The sound of hammers and drills is becoming a regular thing at the Souls Harbour Rescue Mission in Halifax.

For the third time, the drop-in centre and soup kitchen has won an Aviva Community Fund grand prize of $100,000, money it is using for upgrades that include building a sleeping area for men. The demolition needed for the renovations began Tuesday.

"First it starts with ripping everything apart," said Souls Harbour CEO Michelle Porter. "Then we'll be building a sleeping loft for men in the margins, not because they don't have a home, but they have other life-controlling problems that we can help them with in this niche recovery shelter."

The demolition of the main floor at the Cunard Street structure is being done by military veterans, including one who has a special connection to the mission.

"This place is special to me because I was a homeless vet and I actually had a meal here one time," said Rob Dobson, who spent part of his military career serving in Kosovo before he was medically released in 2002. "I can remember having this space to go to, it was awesome."

Using a hammer and a small pry bar, Dobson joined other former military members in tearing out many of the original boards and windows in the building, constructed in 1958.

"They needed help here and asked if anyone could come out," said Fred Maggio, who retired from the military in 2002 after serving as a doctor for 25 years. "I just decided it was a good time to help out."

The money for the renovation comes from insurance company Aviva Canada, which donates $1 million a year to different charitable community initiatives across Canada.

Souls Harbour won $100,000 in 2014 and used the winnings to renovate its kitchen. The organization won again in 2015 and used the money to finish the dining room.

Along with the addition of the new sleeping loft, other improvements are expected.

"One thing we have discovered is that we have absolutely no insulation," said Porter. "By doing this work we'll be able to insulate the building and we'll also get new windows and we'll also update the plumbing and the electrical, just like we did with our renovations downstairs."

Porter said the renovations should be complete within four months.

That means it should be ready to house people for sleeping before the cold weather hits this winter.

The upgrades will also make the entire building accessible, and anyone who wants to come in for a shower will be welcome to do so.