Three car parks are being removed to extend Shotover St's footpath outside the busy burger restaurant, to help ease pedestrian congestion.
However the original $100,000 estimate approved last year by local councillors has almost doubled and ratepayers are picking up the balance.
Queenstown Lakes District Council infrastructure general manager Peter Hansby confirmed the $175,000 contract, excluding GST, has been awarded to Fulton Hogan.
He said additional costs not included in the contract include $6500 for electrical work, $6000 for seating and $4000 for improved ''pedestrian flow''.
The work totals $220,000 when GST is added.
Long-time Queenstown businessman Kim Wilkinson, a pharmacist, said last month the cost overrun left him ''disturbed''.
Fergburger has agreed to pay a $3500 annual fee for occupying the land.
