The national contractor, which has offices in Gateshead, will undertake a major transformation of Newcastle College's Parsons Tower.
The teaching block will be given a contemporary facade with a variety of elevational treatments and new windows.
Bam will also carry out an internal remodelling, and upgrade mechanical and electrical services.
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The project will provide a more comfortable, inspirational and sustainable building.
Construction director Andrew Warwick said: "Parsons Tower is one of the first buildings many people see when approaching Newcastle by road or rail.
"Bam is looking forward to updating this important facility to provide better facilities for students and staff at the college, and a more fitting landmark for the city.
"We will seek to use local suppliers where possible and to involve students at the college in the construction project to enhance their studies and their ownership of the new building.
"We have a strong and lasting relationship with Newcastle College and are delighted to be continuing that."
The project is due to start on site early in the New Year, with completion in the summer of 2015.
(CD/IT)
