WORK has resumed on the $23.5 million Newcastle Museum development after a week's stoppage to assess archaeological finds at the Honeysuckle site.
Developer Newcastle City Council ceased building early last week after making the discoveries.
The finds included parts of old railway lines and bricks, which had to be photographed, recorded and undergo an archaeologist's assessment.
Work halted until the NSW Department of Planning and Heritage Branch gave the all-clear at lunch yesterday.
The museum will be housed in three heritage railway workshops at Honeysuckle and is scheduled to open in May, 2011.
Building started in late April.
Museum redevelopment senior project manager Fiona Leatham said the heritage site had some sensitivities.
"We've called in an archaeologist to give us some advice," she said.
"In order to follow the process completely, we did cease work.
"Just to make sure, because it's a sensitive site."
Ms Leatham said the delay did not affect the project schedule.
June and July were expected to be busy months with visible progress, she said.
Sydney-based ISIS Group is undertaking the $10 million museum contract. Fit-outs of exhibition space and a cafe are scheduled in a separate project after the railway workshops' refurbishment was complete.