Essex County Council has selected Octavius to build a 1.8km dual carriageway road with three junctions.
The A1331 will run between the A133, to the east of the University of Essex, and the new Allen’s Farm roundabout to the north.
The project provides the initial infrastructure for the planned Colchester Border Garden Community, including new homes and an employment park.
Under an early contractor involvement (ECO) stage, Octavius has already carried out the detailed design work for the scheme, working with Essex County Council to agree the £27m scheme budget.
Funding for the scheme comes from a £99.9m Housing Infrastructure Fund bid from Homes England, which is also supporting Colchester’s new rapid transit system, which Milestone Infrastructure is putting in.