LEND Lease is the preferred tenderer for a $500 million upgrade of part of the Pacific Highway on NSW's north coast.

Lend Lease's Abigroup subsidiary will commence work on the Nambucca to Urunga upgrade project, ahead of the finalisation of the main contract in the first quarter of 2013, Lend Lease said today.

The project involves the design and construction of 22km of dual-carriageway between Nambucca Heads and Urunga, and is due to be completed at the end of calendar 2015.