Repair of a city surface parking lot on King Street will cost the city up to $480,000, officials said.
Thomas Construction had the low bid of $440,000, with a $40,000 contingency.
The lot is adjacent to a project underway by developer Hiren Desai. There has been a problem of water running from the city lot onto the Desai building.
The work will include fixing the water runoff issue and redeveloping the parking lot, which is used by city employees.
The city at one time was considering selling the lot to developer Desai, but that was withdrawn.