The local firm beat off competition from BAM – who were initially expected to deliver the project – Eric Wright and Graham to secure the £18.8m contract.

Main works are about to start after a formal groundbreaking ceremony and the five-storey building is due to be finished for the start of the 2020/21 academic year.

The new 60,000 sq ft building will offer cutting-edge facilities and significantly more space for students, staff and partners.

Offering the space equivalent to around four tennis courts per floor, the building will boast three new lecture theatres, collaboration space, a new reception, multiple offices and an executive teaching suite.

The Dean of Lancaster University Management School, Professor Angus Laing, said: “As one of the first business schools established in the UK, we have a proud history of pushing boundaries and conventions to challenge our students and prepare them to become our future leaders.

“This building marks the start of the next exciting phase of LUMS’ development. The new building will be followed by an extensive refurbishment of our existing facilities to provide innovative study space and a unique all-round experience for our students, staff, business partners and visitors.”

Nigel Sharp, operations director at John Turner Construction Group, said: “As a leading regional contractor, we are delighted to be awarded this high profile LUMS project and to be working with one of the highest ranking universities of the north.”

The new building will be located next to the Management School and Gillow Avenue on Lancaster University’s Bailrigg campus.