Wingecarribee Shire Council suspended the $325,000 streetscape and drainage project on Monday after an alleged breach of contract by ATCO Building NSW.

The works, which commenced at the start of October, were to be completed by mid-November - however that now appears unlikely.

Half of the existing footpath and part of the road from the Old Post Office Cafe to the village hall has been dug up, which has greatly reduced accessibility to shops and also caused difficulties in relation to their stock deliveries.

Shopkeepers, who are greatly appreciative of the continued support of their most loyal customers, are already experiencing a downturn in trade and fear that things will only get worse before they get better.

"We're hurting because there's no parking on the road outside the shops and limited parking opposite, so people are just driving straight through," said pharmacist Des Perkins.

"Sadly we've been told that nothing more will be done before next week at the earliest."

"People aren't just pulling up, jumping out of their cars and grabbing a few things," added Bundanoon Deli proprietor Dianne Day.

"Many locals are going into Moss Vale, doing their shopping, going to a chemist and grabbing whatever else they need there too."

Peter Giannako of the Primula Cafe said takings were down by more than $1000 per week and custom from the elderly, the disabled and mothers with prams had all but ceased as a result of the works.

"It should have been done in two stages - it's crazy to close a whole shopping centre like they have," he said.

Safety concerns have also been raised, with a mess barrier erected by the contractor not totally encompassing the works and school buses currently stopping virtually on the corner of Railway Avenue and Church Street.

Council general manager David McGowan, who has confirmed that legal advice is being sought in relation to the alleged contractual breach, has described the completion of the project as "a priority".

"We are trying to progress as rapidly as possible," he said yesterday.