The new facility, planned for the Mosgiel Station rail yard, will have space for 200 cars and is planned to alleviate congestion and parking pressure in Dunedin’s CBD.
Dunedin City Council tender documents said work was expected to start in November and it was "critical" the project be completed on time.
"You must have the resources in place from day one to ensure you meet the completion date of May 31, 2026," the document said.
The city council and Otago Regional Council had been working to make public transport more attractive to people from Mosgiel and the surrounding area, reducing reliance on cars.
The park and ride was intended to create easy bus access for commuters.
The tender documents show the scope of work includes removing the existing stockpile of "contaminated material" from the site, building an access bridge over Owhiro Stream off Burns St, laying asphalt and installing bus shelters and drainage racks.
A toilet block may also be installed in future, the documents said.
A budget of $5 million, including New Zealand Transport Agency Waka Kotahi co-funding, was included in year one (2025-26) of the council’s nine-year plan.
The park and ride is one of five complementary Shaping Future Dunedin Transport projects included in the plan and developed in partnership between the councils and NZTA.
