The company will build 70 homes for both social renting and shared ownership on Colville Estate.
The project is part of a borough-wide, 18-site council housebuilding programme to deliver 2,760 new homes.
Work on Phase 2 is due to begin shortly and will be completed in 2018.
In addition, Higgins will build 40 properties for private sale along with 129 sq m of new retail space and carry out improvements to the estate such as new lighting and roads.
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In addition, open spaces and public realm landscaping will be developed.
Paul Cooke, New Business Director for Higgins Construction, said: "We are delighted to be awarded the contract for the second phase of Colville Estate. As an organisation we are committed to taking on local labour and will be creating employment opportunities for local people through our training and apprenticeship schemes."
The regeneration of the Colville Estate is taking place in a number of phases over a 15-year period, with the first phase, Bridport House, completed in 2011.
Overall, there are more than 400 homes at Colville which are no longer viable to refurbish and are being demolished to provide new Council homes for social renting and shared ownership, with private sale homes also built to help pay for the works.
(LM)
