The scheme, which involves signalising the roundabout and providing a connecting road through it to facilitate southbound movement on the A444, will start immediately and is expected to take six months to complete.
In addition, the project involves widening the approaches to provide additional lane capacity and walking and cycling facilities will also be improved.
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The project is funded through a combination of the government's Local Growth Fund through the Coventry and Warwickshire Local Enterprise Partnership (CWLEP) and Warwickshire County Council's Capital Funding.
Stephen Tomkins, Operations Director at Galliford Try Highways, said: "We're delighted to have been appointed as contractor on this important scheme for Nuneaton. Coton Arches is a heavily congested area of the town and the improvements we are making will help to ease the flow of traffic and improve the journey times of commuters at peak times.
"Being based near Hinckley we know the region very well and have a strong local supply chain. Our other current local projects include the A426 Elliott's Field scheme and the Houlton link road in Rugby."
(LM/MH)
