Liverpool Crown Court heard how, on 8 August 2013, Jones, 67, was walking across the Redrow site in Knotty Ash when he was struck by a reversing dumper truck.
Jones was crushed under the rear wheels of the vehicle and confirmed deceased at the scene.
The incident was witnessed his son who was also working at the construction site.
An HSE investigation found that Redrow Homes had made no provision to maintain separation of vehicles and pedestrians in the plot where Jones died.
It was heard that the traffic management across the entire site was poorly managed and was an underlying cause of the accident.
The investigation also found that sub-contractor WPI Civil Engineering Limited failed to provide a banksman, or have any employees on site trained as banksmen, and that the vehicle involved was not fit to be used on site.
Redrow Homes of Flintshire, pleaded guilty safety breaches and was fined £500,000 and ordered to pay costs of £101,000.
WPI Civil Engineering Limited of Cheshire also pleaded guilty and was fined £300,000 and ordered to pay costs of £17,000.
Speaking after the hearing, HSE inspector Jacqueline Western said: “This tragic incident was wholly avoidable.
“Having safety measures to protect pedestrian workers is a basic and well recognised principle of good construction management.
“Mr Jones’ death could easily have been prevented if both the principal contractor and the sub-contractor had implemented safe systems of work and ensured that health and safety documentation was communicated and followed.
“Tragically, on this occasion both Redrow Homes and WPI Civil Engineering failed to do this.”