The new Clarence Town bridge is expected to be finished in 2026, Dungog council has confirmed.
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A contractor will be locked in by the end of this year and construction will begin in 2025.
Dungog mayor John Connors confirmed there is a contingency plan in place if the cost of the bridge exceeds the $20.6 million that has been allocated, but he thought that scenario was unlikely.
He said recent trends with these kind of projects showed that the overall cost was less than the allocated amount.
"Recent tenders seem to be coming in lower than budget rather than continuing the escalation," he said.
If the project did go over budget Cr Connors said the council would go back to the state and federal governments and ask for the shortfall.
The council will put measures in place to limit the closure of the Brig O'Johnston Bridge while the new one is being built.
The new bridge will be 20 metres north of the historic structure but they share the same access road.
Limeburners Creek Road will be extended to create the approach to the new bridge and this could disrupt access to the existing bridge.
Council's infrastructure and assets manager Steve Hitchens said there will be penalties included within the contract if the contractor limits access to the existing bridge.
The confirmation came during a community meeting on Wednesday after residents expressed concerns about making the detour.
Residents previously told the Chronicle the detour around the Brig O'Johnston Bridge took half an hour and normally the trip into Clarence Town took less than 10 minutes.
More than 80 residents attended the community meeting to find out more about the project.
Project manager Nick Havyatt said the council had money in a contingency fund for unexpected costs.
The new bridge will be 135 metres long and 8.8 metres wide. It will cater for heavy vehicles up to 68 tonnes, which is more than double the load capacity of the existing bridge. It will also cater for over-width vehicles.
This means heavier vehicles won't have to make the 52 kilometre detour around the river crossing.
The council has acknowledged the construction will have an impact on the Clarence Town community. It has come up with a range of solutions to problems that might eventuate. These include construction traffic, noise and dust pollution, and the risk of flooding.
