Isaac Construction chief executive Jeremy Dixon confirmed a staff member received a shock after a live cable was accidentally severed.
The incident happened on a section of George St between St Andrew St and Moray Pl, where earthworks for the George St upgrade are under way, about 9am yesterday.
Mr Dixon said the company’s focus was on ensuring there was support for the 34-year-old worker and her family.
He had flown from Christchurch to Dunedin when he heard about the incident to oversee the company’s response.
Last night, the injured worker was on the mend and was doing as well as could be expected, he said.
Her partner was with her and the company had flown her family to Dunedin, Mr Dixon said.
The company would work to ensure such an event could not happen again, he said.
Senior Sergeant Anthony Bond, of Dunedin, confirmed the woman received electrical burns to her arm when she cut through a live cable in a trench.
An Aurora spokeswoman said a "flashover" happened when contact was made with the 400-volt cable.
At the scene, emergency services staff administered first aid to the injured woman as she lay beside the ditch where she had been working.
A St John spokeswoman said the patient was later taken to Dunedin Hospital by ambulance in a serious condition.
A nearby shop worker said she heard a big bang, followed by people running and calling for an ambulance.
Another said he felt a big rattle before he looked over to the construction site and saw a person lying on the ground.
Dunedin City Council corporate and quality general manager Robert West said the council’s immediate focus was on supporting people.
Thanks were due to an off-duty doctor, who provided first-aid assistance immediately after the incident, he said.
It was too soon to say if the incident would have any effect on the project’s timeline.
"Other than ensuring the site is safe and the route for [today’s] university graduation parade is ready to go, we are focused on supporting our people through this difficult time," he said.
WorkSafe was aware of the incident and was making initial inquiries, a spokesman said.