The civil engineering company revealed a lack of building materials pushed back the upgrade project in Kirkcaldy.
The project is now expected to be completed in November.
In May, Land Engineering stated the scheme was approximately one month behind schedule.
The contractor is to finish building new parking areas along the High Street as well as new footpaths in August. Work will then begin at the junctions at Nicol Street and Charlotte Street/Whytehouse Avenue.
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Council Leader David Ross said the local authority had been let down by the company.
"We met on site with Land Engineering and Council officials on Friday and insisted that everything possible should be done to minimise the impact of this delay on local shops and High Street users," he said.
"We hope the current work to create additional on street parking and new footways will be completed and that the west end of the High Street can be opened up again while the contractors move on to other parts of the project.
"They'll then return to finish off the remaining elements of the work with final completion due by November."
Ken Gourlay, Head of Service for Assets, Transportation and Environment, added: "We're doing everything within our power to ensure Land Engineering address our concerns and find ways to reduce these delays. Any additional costs incurred by these delays should be absorbed by the contractor."
(LM/CD)
