The university announced the redevelopment of the 25-year-old building last October, following 82 complaints - 12 involving serious injuries - as a result of accidents in the building's atrium.
University of Otago property services director Barry MacKay said work on the one-year redevelopment would start on Monday.
The $17.68million redevelopment would include replacing the current roof which was ''never intended'' to be watertight, with a watertight one.
The project would also include a street entrance to be built on the second level of the Union St building and redevelopment of levels two and three to create a ''more modern learning environment''.
Level two of the building would house Commerce Division staff offices and social and teaching spaces.
The building would also be renamed as the University of Otago Business School to reflect its primary tenant, Mr MacKay said.
Naylor Love Dunedin regional manager Ian McKie said the company was pleased to redevelop the building which it built in 1991.
The company had a ''long history'' of working with the university, most recently working on balustrade repairs and maintenance on the Burns Building, Mr McKie said.
Commerce and business classes had been relocated to other parts of the campus, but study rooms on level three would be used until the end of the year.
Commerce Division staff would remain in the building during the redevelopment.