Construction of the Broughton Bypass will finally begin in January with the road expected to open by spring 2017.
The new 1.9km route is intended to cut congestion at a notorious traffic jam hotspot – the Broughton crossroads on the A6, three miles north of Preston.
It will link the M55 roundabout south of Broughton with Whittingham Lane and the A6 north of Broughton crossroads, avoiding the main part of the village.
The bypass will support a major 650-home development at Whittingham Hospital and is seen as key to unlocking further developments under Preston’s £383m planned City Deal.
The bypass is funded by the Preston, South Ribble and Lancashire City Deal, which will help to create more than 20,000 new private sector jobs and see over 17,000 new homes built across the area, along with new school places, open green spaces and new health provision to cater for the growing population.
Hochtief will be required to place orders with local companies and offer employment opportunities to people who live within 25 miles of the site.
Lancashire County Council was first granted permission for the new road in 2001 but funding was only agreed in 2013.