Balfour will work with its in-house professional services division, Parsons Brinckerhoff, to design, construct and commission the new £18.6m tramway.
The project also involves substantial improvements to the street scene and public realm including natural stone paving, street furniture, lighting and landscaping.
Construction starts in earnest this month with an operational service introduced by 2015.
Client Centro’s Chief Executive Geoff Inskip said: “This is a prestigious project in the heart of Birmingham which demands a construction partner of the calibre of Balfour Beatty.
“We worked with Balfour Beatty last year when they built the Metro bridge for us over Great Charles Street. That was a clear demonstration of their proven track record in delivering projects on budget and on time.”
During the scheme Balfour Beatty will provide up to 1000 weeks of employment for local people and has formalised agreements with its supply chain to achieve local recruitment levels of 75%.
Bill Gifford, Director of Operations for Balfour Beatty said: “We have a long standing presence in the West Midlands, so we’re delighted to be delivering a scheme that will contribute so significantly to the region’s economic and social prosperity.
“We are also committed to helping build lasting communities, and as a local employer we want to make sure that throughout the duration of the project, we’re helping to support those who are currently unemployed getting back to work.”