Salford-based builder Morgan Ashurst will build the new £4.3m Lancaster Institute for the Contemporary Arts.
Planning consent for the 30,000 sq ft Sheppard Robson-designed building was granted over the summer.
Sheppard Robson is hopeful the building will become the UK's first education project to achieve the BREEAM 'outstanding' sustainable standard.
LICA will provide the university with event and performance space as well as offices for post-graduate research and administration.
Morgan Ashurst is the construction division of the Morgan Sindall group of companies.