From Monday, the NZ Transport Agency plans to start work in Gordon Rd between Cargill St and Hagart-Alexander Dr.
Contractors will work seven days a week, including nights.
Traffic will be restricted to one lane and temporary speed restrictions will be applied.
Some bus stops will be moved temporarily and passengers can expect delays.
The project will cause disruption throughout January and February, but work itself was not expected to stop until March 15.
Monte Carlo Milk Bar owner Jason Zeng said he was worried about his staff and customers finding parks.
‘‘I don’t know what will happen. It may be hard for us. That’s a pretty long time.’’
He only found out about the work yesterday, he said.
Spin City Cycles owner Wayne Evans said it was ‘‘going to be great’’ once the road was repaired.
The left side of the road travelling in from State Highway 1 was filled with ‘‘holes and bumps’’, he said.
Mosgiel Business Association committee member Judd de la Roche said the work would inevitably affect businesses.
‘‘It is going to hurt them. Small businesses have a pretty tough existence and need every penny they can get.
‘‘It has to have an effect when people can’t park. Mosgiel is great in that it has essentially free parking.’’
NZTA coastal Otago maintenance contract manager Nick Rodger said the work would involve milling the existing surfacing and underlying asphalt and pavement layers for a ‘‘stronger, smoother, and quieter surface’’.
‘‘The transport agency has engaged extensively with local businesses and spoken with business owners within the work site to ensure they are fully informed and to understand their concerns and mitigate those where possible.’’
It also provided opt-in email updates for residents and businesses.
‘‘We’re also working directly with several businesses to ensure they can continue to operate as seamlessly as possible during the works.’’
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