The two-level building, on Anzac Ave in Dunedin, will provide flexible learning, office, study and art studio space based around a central "street" for students from the new bachelor of engineering technology degree and the art school.
Dunedin company Cook Brothers Construction won the building tender and the structure is expected to be ready in time for the start of the 2011 academic year.
Earlier this year, the polytechnic announced plans to demolish the old buildings on its art school site bordered by Anzac Ave, Riego St and Albany St and replace them with teaching spaces for more than 1000 art, engineering and horticulture students.
Two art school buildings will be retained.
The $25 million redevelopment, to include beautifying the banks of the Water of Leith as a recreational space, will be staged over 10 to 12 years.
Trades students will help to construct the buildings to keep costs down.
Stage one of the redevelopment is costing $2.2 million and includes the demolition of most of the buildings on the Anzac St frontage, construction of the multipurpose building, landscaping and installation of information technology infrastructure.
