The contract to build the new homes is part of the latest £14m phase of Merlin’s major programme to redevelop or refurbish its 1,500 homes of non-traditional construction.
Developed following close consultation with the local community, it will create energy-efficient, modern homes in place of 44 properties in Coalpit Heath and Iron Acton.
Lovell is currently nearing completion of 39 new homes for Merlin at Coalpit Heath in a separate project, also part of the redevelopment programme.
Lovell regional director Kate Rees said: “We’re delighted to be continuing our partnership with Merlin and look forward to starting work on the next stage of this important scheme which is making a real difference to the lives of residents, creating smart, energy-efficient, modern homes for local people.”
The homes being replaced by Merlin were built after the Second World War and are now suffering issues including damp and draughts.