The contractor will build 369 council homes at the former Summerhill Academy site on the Lang Stracht.

The Summerhill scheme will be a mix of 1, 2 and 3 bedroomed homes, set amongst a network of paths and green spaces.

The council’s Combined Heat and Power Scheme – which uses waste heat from electricity generation – will help keep fuel bills down as well as promoting sustainable living.

All properties will be fitted with “Full Fibre To The Premises” optical cables and a separate duct to increase digital connectivity options.

Council co-leader Councillor Jenny Laing said: “We are thrilled to progressing yet another housing project through partnership working.

“At Summerhill, we want to get the very best outcomes for new residents and the wider area. The construction contract has a comprehensive programme of Community Benefits, including apprenticeships and early learning activities.

“It is also proposed that we set up a residents’ association and encourage tenants to participate in the future management and maintenance of the development.”

Fellow co-leader Douglas Lumsden said: “The entire city is benefiting from our ambitious council house programme, which is gathering real momentum.

“Access to housing greatly improves the quality of life for residents by creating new communities and opening up new social and economic horizons.

“Our programme also supports employment and training opportunities and gives us a chance to attract and retain key workers – nurses, teachers, craft workers – making it a win-win-win for the city.”

Douglas Thomson, joint managing director of Chap Group, which was chosen after a competitive tendering exercise, said: “We are absolutely delighted to assist Aberdeen City Council in delivering much-needed council homes in the city.

“Chap are delighted to have been chosen to deliver such an important and prestigious project for the people of Aberdeen.”

The enabling works taking place include modifying the Denburn Culvert to improve flood prevention at the site.

Last year 99 council homes were built at Smithfield, 80 are nearing completion at Manor Walk. Work is due to start in autumn on a 283-council home development at Wellheads Road in Dyce after the Council entered an agreement with LLP First Endeavour.

And there are plans for more council homes at Tillydrone, Kincorth, Craighill and Greenferns – part of a target of 2,000 additional council homes across the city.