Social landlord London and Quadrant Housing aims to build 370 apartments and family homes to replace the Excalibur prefab estate in Catford, built by German PoWs in 1946.
The £40m contract includes highways improvements and infrastructure to the site, which is presently home to the largest post-war prefab estate in Europe.
The plan to demolish one of the last prefab estates has been beset by problems. In February 2007, London and Quadrant Housing Trust was selected to be the partner housing association for the council stock transfer.
Before the estate was due to go to residents ballot in October 2008, the Department of Culture Media and Sport listed six of the 187 prefabs reducing the number of homes that could be built on the proposed Excalibur scheme.
This loss of additional homes in the middle of the housing market downturn created a funding gap, which will now be filled by the Housing and Communities Agency.