The £5.3m contract has been won by Stewart & Shields, which beat six other bidders. The initial estimated cotnract for the work had been £4m.
The work involves construction of six adapted bungalows, a block of 12 flats and the Youth Foyer - a community building that also includes six self-contained flats. The design is by Aitken Turnbull Architects.
The Youth Foyer will offer secure housing, support and training for young people aged 16 -25. It will be the first of its kind for Dumfries & Galloway and only the second foyer in Scotland. Young people living at the Foyer will be expected to be either in education, an apprenticeship, other employment or training, and will have access to volunteering opportunities within the community. The Youth Foyer will also offer community access areas, a conference facility, breakout spaces and access to WiFi.