Auldyn Construction Limited has been appointed as the preferred contractor for the Douglas Promenade Refurbishment scheme.
The company will work with the Department of Infrastructure to help finalise the tender submission prior to construction.
It’s a process known as the Early Contractor Involvement phase.
Infrastructure Minister Ray Harmer said: "Having the tender programme finalised will ensure the project can move forward in the most efficient way.
"There is a lot of work to be done both co-ordinating and working alongside all the service providers, businesses and residents, and the department is confident that the right contractor has been appointed to get this project completed successfully."
Auldyn, which is owned by Colas Limited, was the successful bidder in a comprehensive tender process, which included a number of large firms from the UK.
The company has experience of working on Isle of Man Government projects including St Ninian’s Lower School, Pulrose Power Station and Douglas Harbour Lift Bridge.
Director Tadhg O’Mahony said: "We are delighted to have been appointed the ECI contractor for this prestigious project and look forward to working with the Department of Infrastructure team."
Enabling works have already started in a number of locations including major carriageway resurfacing on King Edward Road.
The raised garden area outside the Gaiety Theatre on Harris Promenade is due to be removed in late October.
The scheme will take approximately two years to complete and be within the approved budget of £25 million.