Local company W.M. Flynn Pty Ltd has won the contract to build the complex and will start this week.

Three homes have already been demolished to make way for the single storey 1200 square metre development, expected to be finished by December.

Once complete, it will house Ballarat's first IVF laboratory, a day procedure ward, a 13-bed recovery ward and three surgery theatres.

The facility will eventually employ 40 people including nurses, medical assistants and clerical staff.

W.M. Flynn manager Peter Flynn described the initiative as an exciting development for Ballarat.

``This will help to revitalise the health industry in town,'' he said.

``We are very excited to be involved with this.''

Long-time Ballarat obstetrician and gynaecologist Russell Dalton will run the IVF unit.

He will set up new consulting rooms a few doors down from the day procedure unit.

Project Planning and Design, based in Wagga Wagga, will design the facility.

Project manager Darryl Forbes-Taber was in Ballarat last week to sign the building contract with W.M. Flynn.

The company has designed similar complexes in Wagga Wagga and Albury in NSW.

Mr Forbes-Taber said the buildings won the New South Wales Building Designers Association state award in 1997 and the national title in 1998.

Kay Hall Pty Ltd, based in Albury, will run the facility once it is open.

Project consultant Ann McHardy said discussions were underway with local doctors to work in the facility.

A manager will also be appointed to run the business in Ballarat.

Ms McHardy said the company wanted to hire local builders and staff to run the facility.