The works include the addition of three extra fire bays, the development of the drill yard, as well as the inclusion of new accommodation facilities for the crew of twelve fire service personnel.
The station's lecture room, toilets, showers, and Drying and Breathing Apparatus Equipment rooms will also be upgraded.
Construction work is scheduled to last approximately 10 months.
Commenting on the commencement of the works, Madeleine Taylor Quinn, Mayor of Clare, said: "The development of improved facilities at Shannon Fire Station is imperative considering Shannon's status as a Hub town under the National Spatial Strategy.
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"The rapidly expanding population of Clare's second largest town further heightens the need for a modern and well-equipped Fire And Rescue Service.
"I am delighted to see that Clare County Council, with the support of the Department of the Environment, Heritage and Local Government, has taken these risks into account by developing new and improved facilities," added the mayor.
Shannon Mayor, Gerry Flynn, said: "I look forward to the day when Shannon, as an expanding town can benefit from a full time local fire and rescue service with a specially-commissioned section for a fast response paramedics unit. The contract signing is a major step towards the facilitation of such services."
Tom Burke, Senior Assistant Chief Fire Officer, said: "We also intend developing training facilities in Shannon, similar to those currently being put in place at Ennis Fire Station. Furthermore, the Service intends locating a new water tanker in Shannon, subject to the approval of funding by the Department.
"The provision of this unit will enhance our capability to deal with structural fires along with fire incidents in Shannon and its' environs."
Mr Burke explained that works would be implemented on a phased basis and that there would be no disruption to service delivery.
Meanwhile, work has commenced on the construction of a new Training Centre at Ennis Fire Station.
(PR/JM)
