The Hercules joint venture between Kier and Balfour Beatty is main contractor on the £121m project to transform the former RAF airbase at Lyneham into a new Defence College of Technical Training.

Caledonian has now started building the modules at its Newark factory which will start to be delivered to site in late September.

Onsite construction of the 12 modular buildings is due to be completed and handed over to Hercules by June 2015.

Caledonian Group Managing Director, Derrick Tyler said: “We won Phase I of the Lyneham project in a competitive tender.

“Offsite construction offers best value, speed and ease of construction to the MoD as it continues in its programme to upgrade the defence estate.

“Caledonian Modular has a long history of delivering high value projects to the MoD.

“We have delivered 13,000+ Single Living Accommodation (SLA) units to 39 sites across England and Wales.

“In 2003, we began production on Project SLAM, our largest MoD delivery programme and to date we have delivered more than 10,000 SLA on that contract alone.”

Roger Frost, Balfour Beatty Project Director said: “One of the major benefits of using modular systems in construction projects is that high levels of safety; productivity and quality can be reached for our clients.

“We are looking forward to working with Caledonian. Our combined work will support the accommodation needs of service men and women here at MoD Lyneham.”