The college will be known as Britain’s Energy Coast University Technical College and will specialise in energy, engineering and construction skills.
The new college will be built in Lillyhall on land next to the Energus building, off Blackwood Road and is due to start in October in time to open the college 12 months later.
John Wilson, managing director of Eric Wright Construction said: “This is a prestigious contract to build the first technical college in Cumbria.”
He added the building firm aimed to spend around £2.5m with the local supply chain as part of the project.
The technical college is one of 45 that have already been built or are planned in the UK.