The collapse of construction giant Carillion has lead to the suspension of work by subcontractors on the Lincoln Eastern Bypass.
Construction firms have said work will not continue until they have assurances they will be paid for their services.
No subcontractors have terminated their agreements with Carillion at the time of writing.
Lincolnshire County Council has promised the project will be completed, but there will be some delay while a replacement is found.
Carillion went into liquidation from Monday, January 15 with more than £900m of debts.
The construction giant had been awarded a £53 million contract to manage the construction element of the £99 million bypass in 2016.
Some 10% of its work has so far been completed and the company. It has been paid around £5 million and is owed £200,000.
A Lincolnshire County Council spokesperson said: “Archaeological investigations and work to the Network Rail Spalding to Lincoln rail bridge are carrying on as planned today; however, most of Carillion’s sub-contractors have temporarily suspended their work, pending assurances that they will continue to be paid for it.
“At this stage, none of the appointed subcontractors have terminated their subcontracts with Carillion.”
Lincoln’s MP Karen Lee previously called for assurances from the government that jobs and public finances would not be affected by the news.
Richard Wills, Executive Director for Highways, said previously: “The Lincoln Eastern Bypass will still be built.
“There may, however, be some delay while we look at all of the options available with progressing the scheme – the most likely one being the appointment of a new contractor to manage and deliver the construction element of the scheme.”