Balfour Beatty has been named as the preferred bidder for the Third Don Crossing in Scotland.
Members of the Finance, Policy and Resources committee at Aberdeen City Council agreed to select the contractor to construct a new bridge over the River Don, a new stretch of road linking it to the road network north of the Don, and realign and upgrade roads to the south of the river.
Convener Willie Young said: "The Third Don Crossing is a significant piece of infrastructure for Aberdeen and is a key project identified in Aberdeen's Strategic Infrastructure Plan.
"The bids for the project came in higher than anticipated, largely as a result of the economy picking up and the construction industry taking off again, but we are committed to the Third Don Crossing and have made provision for the additional costs.
"The most important thing for us is that we work with all of the people who are affected by the works for the Third Don Crossing and we are taking steps to ensure that the communities on either side of the new road and bridge are kept fully informed of the project.
"A site office will be set up on the Tillydrone side which will be open to the public where council officers can keep them up to date with the construction and answer any questions people may have about it."
Public meetings will also be held in Bridge of Don, Danestone and Tillydrone, at which Councillor Young will discuss the works and related mitigation measures with the communities.
The Third Don Crossing will see the construction of a new single carriageway link road between the Parkway/Whitestripes Road junction and the Tillydrone Avenue/St Machar Drive junctions, including the construction of the new bridge.
Construction will start later this year and the new bridge is due to be substantially completed and open to the public by late 2015.