Conservation works at the Creswick Town Hall could be delayed by about three months after the project failed to attract building contractors.
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The Hepburn Shire Council was expected to make a decision on the company which will complete the upgrade works at its May meeting.
However, the council did not receive any submissions for the tender, which was first advertised in April.
Hepburn Shire Council chief executive officer Bradley Thomas said this was largely due to the high demand for builders and the current volume of projects across Victoria.
"It's so tough at the moment, it's not just councils. I know people in their private lives are trying to get builders and tradespeople. There is a real shortage," Mr Thomas said.
"We are confident (of securing a contractor). We are still really committed to the project but it's disappointing there will be some delays. There is nothing else we can do. We just have to go back through this process."
As the council has had to readvertised the tender for the upgrade works, Mr Thomas said there would be a delay of about three months before the project could start.
He said the tender would be advertised for a longer period of six weeks to allow tenderers more time to liaise with sub-contractors and make a submission.
Council officers will then have to review the submissions before it goes before councillors at a monthly meeting.
Mr Thomas said the council had seen a decrease in tender submissions over the past 18 months.
"We are seeing it more and more. Civil and road submissions are still not too bad, but building is a very difficult market at the moment," he said.
The council secured $500,000 state government funding to complete improvements to the 146-year-old town hall building last year.
The council will contribute $148,000 to the upgrade project.
Works will include repairs and painting to the facade, windows and doors, general repairs focusing on eliminating water ingress, masonry and crash repairs and creating a compliant all-abilities entrance.The roof will be updated and the flagpole replaced.
The scope of works was determined through a condition report commissioned in 2019, with detailed designs completed in the lead up to the tender process.
Creswick Town Hall was opened in 1876, with the building design the subject of an architectural competition.
It is listed on the Victorian Heritage Register for its architectural and historical significance.
While it waits for the upgrade works, the Creswick Town Hall will remain open for bookings on an as-need basis.
Tenders will close at 2pm on July 26. The council will release details on the works program once the tender is awarded.
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