Despite submitting the highest price bid it beat rival shortlisted bidder Balfour Beatty for the complex residential job, which will consist of 1,305 Gehry and Foster + Partners designed homes.
The final construction contract will have a value in excess of £1bn, making it the largest private building contracts ever to be awarded.
So far Carillion has taken the £400m contract for phase one and Skanska the £600m deal for phase two, which involves converting the iconic power station building and saw Mace take the £100m enabling works package.
Rob Tincknell, CEO at the Battersea Power Station Development Company, said: “The appointment of Bouygues UK as preferred contractor to build Phase 3 – the gateway to the Power Station – is a major milestone and increases the total area under construction on site to 5m sq.ft.
“Bouygues UK demonstrated an impressive approach to the project and had a clear ability to address the challenges of the current London market, resulting in the best cost and programme outcomes. We welcome them to the delivery team that will build these new landmarks for London.”
Phase three has been broken down into two elements because the station box of the northern line extension must be built below one section of the buildings before work can start above.
Work is expected to start on the northern half of the site in the first quarter of next year and conclude in 2019. Bouygues will start work on the southern half in 2018 and concluding in 2020, in parallel with the opening of the Northern Line Extension.
Phase three will consist of a distinctive wave shaped building designed by Foster and Partners to the west of the site.
This 17 storey building will include six large gaps to allow light to pass through and providing views of the power station from the train line on the other side.
The building will include one of London’s largest roof gardens extending the full length of the building.
There will be 617 homes in the Foster’s scheme with the two lower floors facing onto the new high street providing two levels of commercial space for shops, café, bars and other uses.
The building will also include a 167 room hotel and a health clinic.
To the east of the new high street the scheme has been designed by American architect Frank Gehry and includes five main buildings ranging in height from 16 to 17 storeys.
The Gehry designed element will be anchored by the distinctive Flower building(above).
This side of phase three will provide 688 homes, a gym and more shops, cafes, bars and restaurants on the lower levels.
The target date for completion of phase three is 2020 which is when TfL expects the Northern Line Extension to be up and running.