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The project, which started in September last year, was expected to be completed by September this year, principal Sarah Graham said.
She could not confirm how much the project would cost; however, The Terrace School has been allocated $266,805 from the Government as part of an initiative to help modernise schools.
So far everything was going to plan.
"We’re very excited," she said.
"One of the things we are really excited about is that it will mean we will have a real presence in the front of the school."
The current administration block is a short walk from the main entrance and the existing technology centre is no longer fit for purpose.
Both existing buildings will be demolished and in part of one of those areas a staff car park will be reinstated, Ms Graham said.
Government funding to modernise schools was announced by Minister of Education Chris Hipkins in September last year.
A range of schools from Central Otago and Queenstown Lakes are on that list, including Hawea Flat School, which has been allocated $159,390.
Shotover Primary School will receive six new classrooms for 132 pupils, both Alexandra School and Hawea Flat School at Wanaka will get four new classrooms for 88 pupils apiece, and both Garston School and Cromwell Primary School will get three new classrooms providing an additional 66 student places each.
Wanaka is also home to a new $16million primary school Te Kura O Take Karara, which opened in time for the new school year.
However, none of the funding announced by Mr Hipkins in September went towards the build.