Ashbe Construction will put up the hoardings and start work on preparing the site ahead of groundworks.
Deputy Tom Binet, Minister for Health and Social Services, said the project was “further along then we have ever been”.
He said: “Not only is work continuing at the Overdale site, but the acute hospital has also received its planning permit, which is critically timed to support the final stages of the procurement process for appointing a main works delivery partner.
“In the next phase, the new healthcare facilities team will work closely with Bouygues UK to secure the best possible commercial outcome for islanders as we progress the largest of the new healthcare facilities projects.
“Our aim is to reach an agreement on the main works contract early next year and begin construction of the new acute hospital as soon as possible thereafter.”