Carillion is expected to start work on the £22m Taunton Northern Inner Distributor Road by March.
The scheme involves demolition of several properties and construction of sections of new road on a mile-long stretch between Staplegrove Road to the west of Taunton and Priory Bridge Road to the east.
Carillion is expected to be confirmed by Somerset council as the winning bidder shortly.
Under the contract it will also build two new highway bridges, one over a road and the second over the river Tone and a canal. It will build a pedestrian bridge over the London to Penzance main railway.