The City of Greater Bendigo city futures director was at the project site on Thursday afternoon watching workers attaching Ironbark sticks to the exterior of the new Pavilion Gallery.

"We're extremely proud of what we've designed and of what we're building," he said.

"It's a great project that is exciting for Bendigo."

Mr Liacos said the 56 Ironbark sticks would create a unique link between the new building and neighbouring Rosalind Park.

Mr Liacos said the Ironbark sticks were an important design feature of the project.

“Bendigo is known for its Ironbark forests and the sticks have been produced from recycled Ironbark that was reclaimed from a former wharf in Melbourne Docklands precinct," he said.

“The recycled wharf timber was considered perfect because of its long length and interesting history and when the aged timber was machined its hidden beauty was revealed.

“This work is being undertaken by local Fyerstown company, Pumphouse Design and Building Works.

"All up the timber has taken three months to restore and a further four weeks to install on the Pavilion Gallery,” he said.

Mr Liacos said the Bendigo Art Gallery Extension Project was in on track.

"We're in the final stages of this development," he said.

"We're on track to finish the building early next year.

"The target date is February 1.

"But then we'll need several weeks to commission the new building, fit it out and we're looking at this stage at a March opening.

"We're running delightfully on budget."

The project is being funded by a $3.775 million contribution from the Victorian Government and a $3.625 million contribution from the City of Greater Bendigo.

A further $1 million has been contributed by the Bendigo Art Gallery Board/Philanthropic.