Lovell will install new rainscreen cladding with insulation and fit new windows at the three 14-storey high-rises: Grampian Court, Brimmond Court and Morven Court in the Balnagask area of Aberdeen.
The contractor will also re-roof the blocks and carry out minor structural repairs.
All work will be carried out throughout 2013 with residents remaining in their homes.
Councillor Neil Cooney, convener of Aberdeen City Council's housing and environment committee, said: "These structural repairs and upgrades will increase the energy efficiency of hard to heat homes in what is one of the city’s most vulnerable areas. It will also ensure that these blocks remain structurally sound for the next 30 years or so. In addition to the structural work, there are plans to upgrade the heating systems in these three blocks. A high proportion of residents in these properties are currently in fuel poverty and the provision of a new communal heating system, combined with the structural upgrades by Lovell, will go a long way to address this situation."