A symbolic sod turning was conducted on Friday morning with Western NSW parlimentary secretary Rick Colless, Nationals candidate for Orange Kate Hazelton, member for Calare Andrew Gee and Orange City Council.

Contractor Haslin Constructions has been on site since early February, demolishing a warehouse, cleaning up the site and starting grading work for the 720-metre stretch of road.

The project stretch from Huntley Road to Elsham Avenue, including a 23-metre bridge over the railway line, will cost $18.4 million, with completion expected in late November.

Haslin general manager Gladys Woods said the site started as a mess, with a number of rocks to clear.

"The earthworks contractor's come in and the initial grading has been completed," she said.

"In a month, a lot has happened."

Mrs Woods said Haslin was confident it could work through Orange's bitterly cold winter conditions after completing another project near Parkes in similar conditions.

"The only thing that will affect it is rain, but it's been so dry," she said. 

She said the main challenge was avoiding major power and NBN infrastructure, which ran all the way to Cadia Valley Operations, and careful surveying had been done. 

Deputy mayor Sam Romano said once the full link was completed, traffic travelling from the west would not have to travel through Orange to access the industrial area. 

"It will be a ring road right around Orange," he said. 

The federal government has already given $6.4 million to stages two and three, which will take the road from Elsham Road to the Mitchell Highway, the state government has contributed $11.8 million and Orange City Council will put forward the remaining $5.8 million. 

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