North Somerset Council was left stranded in March when the original contractor, Alun Griffiths Contractors Ltd, told the council that it could no longer deliver the scheme.
There have since been months of hard work and negotiations to reach agreement with Galliford Try.
In the interim, the council has started environmental enabling works to prepare the area for eventual construction.
Galliford Try’s first task will be the completion of preparatory works and any remaining detailed design to discharge remaining planning conditions.
Councillor Mike Bell, leader of North Somerset Council and executive member for major projects, said: “Banwell bypass is a vital scheme for North Somerset, one that will alleviate a century of traffic congestion from Banwell village and will also unlock sites for new housing, helping us grasp the benefit of regional growth. The scheme also includes miles of walking and cycling tracks, along with a substantial bio-diversity net gain.
“It’s a scheme we’re immensely proud of and keen to deliver and, despite setbacks over these past few months, I’m pleased to say that we’re still on track toward starting construction this year. Working with Galliford Try has been incredibly positive so far and I’m excited to continue our work together as we get the scheme delivered.
“I’d also like to thank the local community for their patience and understanding whilst we worked to secure a new contract and also Homes England for their continued support. We’re raring go and to get spades in the ground as soon as we can.”
Galliford Try operations director Liz Bell said: “We are delighted to be working together with the North Somerset team to bring this project forward, and help play our part in improving the lives of local people.”
The contract with Galliford Try is in two stages. The first stage includes preparatory works and detailed design and the second includes main construction. North Somerset Council will take a decision on proceeding with the second stage of the contract at full council in the autumn.
Total project costs have been put at £90m. The main construction contract went out to tender in 2020 with an estimated construction cost of £57m.
