Construction and delivery of the upgrade, which was due to begin in 2021, will now be determined by the design work and tendering process required to secure a new contractor with the minimum delay.
Cambridge City Council said the appointed contractor is unable to proceed as originally intended due to other significant schemes stretching their resources.
The scheme was to deliver a premium aparthotel of 229 rooms, with a public courtyard linking Park Street and Bridge Street, above a modern basement car park with around 225 public car parking spaces including Blue Badge parking, modern and flexible cycle parking (including cargo bike parking) and motorcycle parking.
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Electric vehicle charging points will be provided for 10% of the capacity (22 spaces) initially, with infrastructure in place to expand this throughout the car park.
The council will now continue to liaise with stakeholders, neighbours and local businesses to optimise a new start date for demolition and construction. The facility will remain open until the new programme is secured.
Councillor Nicky Massey, Executive Councillor for Transport and Community Safety, said: "It is disappointing to have to delay start on site at this point. There are, however, some benefits for both the public and local businesses to having the car park open for longer as we move through the current coronavirus crisis.
"I'm delighted, however, that during these challenging times, this much needed redevelopment of the car park is still progressing and will create employment and economic benefit in both the short and longer term for the city.
"We will keep in touch with local neighbours, residents, traders and landowners to keep them informed and resolve any issues that arise during the course of the construction project. Our aim, and that of our development partner and their contractor, will be to minimise disruption and get the scheme completed as soon as possible."
(JG)
