Willmott Dixon has committed to spend £28m with subcontractors and suppliers located within a 20-mile catchment of the Eastside campus in the heart of Birmingham.
The follow on order from phase one will see construction start next month on a new library, teaching and IT space. During the course of the two-year programme, the project will sustain 1,300 jobs.
Willmott Dixon will also create 46 new jobs for trainees, apprentices and people currently looking for employment.
Willmott Dixon’s strategy that local business must benefit from a substantial amount of work on phase two follows its investment of £1m in Perry Barr to create the 4Life Academy, which is capable of training 2,000 people a year in qualifications that include City & Guilds and NVQs.
The contractor has built a strong base in the West Midlands and now employs more than 1,000 people, many responsible for the repairs and maintenance of 60,000 properties for Birmingham City Council.
Peter Owen, managing director for Willmott Dixon in the Midlands, said: “As a local company we take seriously our responsibility to support growth and sustain jobs in Birmingham.
“Our recent investment in the 4Life Academy is an example of this commitment. Now we have been appointed for phase two of Birmingham City University’s City Centre Campus and we’ll work with local companies to ensure they benefit from this huge investment.”