The construction of the multipurpose hall on Fallon Street is on track to be ready for students in term three this year.

A NSW Department of Education spokesperson said the new build, being constructed by Albury-based business Zauner Construction, is "progressing well"

"The project to deliver a new multipurpose hall at James Fallon High School is on target for completion during term three this year," a statement said.

"The upgrade will deliver a new air conditioned multipurpose facility for performance, sport and presentations, with capacity seating for 850 people.

"Works will continue during the current school holidays to complete the steel structural work and continue the fit-out of the new building."

Contractors have had to abide by COVID-19 health restrictions on site but the spokesperson said this isn't holding up their timeline.

"The Department of Education is working with the construction contractor at James Fallon High School and contractors at other school infrastructure projects across the state to ensure that work is conducted in strict accordance with the rules set out in the NSW Public Health (COVID-19 Gatherings) Order 2020," a statement said.

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"The contractor has been instructed to update their Work Health Safety Management Plan in response to the COVID-19 pandemic. The plan includes guidelines for attendance, work and social distancing on site.

"The plan also applies to all sub-contractors on site."

The hall will include an open foyer space with separate amenities and kitchen space, seating capacity of 850 people, including retractable tiered seating for 300 people, a demountable stage and curtains as well as a stage lighting bar with some stage lighting and an AV system.

There will also be line markings for basketball, netball and volleyball, back-of-house amenities including toilets, a shower and change rooms, storage for sports equipment, performance equipment and a first aid room.

Along with the new hall, the high school will also get a covered outdoor learning area, new front fencing for the school, new landscape works adjacent to the hall and a shared pedestrian and vehicle zone.

As part of the COVID-19 new rules department construction sites can operate on weekends and public holidays during the pandemic.

"This will allow workers on construction sites to abide by social distancing rules by distributing building work across the entire week," the spokesperson said.