The housing developer will build 50 new homes along with 800 sq m of commercial space for Big Sky Developments in Long Stratton.
A total of 42 houses, six bungalows and two flats will be developed at Maple Park and the scheme is due to be completed in autumn 2017.
The project involves using a modern steel frame construction methods which delivers high standards of build-quality, energy efficiency, reduced construction times and minimal waste.
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Lovell regional director Simon Medler said: "Imaginative developments of this kind ensure that flourishing communities such as Long Stratton continue to thrive and grow. Our team has a strong record of delivering high-quality affordable and open market homes, as well as smart, modern business accommodation.
"We're delighted to be working with Big Sky Developments on this important community scheme, using our expertise in constructing residential and commercial premises built and finished to the highest standards."
Council Leader John Fuller added: "The development will bring enormous benefits to the local community, including employment, affordable housing and a range of office space to suit businesses of all sizes."
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