The Ministry of Justice has now signed off the package for the 1,700-place category C jail near Leyland, clearing the way for early works ahead of completion targeted in 2031.
The scheme, presently known as HMP Garth 2, will provide around 74,500 sq m of accommodation across seven four-storey house blocks, each holding about 245 prisoners.
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Initial works will involve demolition of existing buildings and structures and associated engineering work.
The site preparation programme will also require relocation of an existing energy centre and bowling club.
Further enabling phases will deliver a replacement bowling green and clubhouse, new boiler house and prison car park before construction of the main prison buildings gets underway in phase four.
Confirmation of the Laing O’Rourke deal came as the Government announced a further £110m to accelerate delivery of prison capacity and secure land for future jails.
It will also be used to convert existing areas inside prisons, including former offices, laundries and storage space, into additional cells.
The funding will help bring forward hundreds of places as part of plans to add 14,000 prison spaces by 2031.
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