It is the first time an award in the up to $5 million renovation/extension category has been presented to a project outside a metropolitan area.

The redevelopment was carried out by Mick Fabar Constructions from a plan by Craig McKinnon Design.

The project involved replacing most of the original 1970s building and increasing its size by about 300 per cent.

The new building in William Street includes a chapel that can seat 300 people.

Mr Fabar said it was a challenging project but the finished product and the award made it worthwhile.

"One of the biggest parameters we had to work around was that Norm and Deirdre Penhall needed to operate their business out of here while the work was being done.

"We had all sorts of issues, not only OH & S, but also with a code of conduct between the workers and grieving families. The style of the finish had to match part of the existing building and be taken through to a more contemporary finish. And we went through and made sure the finishes were second to none, which really won the award," he said.

"It was the tradesmen, us and the designer who won the award and they're all from Orange."

Master Builders Association judges visited the building on two occasions.

Mrs Penhall described the renovation as wonderful. "It has made it [the premises] a much more workable situation. It was time for a change. It was built in the '70s and it was really time for a change," she said.