The contract, which was approved last Thursday by the Council, will see the category A listed building more easily accessible to meet the needs of the wider community.
The project will also see the restoration of the building's historical fabric and features and contribute to the regeneration of Alloa town centre. It will be converted into a modern library facility, with a new ramped access, main entrance and lifts.
The redevelopment was first approved by the Council in September 2010, with Marshall Construction Limited selected as the main contractor to carry out the refurbishment on behalf of Hub East Central Scotland Limited.
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Work is due to start on the building this month and will take approximately 46 weeks to complete.
The work will see the creation of a new modern library, which will include a local and family history centre, a visitors gateway for information regarding the heritage of Clackmannanshire, displays and exhibits, registration of births deaths and marriages, wi-fi and computers for public use, as well as relaxation areas.
The newly refurbished centre will also include a customer service point for information, enquiries and payments and bookings.
Council Leader Councillor Gary Womersley said: "The signing of this contract will eventually ensure the maximum use of an important but underused building by adapting the listed building in a manner which is sympathetic to its character and appearance while enhancing the town centre as a whole.
"The refurbishment of the existing areas on the ground and first floors will provide access to a wide range of public services including heritage information, health and well being support, learning zones and information technologies."
Scottish Futures Trust has earmarked £190k for the refurbishment, while Historic Scotland contributed £195k towards the overall cost of the contract.
(JP/CD)
