Students and teachers have been without one third of their space for the past year after older classrooms were demolished to make way for the new building.

And officials from the regional education office refused a request from the town's cricket club to relocate the old classrooms for free so they could use them as a club house.

The revelations come in a submission to a state parliamentary inquiry into the federal government's Building the Education Revolution (BER) stimulus package.

They follow claims by the company that won the bulk of the district's projects that schools would have gained much better value for money if the work was properly planned.

BDH Constructions says the program should have also included a compulsory requirement for contractors to train apprentices.

Dunkeld Consolidated Primary School president Simon Cullinane has told the inquiry it was "somewhat embarrassing" explaining to the community that a perfectly good building had to be demolished instead of relocated.

"I have found it awkward being president of the school council whilst maintaining friendships with local tradesmen, even though all of this is out of my control," Mr Cullinane says in his submission.

The school council originally chose a new building after looking at several designs provided by the Education Department, but months later was told the cost of the project was more expensive than first thought.

Mr Cullinane says two local builders and a plumber were guaranteed work of up to 120 days on the construction of the new building which was due to start last September.

"These tradesmen have not quoted on any major works since July last year in anticipation of starting this major project for the school.

"We have now been informed that our choice of building looks to be a modular portable building that will be trucked to the site and installed.