The private builder will take over construction of 135 super-sustainable properties built using modern methods of construction.
It is now undertaking preconstruction activities ahead of recommencement of main construction activities on site later this year.
The structural frames, floor slabs, and external walls for the new apartment blocks have been assembled by light gauge steel framing specialist Sigmat, which recommenced work on site in May and is due to complete this element of the development next month.
Wates will then take over the works to complete the scheme, which represents the first of four new residential communities across Riverside Sunderland.
It is estimated the project will cost around £24m to finish.
Vaux Housing is being delivered by Sunderland City Council, with the ambition that Riverside Sunderland will eventually provide 1,000 city centre homes for up to 2,500 residents.
The development will comprise apartments, townhouses, and maisonettes, using modern methods of construction, renewable energy systems and smart technology to reduce the scheme’s carbon footprint.
David Wingfield, regional director for Yorkshire & North East at Wates Construction, said that the majority of the properties will be built to 2025 Future Homes Standard with 21 built to Passivhaus standard, delivering high levels of energy efficiency.