BUILDING began this week on the old cinema site next to Malmesbury Abbey after work was stopped when more than 20 medieval skeletons were found.
The work being carried out by Chase Homes was halted for seven weeks after a workman uncovered the bones with a mechanical digger.
Chase Homes chairman, Chris Kent, said: "We have now cleared the area and from the beginning of this week we will be working on the site.
"All the bodies have been sent off for analysis and we will not be sure as to the number of bodies or their origin until we get back the results.
"The archaeologists will advise us on how we should deal with the remains."
Although the building of three new town houses had completely stopped during the dig, Mr Kent hopes to make up lost time.
"We have lost about seven weeks of work but by working hard and adding men I am confident we can make up the lost time," he said.
The skeletons were examined at the beginning of July when a skull was seen by an archaeologist already on site. He was asked to be present because of the building location next to Malmesbury Abbey.
After delicate excavations, three skeletons were unearthed and later a skull, found several yards away opposite Peter Scott bookmakers, behind the Market Cross.
A further 20 bodies were discovered two weeks later as the archaeologists continued digging. The bones are thought to date back to between the 12th and 14th centuries and have been sent to the Cotswold Archaeological Trust's headquarters in Kemble Business Park.
There, specialists will analyse the bones to determine their age, sex, and approximate age.
Archaeologists have indicated that the skeletons are male.
They were found facing east to west, an indication that they were given a Christian burial.
The remains of St Michael's Chapel, which was used by monks at Malmesbury Abbey in the 12th and 13th centuries, have also been discovered, as well as medieval pottery.
The site was a graveyard until 1285 and also extended to the Market Cross when monks lived around the abbey.
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