Fletcher Building is believed to have withdrawn as one of two preferred bidders for Auckland's underground rail project.
Fletcher's chair Sir Ralph Norris resigned last week after the company - New Zealand's largest construction firm - announced massive losses of $660 million.
City Rail Link said the release of documents for the tendering process will be delayed by up to three months.
Its chief executive, Chris Meale, said discussions had already started with another prospective bidder.
Analysis: The profitability, economic value and reputation of New Zealand's biggest construction company have been whittled away over the last few years, writes Gyles Beckford.
Fletcher Building's chair Sir Ralph Norris will resign after the company announced it was expecting $660m in losses, four times greater than initially projected. Audio
Auckland's big underground rail project is expected to create up to 1600 jobs, with many suitable for those struggling to find work.
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