A $162,901 project budget boost paves the way for Port Macquarie-Hastings Council to call tenders for the long awaited building overhaul.

The dilapidated building contains toilets and changing areas, a kiosk and Marine Rescue Port Macquarie radio base.

The upgrade will address structural problems and provide better facilities for Marine Rescue Port Macquarie, lifeguards and the general public.

The project will go out to tender on April 30 for a month.

Subject to adoption by council, it is anticipated the work will be completed by the end of the year.

Marine Rescue Port Macquarie spokesman Geoff Shelton said the group was looking forward to the upgrade starting.

"It is fantastic it is going ahead and we can't wait," he said. Marine Rescue Port Macquarie will meet fit-out costs of the upgraded communications room.

Mr Shelton said the group was confident it could cover the fit-out costs.

The group's kitty includes $40,000 through state government's Community Building Partnership program and more than $30,000 raised in a raffle.

Mayor Peter Besseling said Marine Rescue would be happy with the increased budget which would deal with their further requirements.

"I think it is important that we do move forward and get to the next point, which is putting it out for tender, getting the tender back, accepting the tender and then building," he said.

The council business paper said through the design process, the Marine Rescue Port Macquarie requirements had increased to include internal stairs.

That pushed up the costs.

Port Macquarie-Hastings Council added $162,901 to the project budget to reflect the changes as a result of detailed design discussions.

The council had previously allocated funds to the project.

The costs escalated for several reasons including design costs exceeding expectations, a 10 per cent estimated construction cost increase since mid-2013 and a five per cent increase in the construction contingency allowance.

The project has a revised cost estimate of $427,600 including expenditure to date.

The council will launch an expression of interest to manage the Town Beach kiosk when the upgrade is complete.

lisa.tisdell@fairfaxmedia.com.au