Byzak Ltd were responsible for carrying out the works associated with the Dunfermline Flood Protection Scheme. However, in a statement, the local authority said the project has now overrun by more than four years and at least £11m over the original project budget.
Following legal advice, the Council decided to end the firm's contract last week.
Councillor Pat Callaghan, Executive Spokesperson for Environment and Transportation, said: "The current level of performance is unacceptable and Fife Council has had to intervene to remedy the situation.
-- Advertisement --
"I share the frustration of Dunfermline residents over the length of time this project is taking and we apologise for this. Please be assured we are doing everything within our power to complete this project as soon as possible and end the inconvenience and disruption caused by it.
"We will now begin the process of retendering this project, to see the remaining works through to completion. All going well, a new contractor will be on site in early summer, with the works completed in autumn 2014.
"In the meantime, the site will be kept in a safe and secure condition and we are taking steps to remove the temporary traffic signals at Forth Street until a new contractor is appointed."
The Council has also organised a drop-in session to allow the local community to attend and speak to the project team.
The event will be held on Wednesday 22 January from 3.30pm to 6.30pm at the Dell Farquharson Centre.
(JP/IT)
