Highways England has chosen Costain to deliver 1,500 traffic monitoring stations across its network.
The Motorway Incident Detection and Automated Signalling (MIDAS) system will use road sensors to detect congestion and then display alerts on message boards to motorists.
Costain has previously installed the system on the M1, M5 and M6 for Highways England.
The firm announced the contract win ahead of Costain’s annual general meeting being held today.
Chief executive Andrew Wylie will tell investors at the AGM that the company is performing “in line with expectations” and is “confident” in the outlook for 2018.
In its results for 2017, Mr Wylie said Costain was aiming to become the “leading smart infrastructure solutions” company in the UK through the use of new technology.
The company also said it would target the proposed development of the Cambridge-Milton Keynes-Oxford corridor, as well as infrastructure changes resulting from the government’s proposal to ban new petrol and diesel cars from 2040.
The company is bidding in a joint venture with Skanska for the £1.65bn contract to redevelop London Euston station as part of HS2.
It faces competition for the contract from a Bam Nuttall / Ferrovial Agroman / Fluor JV and a Mace / Dragados JV.
The winner is expected to be announced in the autumn.
Last year saw Costain pull out of negotiations for a £350m contract on Hinkley Point C due to persistent delays to the project.