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The new homes, which will range from four-bedroom houses to two-bedroom bungalows, will be built on three former council-owned garage sites in Crokeswood Walk; Barrowmead Drive and Saltmarsh Drive.
The scheme has been supported with an investment of £775,000 from the Homes and Communities Agency (HCA) and money from Bristol City Council.
Councillor Anthony Negus, Cabinet Member for Strategic Housing and Regeneration, said: "This scheme will provide a dozen much-needed new homes. Of course this is nothing like the number Bristol needs in order to meet the current demand but it is a step in the right direction.
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"Officers are currently working with our partners in Bristol to explore what other options there may be for delivering more new housing locally now that central funding has been reined back although, clearly, this is a challenge."
HCA investment and regeneration manager John Boutwood said: "Investing in housing that meets the needs of local people is a top priority for us.
"We know that there is demand for high quality affordable housing in cities like Bristol, and councils can play a big role in helping to meet this need.
"It's great that work is underway to deliver these homes in Lawrence Weston."
The new homes are being built Mansell Construction Services Ltd which took over the work following the winding-up of Rok which was originally awarded the contract.
Rok signed the contract on November 1 2010 but went into receivership a week later and initial work to clear the three sites ceased.
The houses will be built to Level 4 of the Code for Sustainable Homes, which is a higher environmental standard than that of the standard build new house and will help tenants save money on energy bills. The homes will also include a highly energy-efficient design, solar panels and under-floor heating
Some of the tenants who are required to move out of nearby Woolaway PRC homes will be offered tenancies of the new homes.
(CD/GK)
