Dean & Dyball has started construction work on a £25m mechanical biological treatment (MBT) facility at Avonmouth, near Bristol.
It is the third contract the Balfour Beatty civil engineering subsidiary has been awarded by recycling company New Earth Solutions.
Dean & Dyball recently completed the Cotesbach MBT facility for New Earth in Leicestershire, and the construction manager from that project, Chris Dee, will work on the Avonmouth scheme.
The plant will be able to treat up to 200,000 tonnes of waste a year.
New Earth's construction director, Peter Golden, said: "The performance of Dean & Dyball has been excellent and I am delighted that the Avonmouth project will immediately benefit from the experience gained at Cotesbach.
"The continuity of our partnership working will be important in delivering the Avonmouth facility on programme and on budget."
The project is expected to be completed by April 2011.