BAM has been announced as the main contractor to refurbish a Grade II listed building in London.
The Department of Education (DfE) appointed BAM to redevelop the Old Admiralty Building in Horseguards Parade.
The historic site will become the departments new headquarters in 2017 when it relocates from Sanctuary Buildings in Great Smith Street.
The building is currently occupied by the Foreign and Commonwealth Office.
The department has already cut its estate costs from £63 million to £45 million a year since 2010 and reduced the number of its properties from 12 to six.
A planning application has been submitted to Westminster City Council ahead of the proposed works due to begin in November 2015.
The DfE and the Government Property Unit are in talks with the Council and Historic England about the necessary internal changes for the building to accommodate 1,600 DfE staff.
Andy Mason, Construction Director for BAM Construction London, said: "This is the kind of challenge that BAM has shown time and again it can deliver successfully and we are thrilled to be part of the team.
"We will be working carefully with Historic England on many of the decisions that will need to be taken on this historic and complex building."
(LM/CD)
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