The redevelopment will consist of a new ward block built on the Terrell Street site behind the BRI, refurbishment of the Queen's building, the conversion of wards in the King Edward building and the retirement of the Old Building, which houses Nightingale inpatient wards.
The scheme will also centralise specialist children's services at the Children's Hospital. Paediatric burns, orthopaedics, plastic surgery and neurosciences services are due to move from Frenchay Hospital in 2014. Services will be housed in an extension to the Children's Hospital that will link to the new ward block for the BRI.
Robert Woolley, chief executive of client University Hospitals Bristol NHS Foundation Trust, said: "We have worked on this redevelopment for many years and we are delighted to be signing the building contract today with Laing O'Rourke. We are redeveloping our hospitals to improve the hospital environment for our patients and our staff and the new facilities will enable us to transform the ways in which services are delivered to patients."
Laing O'Rourke regional business unit leader Scott Palmer said: "We are very pleased to be signing the contract with UH Bristol today. Our two organisations have previously worked extremely well together on projects including the Bristol Heart Institute and we look forward to continuing that relationship on this project."
Dr Mike Nevin, chairman of the BRI Redevelopment Board, said: "The Building a Better Bristol programme will enable the Trust to offer the highest standards of clinical care to the people of Bristol. We will be offering 21st century models of care for medicine and surgery in state-of-the-art buildings that are fit for purpose."