The work involves building a two level junction on the A1 northwest of Elkesley, at the intersection with Jockey Lane near Retford. Carillion will also build a new road bridge over the A1.
New drainage, lighting and signage will be introduced and the 60mph national speed limit will be restored on the A1 north of Elkesley, increasing it from 50mph.
The scheme will also improve access from the village over the A1.
Construction work is set to begin early in the new year and is due for completion by early 2015.
Highways Agency project manager Brian Gash said: “The scheme will make the A1 Elkesley junctions safer, improve journey times and ease congestion. I am sure that the work will be welcomed by the Elkesley Bridge Campaign and local people who have shown their support for the scheme in the past.”