The West Tamar Council will vote on a contractor to undertake the upgrades to the corner of Cleghorn Avenue and Eden Street opposite Riverside Primary School at its November meeting.
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The project was aimed at making the intersection safer for pedestrians to cross and greater visibility for drivers.
Two contractors submitted tenders for the project: The Baker group at about $390,000 and Streetwise Development at about $502,000.
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The tender review committee determined the Baker Group as the preferred choice of contractor for the works.
The report also noted the Baker Group was chosen due to work in the municipality in the past that yielded positive feedback from residents.
This, however, leaves the project's budget with about a $66,000 shortfall due to expenses already eating in to the allocated funding.
The recommendation of the report was to accept the tender from the Baker Group and accept the shortfall from the capital budget.