Eric Wright Construction has won an £8.1m contract with Lancaster University to deliver a new engineering building.
The 50,000 sq ft four-storey office and laboratory block will take 60 weeks to build and is due for completion in December 2014.
A spokesman for Lancaster University said: "We are investing £12.25m in a state-of-the-art building for the engineering department to replace existing facilities and provide additional areas for future growth and new specialisms such as nuclear, energy and chemical engineering.
"The new building, designed by architects John McAslan + Partners, will open by December 2014 and will provide a world-class environment with specially designed workshops, teaching laboratories and office areas.
"The new building will be built on land previously occupied by the former Centre for Sport and Recreation. Demolition work is due to be completed in the next few weeks.
"Eric Wright Construction have been appointed and will start on site once the demolition is complete."