Construction of the new downtown Raleigh headquarters of the state chapter of the American Institute of Architects is expected to begin this week.

The contractor on the project, Clancy & Theys, was given the go ahead to proceed on Monday, said David Crawford, executive vice president of AIA North Carolina.

Construction is expected to be completed by Nov. 1. The 12,000-square-foot building will be located on a one-acre parcel at the southeast corner of the intersection of Peace and Wilmington streets.

The building will be at the edge of the Blount Street Commons redevelopment project.

The $5.4 million project is being financed by $3 million in federal stimulus bonds and cash and donations from the chapter.