Lancashire County Council has named HOCHTIEF (UK) Construction Limited as the contractor to build the new Broughton Bypass.
Work is scheduled to start at the end of 2015 and be completed in spring 2017.
Congestion has been an issue in Broughton village for the last 40 years and traffic has continued to grow with more than 22,000 vehicles now passing through on the A6 every day.
Construction of the full bypass will reduce traffic travelling through the centre of Broughton on Garstang Road by up to 90% by creating a new route from the roundabout at Junction 1 of the M55 to the A6 north of the village.
Jennifer Mein, leader of Lancashire County Council, said: "This is an important step in the construction of this bypass that will help to improve travel times along the A6, while cutting congestion and pollution in the centre of Broughton.
"The plans are now moving at pace, with the road scheduled to open in spring 2017. The county council is currently working with the contractor to develop a detailed schedule for the work, which will be shared with the local community and other people who use of this crucial stretch of the transport network."
Sally Cox, Managing Director, from HOCHTIEF (UK) Construction Limited said: "We are delighted to have been awarded the A6 Broughton Bypass project. Our team is eager to get started and make the delivery of this scheme a complete success for the community in Broughton."
Their previous experience on other road building projects includes the Forth Road Bridge Replacement (The Queensferry Crossing), the Bexhill to Hastings Link Road, the East Kent Access Road and the Shinfield Eastern Relief Road near Reading.
Initial work includes setting up a compound on site. This will be followed by clearance work to prepare for construction of the road. Trees will need to be cleared before Christmas to avoid disturbing nesting wildlife.
The planning permission also includes a scheme of complementary work, with £1 million earmarked to fund improvements in the village and locally along the A6 corridor and Guild Wheel that will make it a safer and more attractive environment for road users, cyclists and pedestrians.
Councillor Peter Rankin, Leader of Preston City Council, said: “This is a vital step forward for Preston. We’re talking huge investment in local infrastructure that will improve travel times as well as overall air quality.
"Yet, this is just the beginning as the Broughton Bypass will also help to unlock investment in new homes, communities and businesses. Creating jobs, bringing wealth and improving overall quality of life. That’s what the Preston, South Ribble and Lancashire City Deal is all about. Unlocking the area’s true potential and building a lasting legacy for future generations.”
The building of the road will also support the new housing development at Whittingham Hospital, where approval has been given for a development of 650 homes, and 9,000 square metres for business use. 150 new homes will be built in the first phase.
Taylor Wimpey are already working on the site, and other developments are planned in this area.
The bypass is funded by the Preston, South Ribble and Lancashire City Deal, which will help to create more than 20,000 new private sector jobs and see over 17,000 new homes built across the area, along with new school places, open green spaces and new health provision to cater for the growing population.
The City Deal is an agreement between the Lancashire Enterprise Partnership (LEP) and Preston City Council, South Ribble Borough Council and Lancashire County Council, along with central government and the Homes and Communities Agency (HCA).
During the construction, HOCHTIEF will be required to place orders with local companies and offer employment opportunities to people who live within 25 miles of the site. Their progress on this will be monitored.
As a strategic road scheme, the Broughton Bypass also secured funding from the LEP's Growth Deal - www.lancashirelep.co.uk/lep-priorities/growth-deal.aspx.
The Secretary of State for Transport confirmed the orders earlier this year, allowing Lancashire County Council to buy the land needed for the scheme and change existing roads and access.
Once the bypass has been completed, which is scheduled for spring 2017, improvements will be made to Broughton village. The aim is to discourage traffic from travelling through the village and improve the environment for residents, pedestrians and cyclists travelling through the village and on to the Guild Wheel.
The improvement plans for Broughton village, and the A6 in this area, are being developed following an initial consultation event held earlier this year. A similar event has been planned for Saturday 12 December, at Broughton & District Club, Whittingham Lane, where the plans for the village will be officially revealed and people will have the chance to give their views. More details about the event will be announced next week.
For more information on Preston, South Ribble and Lancashire City Deal and to watch the new fly-through video showing the route of the Broughton Bypass visit www.lancashirelep.co.uk/city-deal or follow the City Deal on Twitter @lancscitydeal.