Telford and Wrekin council has let the first package contract to kick start construction on the £250m regeneration of the Southwater area of the town centre.
Local civil engineering firm McPhillips (Wellington) will start enabling works this week under a contract worth around £3m.
McPhillips was selected following a closely-contested procurement process which saw 30 contractors express an interest in the works package.
The £250m Southwater development will transform an area of the town centre, running from the shopping centre to The International Centre, with the aim of creating a major regional leisure and business attraction.
Plans for a new Telford & Wrekin Council civic centre, forming the cornerstone of the development, were also given the green light this week.
Morgan Sindall is believed to be one of several contractors to have submitted a bid for the £20m project.
The regeneration scheme also includes plans for office space, a library, two hotels, bars, restaurants, cafes and shops, a leisure hub with a space for a leisure pool and multi screen cinema.
There will also be hundreds of homes including apartments and town houses, a community medical facility and a new Meeting Point House.
The Southwater development is a partnership between Telford & Wrekin Council, the Southwater Event Group and the Homes and Communities Agency.