The demands were made at a meeting during a two-day stoppage on the Gap Road level crossing removal in Sunbury, northwest of Melbourne, in June 2022.
The inquiry continued on Tuesday with further evidence about the grip the CFMEU held over public worksites across the state.
Two employees of construction giant John Holland told the inquiry it was clear CFMEU members had an agenda when they started flagging dozens of safety issues and spending an increasing amount of time on site.
"They weren't there to say hello," Robert Van Den Tol told the commission.
"They were on a mission for something."
Work was forced to a stop on June 6 after CFMEU delegates occupied the site, blocking machines and refusing to move even when police were called.
Steve Testolin worked for John Holland as general superintendent on the Sunbury project, with supervisor duties including managing industrial relations.
"It's pretty much a stand-off at that time," he told the commission.
On June 7, Mr Testolin attended a meeting with CFMEU officials including Joe Myles who he said he knew at the time he was to give in to the union's demands.
"Joe then pretty much said 'enough with the small talk, what do youse want?" Mr Testolin said.
"The room went pretty quiet.
"I just thought I better say something so I said, 'How bout you cut the bullshit and tell me what you want."
The union's requirements for work to resume included installing their choice of health and safety representative, a labour hire company and a traffic control company, Mr Testolin said.
Mr Testolin said he was told that if they aligned themselves with the union moving forward they would be a preferred contractor for future projects including the Airport Rail.
On Tuesday morning the commission heard evidence from Glenn Tyrrell who worked for labour hire company Zoom Recruitment on the Sunbury project.
Mr Tyrrel functioned as health and safety representative for the site prior to the occupation, but says afterwards his duties were reduced essentially to zero.
Mr Tyrrell told the commission less than a week after the forced stoppage he was called into a meeting where he was told to sign on with new labour hire employer, BK Labour and to become a member of the CFMEU.
"Did you join them?" counsel assisting Tim Jeffrie asked.
"Had to," he replied.
Mr Tyrrell told the commission CFMEU organisers had effectively stopped work on the site, issuing dozens of safety notices and standing in front of machinery.
"Things changed when there was a fairly heavy presence of union on site," he said.
"They just stopped works."
Mr Tyrrell said there was no practical reason he could see why there needed to be a change of labour hire company after work resumed.
On Tuesday, shadow attorney-general James Newbury criticised the high legal fees for ex-premiers Daniel Andrews and Jacinta Allan to be represented at the commission and vowed not to pay their legal bills if elected.
He called for expanding the royal commission's terms of reference to investigate the flow of money between unions, Labor, and the government.
"Today we are calling on Ben Carroll to release every document that the royal commission has asked from this government," he said.
The commission's final report is due in August 2027.
It was called by Victorian Premier Ben Carroll in August following years of reporting on alleged wrongdoing on Big Build sites linked to the CFMEU's Victorian branch, which represents workers from the construction, forestry, mining and energy sectors.
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