The €25 million project is expected to be completed by 2017 and will include a new A&E department that is three times the size of the current facility.
The Dooradoyle hospital is the nearest emergency department for North Tipperary, Clare and Limerick.
John Sisk and Sons has been appointed for the fit-out and completion of the new emergency department at the University Hospital in Limerick, which covers the Mid West region.
The company will also deliver a new 24 bed dialysis unit at the hospital with a completion date for the entire project estimated in 2017, the new dialysis unit is expected to be up and running in 12 months.
Originally, the new A&E was scheduled to be finished next year, but it's not expected to be finished until sometime in 2017.
CEO of the UL Group of Hospitals, which includes Nenagh General, Colette Cowan says she's confident there won't be any further delays to the project.