Contract for major works awarded as part of $164 million project

But while work is due to start before the end of the month, it is expected to take four years to complete.

The $164 million project is jointly funded by the Australian and NSW governments, and Federal Member for Gilmore, Fiona Phillips, said the upgraded intersection would include roundabouts on either side of Jervis Bay Road, "reducing the likelihood of crashes and providing safer, reliable and congestion-free connectivity for all road users".

It will also include two lanes in each direction of the Princes Highway, longer entry and exit lanes, and free-flow traffic access north and south.

Bus bays, car parking, a kiss-and-ride facility, bicycle racks, bus shelters and shared path connections will also be built as part of a multi-modal facility that will form part of the upgraded intersection.

"It's great to see community feedback has been incorporated into the final design, with western entry and exit lanes and a roundabout connecting the Old Princes Highway a direct result of that feedback." Mrs Phillips said.

"The design has also been enhanced to include improved connectivity options for wildlife."

State Member for South Coast Liza Butler said the upgrade was vital as the intersection was "extremely dangerous - we've seen 15 accidents over the last five years, and six of those were serious".

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"This intersection is the most heavily-used intersection between Nowra and the Victorian border," Ms Butler said.

"Every holiday season we see a line of traffic going back nearly all the way to Huskisson, waiting to get out of this dangerous intersection."

Ms Butler said she was "very pleased" to see work on the intersection ramping up.

Federal Transport and Infrastructure Minister Catherine King said the contract would allow work on the intersection to "forge ahead" after enabling works were completed earlier in the year.

She said crashes at the location had resulted in six serious and 11 minor injuries in the past five years.

"The work we're funding will help save lives and reduce crashes," Ms King said.

NSW Regional Transport and Roads Minister Jenny Aitchison described the intersection upgrade as a "game-changer for motorists and communities on the South Coast".

"The upgraded intersection includes an overpass bridge for highway traffic to safely cross Jervis Bay Road and it will also allow road users on Jervis Bay Road to turn north on the Princes Highway without being held up by highway traffic," she said.