The first sleepers are being laid by Fulton Hogan as part of works for the City of Ballarat to restore its historic tramway.
Fulton Hogan will re-lay around 300 metres of the oldest section of the historic tram tracks around Lake Wendouree.
The section being upgraded dates back as far as 1905 and once featured horse-drawn trams along the route.
The trams have been a regular feature in the area since the tracks were first installed in the late 19th century.
The track carries more than 30,000 passengers a year. This particular section had deteriorated to a point where the popular restaurant car could not operate on the affected section.
Fulton Hogan worked with the City of Ballarat and the Ballarat Tramway Museum to choose the most suitable materials for the heritage project.
Concrete was chosen over timber as it best suited the challenging preservation conditions around the lake.
Works are expected to take around a month to complete and are on schedule.