Videos show onlookers screaming at the driver to stop as the machine mounted the stairs of the budget hotel and smahed through the doors.
Debris is seen flying around as the driver mowed through the entrance and into the lobby of the Edge Lane site.
The footage, which has now gone viral, shows a bystander banging on the side of the cab in a bid to halt the rampage but the driver ignores the pleas and rams the reception desk.
Merseyside Police are investigating and are appealing for information from witnesses.
Witness and celing fixer Samuel White, 24, said the driver was involved in a pay dispute over £600 with contractors at the hotel, which is under construction.
Mr White said: “The handover was today. Everything completed, we’d put the last tile in, cleaned up and made sure everything was perfect.
“Then some idiot in a mini digger decided to drive through the middle of the building.”
Witnesses said the devastation continued for “a good 20 or 30 minutes” before the diver abandoned the vehicle and fled the scene.
“There wre loads of workers outside all gobsmacked, jaws to the floor wondering what’s going on,” Mr White added.
“The site manager was running around like a headless chicken, he wasn’t happy at all.”
Many have sympathised with the worker after hearing he is owed unpaid wages. Following the claims a GoFundMe page was set up to raise the £600 and to help cover legals fees he may face after the incident.
After just 10 hours the page smashed its target and stands at £780.
Police arrived at the hotel at Liverpool’s Innovation Park at around 3pm yesterday. They confirmed one man was treated at the scene by North West Ambulance Service for irritation to his eyes caused by exposure to diesel.
Merseyside Fire and Rescue serviecs and contractors from the construction company attended to ensure the site was safe.