The new building on Mile End Road will serve as the town’s new relocated Jobcentre Plus, replacing the current branch in Barrington Street.
The scheme is anticipated to start on site before Christmas, with a 12-month build programme.
Already approved by South Tyneside Council, the two-storey building is part of the wider repurposing of South Shields town centre.
Muse, part of the Morgan Sindall Group, is overseeing South Tyneside Council’s 365 Regeneration masterplan, which has so far delivered a new transport interchange for South Shields and an arts centre called the National Centre for the Written Word.
GMI divisional managing director Lee Powell said he was looking forward to “delivering the project on time and on budget”.
GMI has previously built Rotherham Metropolitan Borough Council’s 200,000 sq ft civic centre and the 33 Wellington Street office building in Leeds (a building owned by Lancashire County Council and occupied by law firm Walker Morris).
Muse Developments regional director David Wells said: “Everyone involved with the South Shields scheme has been working tirelessly to make sure the scheme delivers for our partners at the council and the DWP and we’re delighted to get approval for the new facilities.
“This building is key to our collective ambition to deliver a new repurposed town centre. Working collaboratively with South Tyneside Council, we’ll continue to transform the town centre, driving both economic and social prosperity for all and importantly bringing a new vibrancy to South Shields. We look forward to once again working with our trusted partner GMI.”