Swedish construction and development firm Skanska has entered into an agreement with the Kalmar County Region in Sweden to develop a new psychiatric clinic at Västervik Hospital.

Covering an area of approximately 24,500m2, the new building will feature forensic psychiatry, round-the-clock care and open adult psychiatry.

The contract, which is valued at approximately $99m (SEK 915m), is added to the order bookings for Skanska Sweden in the first quarter of 2022.

Skanska will implement the project in close collaboration with the Kalmar County Region and other partners.

As part of a preparatory phase, the development firm has already worked with the design of the building for some time.

The company also calculated the target cost for the project, which includes climate calculation. The agreement has been completed and the project is now pending of construction phase.

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Construction of the six-storey is set to commence by the end of February and the clinic will be ready for use in the second quarter of 2025.

The latest contract comes after the company signed an $83m (SEK 775m) contract with Stavanger Municipality for the development of a new municipal town centre for the Storhaug district in Stavanger, Norway.

Skanska included the contract in the Nordic bookings for the first quarter of 2022.

Skanska Group is one of the leading development and construction companies, generating a total revenue of $17bn (SEK 159bn) in 2020.

The company has more than 32,000 employees and operate across select markets in the Nordics, Europe and the US.

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Skanska agrees to construct new psychiatric clinic at Västervik Hospital. Credit: Levi Meir Clancy on Unsplash.