In 1768 the construction of the new building was started thanks to the authorizations allowed during the compulsory administration by Flaviani. The architect Domenico Fontana directed the works on design of the the architect Clemente Orlandi; the following year the palace was finished by the Lombard company which had been awarded the contract.
The council chamber has an interesting decoration with the theme episodes Gualdese and illustrious history of the place characters, such as The Battle of Tagina and the workshop of Matteo da Gualdo. They are works by painters of Gubbio Rodolfo Rossi and Clodomiro Menichetti (1909). The same Menichetti also decorated the original office of the mayor and some rooms of the old hospital.