The deal was awarded by Durham County Council.
The contract follows on from Esh's £1.8 million package to carry out enabling works on the site.
The new station will offer modern and accessible facilities to passengers, with eight stands and improved passenger information. It will also house a retail kiosk, CCTV, and more toilet facilities, including an accessible toilet, changing places unit, and a parent and child facility.
Alongside it there will be a new 124 space car park, with high quality paving, street lighting, landscaping and cycle stands.
The scheme forms part of an £11.8 million investment in the town with funding secured through the Future High Streets Fund and an additional £3.6 million from Durham County Council.
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Esh's Divisional Director, Steven Garrigan, said: "There are some exciting projects happening across Bishop Auckland and as a Durham-headquartered contractor we are proud to play a part in the regenerative journey for the town and its residents. We’re pleased to be working with Durham County Council to enhance the transport infrastructure while maximising the social and economic value in the local community throughout the project."
Esh Construction commenced the enabling works in February, with works including the excavation and clearance of the existing hard surface to facilitate a new drainage system for the new bus station. Seven attenuation tanks have already been installed.
A new sub station will be built to provide the necessary power requirements as well as new retaining walls and the installation of a sub base. Ducting for the lighting and CCTV along with concrete foundations will be installed before the main bus station build commences in late June.
In 2020, Durham County Council successfully bid for funding from the Future High Streets Fund to improve Bishop Auckland's transport and parking facilities. The development forms part of the council’s wider plans to regenerate the town centre through a range of leisure and recreation projects, including the repurposing and reopening of vacant properties and improving public spaces.
