Tyler, who is stepping down from Balfour Beatty at the end of the month, will join the board of BAE in May.
His deputy Andrew McNaughton has taken over running the country’s biggest contractor.
Tyler, aged 51, has run Balfour Beatty since 2005. He announced his intention to leave just two months after Balfour’s steady, no-surprises reputation was jolted with a shock profit warning after more than a year of restructuring and streamlining.
During Tyler’s stewardship, the contractor trebled in size, notably moving into higher-end engineering design with the purchase of Parsons Brinckerhoff and strengthening its infrastructure services capability.
Dick Olver, Chairman of BAE Systems said: “We are very pleased to welcome Ian Tyler to the BAE Systems Board.
“Ian’s knowledge and deep understanding of long-term contracting businesses and his boardroom experience will be an asset to the board, particularly as the company continues to grow its international business and further enhance its growing reputation for excellence in programme management.”