During work on the Hawk’s Nest portion, a deep fissure in the mountain was discovered. The crack was about a foot and a half wide and went deep into the mountain. Rumors circulated predicting the face of Hawk’s Nest would fall into the river. Various suggestions to deal with this problem were put forth but it was decided to build the road over the fissure. By the fall of 1933, the Hawk’s Nest section was nearing completion. The project included the construction of six “bay windows,” as the scenic overlooks were called, on the river side of the highway. The largest was to be near the old lookout at the foot of the Hawk’s Nest. The new entrance to this section from Sparrowbush replaced the winding and indirect route of the old road, removing many of its dangerous and sharp curves. The bridge crossing the Mongaup River also had been built. All of the materials used in the construction had been supplied locally. Of particular interest was the fact that the contractor had used gasoline-powered equipment in lieu of steam power.

In December 1933, the segment of the road crossing the Hawk’s Nest was unofficially opened. Although the highway was not complete, the state highway department and the contractor, Miller Brothers Construction, allowed the road to be opened if drivers would maintain the 20-mile-per-hour speed limit. The old, one-lane, dirt road that this replaced had probably been built as early as 1859 and had been the main artery between Port Jervis and Sullivan County.

During the construction of the entire length of the highway along the Delaware River, only one construction fatality occurred. In November 1933, Samuel Smirch, 21, a laborer employed on the section between Barryville and Minisink Ford was killed when a tree fell on him while clearing right-of-way. Another worker was badly injured.