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Arts Minister Gregory Campbell welcomed contractor Gilbert Ash on-site.
"Detailed work has been completed on the design and costs of the new building and the contractor, Gilbert Ash is now on site to start construction," he said.
The Northern Ireland government has contributed £9m towards the scheme, which will run into £17.85m.
Mr Campbell said the work should "help alleviate some of the current pressures being felt in our construction industry".
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Finance Minister, Nigel Dodds, whose Department managed the procurement of this contract, said the commencement of this project highlights the Executive's continued commitment to deliver the plans and priorities in the Investment Strategy.
"The Executive continues to work with construction leaders to ensure that the funds available for investment in infrastructure are fully maximised. During this financial year alone, it is expected that Government will spend around £1.5bn on infrastructure projects," said Mr Dodds.
Rosemary Kelly, Chairman of the Arts Council of Northern Ireland said the organisation had allocated £2,250,000, from its National Lottery funds for the re-building of the Lyric, as state-of-the-art facility.
The Lyric Chairman, Mark Carruthers said: "We have remained steadfast in our vision and worked tirelessly to raise over £16.5m in an increasingly difficult economic climate.
"We still need a further £1million to pay for fit-out and equipment, so our fund-raising efforts must continue whilst the new building takes shape on our Ridgeway Street site," added the BBC broadcaster.
(PR/JM)
