The Riverhaven Motel, and associated buildings, including the former restaurant and indoor pool building, have been demolished.

All that is left is the shell of the 12.5 metre former heated pool.

Crews from Fulton Hogan, who have been awarded the contract to design and construct the new bridge, have started the demolition work.

The new bridge, which will be to the west of the current northbound concrete bridge, will also be coming through that area as well as Moorhouse Park before rejoining the highway.

Fulton Hogan will also utilise the site during the bridge construction period.

The historic M & M's Guesthouse buildings are still standing, with work expected to start on their demolition this week.

The guesthouse was originally located at Culburra Beach for many years, known as Culburra House.

A feature of the property was also a round rock "moon gate" which still remains on the site at Culburra.

The building was physically shifted into Nowra in 10 loads in September 1953, where it was transformed into the Riverhaven Guest House (and later part of the motel).

In recent years the complex has fallen into disrepair and become a haven for homeless people and been the scene of a number of fires, the latest in November last year.

Work has also started on Illaroo Road with Fulton Hogan crews beginning the demolition on a number of houses which will also be removed as part of the project.

Around a dozen homes on the northern side of Illaroo Road will also be demolished to allow for a permanent left-hand turn lane onto the highway as part of the associated intersection upgrades with the bridge project.

The homes have been surrounded by security fencing for a number of weeks, with demolition work now underway.