The 120,000 sq ft campus will be built in Sunderland city centre on the land opposite Park Lane bus station.
It will be built in two phases and will accommodate up to 2,000 students and over 120 staff.
The college was one of the big winners when the Department for Business, Innovation and Skills announced grants of £194m nationwide to improve further education colleges last week.
Sunderland is to receive £10m, which will be added to funding for the new development from the city council and college reserves.
Firms have until mid-May to submit prequalification documents for shortlisting down to five by the end of June.
Requests for information should be sent to Karen Wade, Sunderland College, tel: 0191 511 6000 xtn 00370.