Vic plumber told 'hike prices or else'

Union "animals" threatened to kill a plumber unless he raised his prices, a developer has told the unions royal commission.

But union lawyers responded by saying Melbourne developer Leigh Chiavaroli was looking for a scapegoat after his Pentridge Prison redevelopment stalled.

Mr Chiavaroli told the inquiry on Wednesday that Croatian officials from the Construction, Forestry, Mining and Energy Union (CFMEU) threatened plumber Joe Mellino to make him raise his prices on the job.

"He called it the Croatian mafia and that he was being pressured to the point where they were turning on him like animals," Mr Chiavaroli told the inquiry on Wednesday.

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"According to his words, I quote, 'They're like animals, they'll kill me'."

Mr Chiavaroli blamed CFMEU interference for the development stalling, but union lawyer John Agius SC said financial mismanagement and a dispute over bushranger Ned Kelly's remains were behind it.

"I suggest to you that you're scapegoating the CFMEU for the losses that were sustained because you do not want to take responsibility for the financial mismanagement of your own project," Mr Agius said.

"I categorically deny that," Mr Chiavaroli replied.

He agreed the discovery of Kelly's remains had delayed the project, but denied it was the reason the developers had cash-flow problems.

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Vic plumber told 'hike prices or else'