Construction of the $90 million Bendigo GovHub is set to commence, with council's former Lyttleton Terrace site set for demolition in a fortnight.
East Bendigo construction firm Fairbrother has been awarded a contract for early site works, which include fencing, establishing the construction site, relocating utilities and demolition.
Member for Bendigo East Jacinta Allan said 100 jobs will be created as part of the project, with 46 of those during early works.
"GovHub is going to be part of transforming Bendigo's city centre," Ms Allan said.
"By mid-2022 there will be a new Bendigo GovHub building to deliver better services for our community."
Council approved the sale of the Lyttleton Terrace site in May and will become a tenant in the building once construction is complete, at a cost of $35.6 million over 40 years.
Joining the City of Greater Bendigo will be state government employees from the Department of Jobs, Precincts and Regions, Department of Transport, Parks Victoria and the Portable Long Service Authority, among others.
Council's chief executive Craig Niemann said it is fantastic to see months of work come to fruition.
As flexible work arrangements have come to the fore amid the COVID-19, Mr Niemann said the 1000-desk building considered the future of workspaces as part of its design.
"This is will be an open and flexible work space that has been designed around the future of workplaces, not just existing arrangements," he said.