Alun Griffiths (Construction) has been appointed by Herefordshire Council to deliver the City Link Road.
Construction is set to start in July 2016 and will take around 15 months to complete.
Herefordshire Council and Balfour Beatty Living Places evaluated five tenders submitted through an open competitive tender process prior to the awarding of the contract.
Councillor Philip Price, cabinet member infrastructure, said: “I am happy to announce that Griffiths have been awarded the contract for the road; they are a local company and it’s good for all of us that we are employing a contractor who directly contributes to the local economy through the employment of local people.”
Peter Evans, project director at Alun Griffiths Construction, added: “Alun Griffiths is once again pleased to be associated with Herefordshire County for the delivery of another prestigious scheme within the city.
“We have, over many years, developed a close working relationship with the county resulting in the successful delivery of significant projects which have provided added value to the local economy.”