The Cineworld complex has been found to be 75cm out of place prompting complaints from local residents.
Britannia has blamed the design consultants for the mistake
Work has been under way on the Rowley Arts Centre site in St Neots since November.
Rebuilding work could cost up to £1m and will delay the completion date from September to January 2014.
Chris Goldsmith, from the developers Turnstone Estates told the BBC: “We have taken the unprecedented step of halting the existing work and having parts rebuilt to assuage any concerns that adjoining landowners may have.
“Although we are only talking about a few centimetres, we believe this is the best solution for all concerned and avoid further delay of these much wanted facilities.”
Paul Halfpenny, of Britannia Construction, said: “This situation results from an error in design information provided to us by our lead design consultant.
“This inaccuracy, which was present from the earliest stages of the scheme, sadly wasn’t picked up by any members of the client, design or construction teams.
“As soon as the miscalculation was identified we have dealt quickly and efficiently to ensure that our client’s instructions are fully complied with, along with our contractual obligations to discharge in accordance with the planning consent.”
Local residents have complained about the proximity of the site