Work has got underway on the £16.3m construction phase of the new £35m Mary Rose Museum at Portsmouth Historic Dockyard, Hampshire.

The Mary Rose Trust (MRT) has selected Warings Contractors - part of the Bouygues group - to build the new museum, which has been designed by a team that includes Wilkinson Eyre Architects. Due for completion in autumn 2012, the scheme will see a boat-shaped building constructed over the dry dock that contains the Mary Rose - Henry VIII's flagship.

More than 19,000 artefacts raised from the bottom of the Solent will be put on show in galleries located on the same level as the ship's main deck when the new museum opens. The start of the scheme's construction phase also coincides with the 28th anniversary of the raising of the Mary Rose from the bottom of the Solent, where it sank in 1545.

MRT is continuing with efforts to secure the remaining £4m needed to fund the scheme, which has been boosted by a £21m contribution from the Heritage Lottery Fund. Rear Admiral John Lippiett, the trust's chief executive, said: "The significance of the Mary Rose collection cannot be underestimated and we still have a £4m fundraising target to meet before the museum can be opened to the public in 2012, the UK's Olympic year.

"One year on since the launch of the Mary Rose Public Appeal we remain reliant on the public to continue to ensure this national treasure is preserved for future generations." Warings Contractors managing director Philippe Jouy added: "This is a unique project which will pose some unique challenges for our dedicated team. Not least is the immense care required to build a modern museum around the precious timbers of the ship as the final stages of its conservation continues."

Although the new museum is scheduled to open in 2012, work will continue on the conservation of the Mary Rose until 2016, when a 34-year programme of work is due to be completed on the historic warship. Image: (from left) Bouygues UK senior legal manager Brian Clayton; Rear Admiral John Lippiett; and Philippe Jouy at the signing of the construction contract