The contractor is building a new passenger concourse and ticketing facilities, as well as a café/restaurant and retail space and a three-storey hotel above the new concourse.
The proposed new station building will occupy the site of the former concourse and has been designed to represent a new gateway into the city for rail passengers.
The project will be over the live railway with normal train services continuing during the work, which is expected to be completed in just over two years.
The project is part of the city council’s wider £1bn 30-year transformation of Dundee City Waterfront, which encompasses 240 hectares of development land stretching 8km alongside the River Tay. Centrepiece is the new V&A Museum of Design, which BAM is building nearby.
Balfour Beatty regional managing director Hector MacAulay said: "We were delighted to been awarded this contract to construct the new railway station and hotel for Dundee City Council. Following on from our recently completed new Olympia Pool and leisure centre in East Marketgait, this is a key project in the exciting programme to regenerate the Waterfront in Dundee.”
Dundee City Council leader Ken Guild added: “After the preparation work clearing away the outdated concourse and tired 1970s structures, it is good to see our contractors Balfour Beatty on site and the new buildings getting underway.”