The intersection was identified as "high risk" along with the SH2/Watchman Rd section, as well as SH2/Napier Rd, and is part of a three-year $60 million safety improvement programme which got under way in 2015.
The intersections had been listed as "priority" works with $13.4 million being allocated for them.
A NZTA spokesperson said they were being designed with the aim of reducing the risk and severity of crashes.
"It is forecast that the improvements could potentially prevent up to three deaths or serious injuries in the region per year."
Across New Zealand around $3.2 billion is expected to be invested in the transport network over the next three years to improve safety.
A proportion of the investment targets specific safety improvements including high risk intersections, pedestrian and cycling safety initiatives, speed management and education programmes.
Roadside power pole work is also under way on SH50 between Maraekakaho Rd and Kereru Rd with Unison crews replacing a section of them.
Some slight delays can be expected at times.
Delays are also likely on SH5 between Tarawera and Eskdale where slip removal work is continuing to remove debris from roadside berms and water tables.
There was still "quite a quantity" of slip removal work taking place on SH38 through to Waikaremoana with speed restrictions in place as well as stop/go signalling.
Travel delays up to five minutes can be expected.