The work is due to start in June is part of a wider £33m investment in the town’s 8,500 social homes.
It is funded by the central government Homes and Communities Agency as part of a scheme to bring all social homes up to a national standard.
By the end of the programme in 2015 the authority will have fitted 2,200 bathrooms, 3,400 kitchens and updated 2,620 heating and 1,918 electrical systems.
Both firms have also agreed to employ local tradespeople and provide apprenticeships and training opportunities for young people.
Councillor Ann Webb, portfolio holder for housing, said: “Wates and Keepmoat are both committed to the high standards that we continue to demand for our tenants and will bring benefits to the whole of the town by providing jobs and training for local people and investment in community projects.”