The work is part of the wider £160m Moray Flood Alleviation scheme combining the expertise of The Moray Council, Royal Haskoning, Morrison Construction and EC Harris to solve flooding issues in Moray.
The scheme will alleviate flooding in Elgin by recreating the flood plain and constructing flood defences.
The project involves creating a sustainable flood corridor along the River Lossie and relieving constrictions to water flow enabling high flows of water to be conveyed safely through the town through the use of a combination of embankments, walls and lowered floodplains.
The contract is due to start on 4 April 2011, with completion in 2015.