The council is planning to build more than 1,000 new council houses over the next four years, in a building programme worth up to £90m
It plans to select around 10 contractors to help deliver the housing and has awarded Lovell the second major contract to kick-start the programme.
This will see 125 new homes built at Kirkhill and a further 80 at Lammermuir House.
An earlier £12.5m contract was let to Gladedale Partnerships, covering sites at Boghall, Whitburn, Ladywell and Wester Inch to build around 190 homes.
The remaining 700 homes will be let through a series of mini competitions with selected contractors.
Frank Anderson, executive councillor for services for the community, said: “These will be the first council houses for rent to be built for over 25 years in West Lothian.
“Indeed we are building, in our first phase alone, more council houses in West Lothian than were built in the whole of Scotland last year.