The Swedish furniture giant's long-awaited plan to start selling in the capital by the end of 2015 was formally announced on Thursday afternoon as trouble swirled around the major road infrastructure project.

Parkway subcontractor Hewatt Earthworks' collapse has raised the prospect of delays affecting the motorway along the city's east flank, the construction of which was a key reason for Ikea's decision to choose that site. Hewatt entered voluntary administration on Thursday and all workers were stood down.

However, ACT Chief Minister Katy Gallagher said she remained confident lead contractor Fulton Hogan would fulfil its pledge to meet construction deadlines, which should see the road complete by mid 2016.

"As far as I'm aware, and we've had some discussions with Fulton Hogan this week, that project is on track and on time," Ms Gallagher said. "That's what we've been told by our contractor ... and I have no information before me to not believe what they're saying."

Ikea country manager David Hood said the company would work with the government to adjust to any potential delays and said "the optimum" would be that the road was completed or near completion before the store opened.

"Whether that comes around completely at the same time remains to be seen but I don't think it will be too far beyond the time we are proposing to open,'' Mr Hood said.

"It would be fantastic, of course, if that was well under way. It's a major factor as to why we chose this site, the connections are tremendous in terms of getting in and out of the city.''

Ikea's impending arrival, first reported by The Canberra Times, will end the need for more than 22,000 Canberrans to travel up the Hume Highway to Sydney's two stores.

Canberra's Ikea will be a 25,800-square-metre single-level building. While smaller than the Sydney stores, it will offer a full range of products. Its planned construction was one of three announced by the company. It is also building a third store in Melbourne and a second in Brisbane.

Recruitment for the expected workforce of 250 will begin within the next few months, while Mr Hood said the ACT's industry would benefit throughout the construction project, with an estimated 200 to 250 jobs required at the project's peak. It was announced late on Thursday afternoon that construction company Hindmarsh had been appointed to the project.

Mr Hood hoped Ikea's investment into the capital would help inject some confidence amid what he acknowledged was a mood of "doom and gloom'' before next week's federal budget.

"We can't control what the government does, but we can control what we will do and we'll do everything we can to be an integral part of the community,'' Mr Hood said.