The Highlands and Islands Enterprise (HIE) has confirmed it has appointed Kier Construction to build new premises at Sandbank Business Park.
The new £1.9m project will provide flexible space for inward investors and business growth, the HIE added.
Work on the site is already underway and the 724m2 facility is scheduled to be completed by early summer 2015.
Douglas Cowan, HIE's Area Manager for Argyll and the Islands, said: "We know that a major factor in attracting new investment and supporting the growth of our existing businesses is the availability of high quality, flexible space.
"The original Sandbank Industrial Estate is almost fully occupied and the new Business Park offers an excellent business location option. Facilities such as this are vital for the future growth of Dunoon and the wider Cowal area."
Brian McQuade, Managing Director of Kier Construction's Scotland & north-east England business, added: "We are delighted to be working together with HIE to provide flexible and modern advance business units for growing companies in Argyll and Bute at the Sandbank Business Park in Dunoon.
"Throughout this exciting project, we look forward to working successfully in partnership with the local community and providing opportunities for suppliers and subcontractors based in the area."
The £1.9 million project includes funding of £785,705 through the European Regional Development Fund (ERDF).
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