The Shropshire-based company will develop advanced engineering facilities for the University at its Telford Innovation Campus.
Work is due to begin this month, with completion scheduled by November 2016.
The project is part of the institution's £250m Our Vision, Your Opportunity investment plan.
A range of new courses will be offered by the development including specialist equipment such as a design and visualisation facility, wind tunnels, engine test facilities, 3D printing facilities, and laboratories dedicated to electronics and telecommunications, metrology and materials testing.
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Professor Ian Oakes, Deputy Vice-Chancellor of the University of Wolverhampton, said: "In the UK, it is estimated that there will be a shortfall of around 200,000 qualified engineers by 2020.
"This substantial investment in enhanced provision and expanded facilities demonstrates our commitment to providing the next generation of skilled engineers."
Steven Owen, MD at Pave Aways, added: "We were delighted to win the contract to deliver such an exciting redevelopment project in our local area and we are committed, as part of the contract, to offering real work experience opportunities for apprentices and students currently studying at the University."
(LM)
