Kier started remediation and enabling works back in October 2023 at the new site for the 1,344-capacity replacement prison to be called HMP Glasgow.
But rampant construction inflation saw the original £400m budget for land and construction soar halting progress to full construction.
The delayed project is now expected to cost £998m, including land costs, and is pencilled for completion in 2028, rather than 2025 as originally hoped.
HMP Glasgow will be built at the former Provan Gas Works site between Blackhill and Provanmill in the city’s East End.
The existing HMP Barlinnie was constructed in 1880 and is in urgent need of replacement.
The prison’s infrastructure was deemed not fit for purpose by HM Inspectorate of Prisons in a report released last year, a finding which it said “emphasised the importance of a new prison”.
Kier aims to create 100 new jobs during the construction, including 50 apprentices and 40 jobs for prison leavers through its Making Ground programme.
Also the contractor aims to further support the local economy by committing to a 50% spend with local supply chain partners.
Rebecca Boundy, public sector director at Kier Construction, said: “It’s an honour to be awarded the contract to deliver this critical project.
“We will build a sustainable, state-of-the-art facility while ensuring that local communities, schools and charities directly benefit both now and in the future.
“Using the latest techniques and modern methods of construction, we will harness the very best of our team’s significant experience in the justice sector to provide a high-quality, more efficient prison for Scotland which has rehabilitation at its core.”
Justice Secretary Angela Constance said: “HMP Glasgow is a bold vision for the future of our prisons that will help reduce reoffending and deliver a considerable economic boost for the city and beyond.