Lovell has started work on 195 new homes across three sites in Port Glasgow, near Greenock, in Inverclyde.
The new housing, worth £22m, is the first to be built by Lovell under its four-year framework agreement with River Clyde Homes. Work is scheduled to finish by May 2012.
The homes will be for rent through the housing association and include 32 homes at Moray Road, 61 homes at Oronsay and 102 homes at Woodhall.
Lovell is working closely with the Inverclyde Trust to create employment opportunities for local people and local businesses.
Roy Steel, chair of River Clyde Homes, said: “We are undertaking one of the biggest house-building programmes in Scotland with the aim of bringing quality housing for our tenants which meets their aspirations. Work is under way and it’s exciting to see the development plans come to fruition.”