The leader of Liverpool City Council has apologised to businesses which claim roadworks have hit profits.
Improvement work began on the junction of Prescot Road and St Oswald Street in Old Swan, involving a temporary five-way traffic light system, last month.
An Old Swan Business Association survey revealed that firms experienced a fall in trade of between 10% and 60% as a result of ensuing traffic problems.
Council leader Joe Anderson said they would be compensated by the council.
"I'm disappointed with the way it's been handled to be frank. That's why I've made an apology," he told the BBC.
"I think if the council get things wrong we should be the first to admit it and say we've got it wrong.
"My view is that when you see businesses losing money, when you see the disruption and the chaos within that particular area, then you have to hold your hands up and say 'well something wasn't as good as it should have been'."
Mr Anderson said he had ordered an inquiry into the disruption and would be "asking some serious questions to ensure it doesn't happen again".
In the meantime, council valuation officers are visiting affected businesses to work out if they can be compensated through business rates rebates.
"It's my intention to make sure that these businesses don't miss out financially. I think that's the least we can do," he added.