The company will build the 77,000 sq ft building as part of the wider Newcastle Science Central development and completion is scheduled for late 2018.
Features will include bespoke laboratory space, with high quality incubation space to meet the needs of innovative businesses in the life science and healthcare sector.
The scheme is being funded by Newcastle City Council, North East LEP as part of the North East Growth Deal (Local Growth Fund) from Government, as well as European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020.
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Brian McQuade, managing director of Kier Construction Scotland and north east, said: "We're looking forward to delivering this new bespoke laboratory facility, building on our expertise in the biotech sector.
"Kier has extensive experience delivering research facilities and we're proud to be providing the latest addition to Science Central development as it continues to expand."
Pat Ritchie, Chief Executive of Newcastle City Council said: "Newcastle has a thriving life science and healthcare sector which is rapidly expanding, and there's a shortage of specialist laboratory space in the city.
"Newcastle Laboratory will provide this flourishing sector with the much needed specialist facilities - enabling life science organisations to continue growing, innovating and producing pioneering research and products."
The new Newcastle Science Central development will form a new urban quarter in the centre of the city, providing 500,000 sq ft of office space once finished.
(LM/MH)
