The £1.75 million scheme is being carried out by Andrew Sinclair Ltd and is expected to take 10 months to complete.
As part of the project, the council has announced the Shore Street car park will shut for around 10 weeks starting on 01 June. The closure will allow the next phase of the flood prevention project to begin around the Kirkwall Pier entrance and the Shore Street car park.
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The council's Head of Infrastructure, Darren Richardson, said: "A number of options have been discussed with our Roads and Marine Services teams and the contractors involved. This option avoids the need for temporary traffic lights in the area.
"We want to keep traffic flowing as much as possible, particularly with the ambulance station based nearby. It will involve some inconvenience for some people for a period of time. We apologise in advance for this and ask drivers for their cooperation."
Mr Richardson added while construction is ongoing, two new disabled parking spaces will be created in the car park.
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