Mansell Partnership Housing has won a £7.2 million contract to build 73 homes in Somerset for Raglan Housing Association.
Work will cover construction of the affordable housing scheme to include 37 two, three and four bedroom houses and 36 two bedroom apartments.
Built on a brownfield site, the units will be of timber frame construction and have been designed to meet Level 3 of the Code for Sustainable Homes.
Raglan Housing Association has secured funding towards the cost of the homes from the Homes & Communities Agency and Sedgemoor District Council.
Work will be completed in phases with the last homes set to be finished at the end of 2010.