Comhairle nan Eilean Siar has awarded a £4.25m contract for a new care facility in Harris to UBC Ltd.
Work on the new Harris House in Tarbert will start in July this year with an anticipated completion date of December 2012.
The Comhairle has agreed an additional £400k to enable the project to go ahead.
The 16 bedroom facility will provide a much needed care facility in Harris and will also provide an economic boost to the construction industry.
Chair of the Harris House Member Officer Working Group, Cllr Morag Munro, said: “I am delighted that the construction of this facility will now be able to move ahead. Much work was undertaken initially by the Social Work Committee of the Comhairle and latterly the Joint Services Committee and Policy and Resources Committee.
“I commend all those who have enabled us to reach this stage. I am very grateful to members for allocating the additional 400k required to enable the work to go ahead in what is a difficult time for capital funds. I look forward to work beginning in July on this facility for the people of Harris.”