Construction of Googong Public School has been marred by a pay dispute involving a subcontractor.
On Monday morning a group of subcontractors held signs which said "Googong School pay our money" near the construction site.
A spokeswoman for the Department of Education said it was a dispute between the contractor and a subcontractor.
"The Department of Education is aware of the matter regarding the private subcontractor payment," the spokeswoman said.
"The dispute is between the contractor and the subcontractor. Our payments are up to date and any inference that it's the Department of Education missed payment is misleading and incorrect."
A statement on the Googong Public School Facebook page said the contractor "is committed to working with the sub-contractor and workers involved to resolve the issue as swiftly as possible".
However, a spokeswoman for the contractor, Hansen Yuncken, said the issue was between a subcontractor and its workers.
"We understand an issue has been raised by a subcontractor's workers on the project," the spokeswoman said.
"Hansen Yuncken has made all appropriate payments and is requesting clarification from the subcontractor involved."
She said construction on the primary school was continuing as normal.
The new primary school is being built to accommodate up to 700 students and promises to have a well-resourced library, multipurpose sports courts, outdoor learning and play areas and air-conditioned learning spaces.
It is set to open for the beginning of the 2023 school year.
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