BUILDING contracts have been signed for work on a new dales community hospital.

Work is expected to start on the new £10million Richardson Hospital in Barnard Castle in early November.

Anne Beeton, the chairman of the Durham Dales Primary Care Trust attended the contract signing in Leeds and said the new hospital would make a huge difference to the working lives of staff.

She also thanked the Friends of the Richardson Hospital and the Trustees of the Richardson Charitable Trust for the help with the project.

The contractors for the development are Care Partnerships 25 Ltd and the building work will be carried out by Carillion Plc.

Over the next six weeks the building plans will be finalised and the site will be prepared for work.

The first physical changes will start with the demolition of the existing health centre and resurfacing of the car park in John Street.

Christina Haworth, the PCT Director of Nursing, said: "We see this as a long-term investment in the health and well-being of the residents of Barnard Castle and Teesdale."

The new hospital, which is expected to open in early 2007, will provide a wider range of services including rehabilitation and palliative care.