Bovis Lend Lease has been appointed by Defence Estates to build 260 homes for service families in Bulford, Wiltshire.
The £45m contract for the Ministry of Defence's property arm includes demolition of 125 existing houses plus construction of roads, utilities and recreational areas on the Canadian Estate.
The new homes will comprise 195 three-bedroom properties and 65 four-bedroom houses. They will be constructed to achieve Code for Sustainable Homes Level 4.
The project also includes a number of houses that will be readily adaptable for occupation by the severely disabled.
The first 60 homes are scheduled to be ready by next August, with the whole construction programme is expected to be complete in two years.
Bovis Lend Lease saw off competition from five other contractors to clinch the deal.