A $3.1 million contract has been awarded to Fulton Hogan by the New Zealand Transport Agency for a major project through the centre of Oamaru.
At the same time, the agency has listened to Oamaru people worried about losing car parks in the centre of Thames St.
The safety upgrade of State Highway 1 is between the Thames-Coquet-Severn Sts intersection and Orwell St and the work will include eight more car parks in the central median than had originally been planned for.
Regional projects manager Simon Underwood said the extra car parks were in response to local business concerns.
The project is aimed at reducing the number of crashes - about 20 a year - on this length of highway.
Traffic signals at the five key intersections improve traffic safety, and co-ordination of the traffic signals will ensure reasonably smooth flow of traffic.
Part of the project is shifting the Boer War monument at the Thames-Coquet-Severn Sts intersection.
Most of the Siberian elm trees which needed to be removed to accommodate the work have been shifted to a nursery and will be replanted once the project is finished.
Work on the overall project is expected to be completed by April.
