The prospect of future work on the site has been put in doubt after Peninsula Road, which owned the land earmarked for stage 2 and 3 went into receivership last week.
About 500 Queenstown construction workers are believed to be working on stage 1.
Rilean construction director Stephen McLean said he had 50 workers, including 25 carpenters, building three luxury apartment complexes due to be completed next month.
"We are not involved in stage 2 and 3, so the receivership will have no immediate effect on us.
"It will have more effect on the town and the continuity of construction work.
"The town will be affected by the loss of the facilities planned for stage 2, which included a conference centre," he said.
It appeared another construction company would build stage 2, but he had hoped to work on stage 3.
"We have a number of projects going on and are madly tendering for other jobs. I don't envisage that we will be reducing staff. They can be absorbed on to other projects," he said.
Naylor Love managing director Trevor Kempton said the company would have been interested in being involved in stage 2 and 3.
"However, we have not planned on the basis that stages 2 and 3 would follow immediately after stage 1 and provide a continuous flow of work," he said.
The Kawarau Falls contract was expected to be complete within six weeks.
"This has been known for some months and has been factored in to our forward planning.
We have other projects in Queenstown and Wanaka and are not anticipating a major change in employee numbers," he said.
Mr Kempton said the number of employees working on stage 1 was "tapering off and well below the peak".
About 50 workers employed by a subcontractor were pulled off the site this week following a dispute between contractors.
Work and Income spokeswoman Joy Gunn said there had been no increase in the number of construction workers turning up at the Queenstown office.
"It's pretty steady, but we've had no particular increase at all," she said.
