the construction industry in the UK where job cuts are expected and projects are put on hold in the Credit Crunch.