The directors wasted no time in preparing for construction, and a contract was awarded to S Pearson and Sons on 27 July 1900. However, after a few months Pearson and Sons were complaining that they had not yet had instructions to proceed; this seems to have been due to a delay in securing subscribed capital. At a board meeting on 23 November 1901, the engineers explained that there was difficulty in making the line near the River Blyth at Halesworth, and a deviation was recommended. The company's bankers were asked to give an overdraft of £1,000 to pay for additional surveys, pending the issue of shares. In fact it was not until December 1901 that a prospectus was published for the share issue. The tone of the document made it clear that this was no rural backwater branch, but that the Company saw its line as an integral part of the long-distance network of the country. Half the share capital was being offered now as ordinary shares, with the second half to be issued later as preference shares. S Pearson and Sons resigned from the contract at this stage, evidently frustrated at the lack of action by the Company, and S Jackson of London was appointed instead. The first sod was cut on 3 May 1902 in a field at Westerfield; "no expense was spared" despite the company's financial problems; 600 guests attended for a sumptuous luncheon, many brought in by special trains; the 83-year-old
Duke of Cambridge performed the ceremony. On 22 July 1902, a further overdraft was agreed with the bank: £15,000 this time. Several more were to follow. On 22 September 1902
Lord Kitchener, the hero of
Khartoum, had received the Freedom of Ipswich and the following day he visited Mr Chevallier at
Aspall Hall. As the line was substantially complete from Haughley to
Mendlesham, Kitchener was conveyed on the line in the contractor's wagon, afterwards continuing by motor car, one of the first in the district, following the planned route. At an Annual General Meeting in August 1903 it was announced that further overdrafts had been taken due to poor take-up of the preference shares. Westerfield was now favoured as the priority for opening, as it was now hoped that residential traffic could be generated there.
Steam railcars had been introduced by the
London and South Western Railway and this system appeared to offer a major benefit in technical and business terms. At the end of 1903 the Company's financial position was becoming obviously unsustainable, yet when the bankers stated that no further overdraft facility would be available, the directors were said to be surprised at the news. The Treasury informed the railway company in April 1904 that they would advance £25,000 as a grant, provided East Suffolk County Council advanced a similar sum, but the County Council refused. Discussions with the GER over the configuration of the junctions appeared to have been concluded, but an enquiry about the use of Haughley GER station resulted in a demand for a rental which the MSLR considered unaffordable. It took until February 1905 for the proposed deviation at Halesworth to be agreed by the Commissioners, due to delay by the Mid-Suffolk company in submitting definite proposals. Even then there was a dispute over the steep gradient on which train marshalling would have to take place, and interference between the MSLR and GER traffic during the process. ==Opening==