The intersection is one of the busiest in town and the one which sees the highest volume of traffic in Calala.

As a result, both lanes of Calala Lane will remain open during peak traffic periods, although a part of Campbell Road will be closed intermittently throughout construction, with vehicles to be diverted through Osprey Way.

Tamworth Regional Council (TRC) is urging road users to show patience and allow extra time when using the roads, but cannot provide an estimate of how long delays may take.

The school crossing between Calala Lane, Campbell Road and Boronia Avenue will be temporarily relocated throughout the works, and will remain supervised at the appropriate times.

The bus stop outside Calala Inn will be moved closer to Osprey Way, while pedestrians will be diverted around the construction site.

Some footpaths will me moved but reinstated following the end of the project, which after originally being touted for August, is now scheduled for September.

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Speed limits will be reduced to 40km/h throughout the area where roadworks are taking place.

A spokesperson for TRC said access to nearby shopping centres "will be maintained at all times".

On Tuesday, TRC director of regional services, Peter Resch, explained why the budget had ballooned out from $800,000 to $1.4 million.

"The budget was set in 2013 ... that was an early estimate done, it was done to facilitate a section 94 plan which involved contributions from developers," he said.

"That's a little bit of a tricky situation in terms of you haven't got a design, we probably based it on a roundabout we built at the time.

"But since you do the design you know where utilities had to be relocated, what land acquisitions are required, shared paths and extra infrastructure and then you get a better handle of the design."

He also spoke about the decision to make the intersection a roundabout as opposed to traffic lights, which is something some locals had said was their preferred option.

"Transport for NSW have warrants in relation to traffic lights, the warrants are based on vehicle numbers and pedestrian numbers and if you don't meet those warrants then you won't get approval to put traffic lights in," he said.

Not meeting the criteria for a warrant is the same reason the school crossing is only being upgraded, instead of being turned into a pedestrian crossing.

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