The upgrade of Gingers Lane at Weston has entered its third stage, with work now underway between Woodlands Drive and Stringybark Place.
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The four-stage project is now expected to be finished by March 2021, after it experienced some "unavoidable delays".
The work began in November last year and was expected, at the time, to take 12 months.
"This project has not been without its challenges and hurdles, including unsuitable ground conditions, catastrophic fire conditions, higher than average rainfall through winter, and resourcing issues due to COVID-19," Cessnock City Council general manager Lotta Jackson said.
Ms Jackson said she understands the impact this project has had on many local residents, and thanked the community for their cooperation and patience.
Formerly a quiet country road, Gingers Lane has become a popular shortcut to the Hunter Expressway since it opened in 2014.
The upgrade will include road pavement improvements, road widening, kerb and gutter installation, drainage upgrades, road safety barriers, turning lanes and service relocations, and a new roundabout at the intersection of Hart Road.
Detours are in place via Frame Drive and Sawyers Gully Road as the staged construction progresses.
The project is jointly funded by the NSW Government's Restart NSW Fixing Country Roads program, Transport for NSW and Cessnock City Council.