Broad Construction Services has been awarded the main works contract and the state government has boosted the redevelopment budget from $79.8 million to $91 million.

The major component of the main works is a new building from where maternity and surgical services will be delivered to the region.

Early works, starting in late 2012, have included the demolition of old buildings and the clearing of a site at the eastern side of the hospital campus for the state-of-the-art "acute services" facility.

It is expected to be completed late next year, with associated refurbishment projects within the existing hospital to follow.

They include improvements to the its renal dialysis unit and main entrance.

NSW Health Minister Jillian Skinner and State Member for Dubbo Troy Grant have provided the details of the "major milestone" of stage one and two redevelopment.

They said the increase in the budget to $91 million would allow "100 per cent of the promised scope for the project to be delivered for the benefit of the Dubbo region". 

The new estimated total cost reflected the voluntary administration of initial early works contractor, National Buildplan Group, and

higher than expected main works prices received from the market.