Nottingham City Council has handed over the site to contractor Wates Construction and completion is scheduled for the end of 2015.
The market units on the site are to be refurbished into workshops and studios for use by creative businesses, in an attempt to develop a creative quarter for the city.
Wates has been appointed by the council to refurbish three of the five ‘avenues’ at Sneinton Market, funded through a £2.44m European Regional Development Fund (ERDF) grant and a further £1.45m from the city council.
Council leader Jon Collins said: "We have been working to see Sneinton Market regenerated and brought back into full use for some time. I am pleased to see this work now getting underway to make sure our long held vision for this important site in our city centre can now be realised.”
Wates Construction operations director Richard Scarrott addded: “It's an exciting time as we move on site at Sneinton Market and begin the preparations to embark on this much-anticipated project for the city.”
Wates was appointed to the project via the East Midlands Property Alliance (empa) framework agreement, which is managed by Scape. The framework was established in 2008 by local authorities to improve the cost-efficiency of property services for local communities.