Construction of temporary traffic lights and a new bus lane at the northern side of Vernon Circle is expected to commence on Monday, as work begins on one of the most significant city infrastructure projects in six decades.

A new footpath and pedestrian signals on City Hill between Constitution Avenue and Edinburgh Avenue are also being installed to provide pedestrian links across the city during construction.

The lights are being put in place to support safe movements as construction begins on raising London Circuit as part of the ACT government's plan to extend the light rail to Woden.

Once the traffic lights are installed, crews will start building up the road on London Circuit between Constitution Avenue and Edinburgh Avenue to create a new intersection level with Commonwealth Avenue.

The work will return the intersection to how it was originally laid out before the bridges over London Circuit were installed in the late 1960s.

Work to build the new City Hill footpath, install traffic lights and have a new bus lane is expected to take between eight and 12 weeks.

ACT Chief Minister Andrew Barr said the project would support hundreds of jobs and enable thousands more "as we get to work on building the important infrastructure our growing city needs".

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"Connecting London Circuit to Commonwealth Avenue is a significant step forward for light rail, activating the southern part of Canberra's CBD, Canberra Theatre precinct and providing better connections to the Acton Waterfront," he said.

Commuters who travel into the city by car are expected to face a number of challenges including the availability of car parks in the city, which have already been reduced.

From the City Hill car park, 330 of the 650 car parks will be closed when construction begins on Monday.

The government has also shut 165 spaces at its 41 Marcus Clarke Street car park last week and the Acton Waterfront.

The south-west corner carparks of London Circuit are also expected to shut access in the coming months.

Overall the government will close or change access to 665 of the 14,250 parking spaces available in the city centre as more work sites are set up.

Bus services will return to a full timetable from the beginning of term 1, 2023 but transport authorities expect a four-minute delay to buses heading from Woden into the city centre due to the construction work.

The interim bus timetable has been in place since the lockdown in August 2021 and has run in a modified form since January 31.

Work has also begun on a temporary bus interchange at Woden as the old interchange will be demolished next year for a new Canberra Institute of Technology campus to be built in its place.

The government will continue encouraging the community to rethink their travel behaviour and consider when and how they travel into the city, particularly during the morning peak.

ACT Transport Minister Chris Steel said the project would help Canberra to grow as a sustainable and connected city.

"We are not only building the platform for the light rail to turn from London Circuit onto Commonwealth Avenue, but removing barriers for cyclists and pedestrians moving through the southern part of the city," he said.

Canberrans are encouraged to sign up to receive regular email updates on the changing conditions and alternative travel options.

Details on upcoming traffic and parking changes can be found at builtforCBR.act.gov.au/travel-impacts.

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