The project involves refurbishing and remodelling an existing 4250m2 building on UWE's Frenchay Campus in Bristol.
Works include an internal fit-out along with M&E upgrades and installations.
The development, designed by Parsons Brinckerhoff, will provide incubation space for new businesses as well as the Bristol Robotics Laboratory.
BAM is already on site and expects the project to be completed in July 2016.
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Craig Allen, Construction Director, said: "We are delighted to have secured the new enterprise zone project with the University of the West of England.
"We look forward to building on existing relationships with the University having successfully delivered their new students union building earlier in the year. The Enterprise Zone will be a great place to do business for new firms which will create jobs and be boost to the local economy."
Professor Martin Boddy, Pro Vice-Chancellor for Research and Business Engagement at UWE, added: "We are delighted to have BAM help us develop the first University Enterprise Zone supported by the government, just one of four in the country.
"Construction is now underway for this development on the Frenchay Campus which will provide significant support to the region's innovation and business growth."
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