Dumfries and Galloway Housing Partnership (DGHP) agreed the deal with Cruden for the regeneration project, which has stalled since Dumfries-based R&D Construction went into administration last year.
DGHP chairman Billy Lockhart said works could start "imminently".
James Shirazi, director of investment with DGHP, said that due to procurement regulations, the process been "much lengthier" than they had hoped.
Curden managing director Allan Callaghan said he was aware of how the demise of R&D had affected local construction employment prospects.
"We will work with DGHP and fellow stakeholders to endeavour to provide as many employment opportunities as possible for skilled tradesmen local to the sites and do what we can to support local suppliers and sub-contractors where possible," he said.
The contract will see the completion of almost 400 new houses.