Robertson Group has been awarded a £7.5m contract to build a new facility at Leverndale Hospital in Glasgow.
The new Adult Acute Admissions Unit will further modernise the provision of inpatient psychiatric care at the hospital.
It will replace the existing facility, which is currently housed in a Victorian building on the Southern General Campus.
The new unit will be a two-storey facility to treat patients with severe mental illness.
It will provide 48 single room accommodation with en-suites and therapeutic space.
Robertson says it will be a modern development to reduce the stigma attached to mental illness and will include treatment rooms, office space and environmental space, including external gardens and a car park.
Work is scheduled for completion in August 2013 and the facility will be built to target BREEAM Excellence.
A gas fired micro combined heat and power system and an electrically powered air source will help make the building environmentally friendly.
The development will use brick cladding, timber frames and stonework.
Regional Managing Director for Robertson Martin Smith, said: "This is an essential project that will literally transform lives. It is Robertson’s ambition not simply to deliver world-class health facilities, but to do so considerably and in a way that respects the community.
"We will be bringing all our experience to the project to ensure we provide an innovative 21st Century facility."
The project has been procured through Framework Scotland with RD Health appointed as Principle Supply Chain Partner and the construction being carried out by Robertson Central.
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