There's concern over Falcon Real Estate's commitment to the North Quays project.
The developer has until the 15th May to sign the contract for the multimillion euro regeneration.
However city councillor Jason Murphy is concerned by what he calls the "silence" coming from Falcon in recent months.
"The worry we all have is that we're in a different place to when this investment was first announced," he said.
"Covid has changed everything and that has lead to some amount of worry whether this funding would be forthcoming.
"Falcon Real Estate and their representatives here in Waterford had been very vocal up until the point where the government announced funding for the project and since then . . . there seems to be a lot of silence coming from that aspect of the development."
The company is part of the Fawaz Alhokair Group, a major Saudi retail & shopping centres operator.
Cllr Murphy said he was unsure whether there is a back-up plan in case the North Quays developer pulls out out of the project.
He added that he it would be "an act of bad faith" if the council had other plans while negotiations are ongoing with Falcon, but said: "I as a public representative would be slightly concerned at the level of engagement from Falcon over the last couple of months."
A spokesperson for Falcon declined to comment.
In a short statement from Waterford City and County Council, the local authority confirmed contracts are due to be completed by mid-May.
"Formal contracts are due to be completed by Falcon Real Estate Developers on or before 15th May 2021. We are unable to comment further at this time," a spokeswoman said.
