Contractor Decmil will make modifications to the intersection of Reid Highway and West Swan Road among other upgrades.
Decmil’s contract will be the first delivered under the WA Industry Participation Strategy ensuring local work and job creation.
The construction project is expected to create 400 jobs for the region.
“We look forward to seeing this project progress, delivering an efficient east-west route across Perth’s north-eastern suburbs for local residents, commuters and the freight industry,” Transport Minister Rita Saffioti said.
The $77.5 million project was funded through the redirection of funds from the flawed Perth Freight Link project.
The widening of this section of the Reid Highway was a previous government commitment.
A new shared path for pedestrians and cyclists will be constructed and the project also includes a new bridge over the highway at Arthur Street.
It is intended to join a range of other projects in a bid to tackle congestion in the north-eastern suburbs.
These projects include New Lord Street, NorthLink WA, Morley-Ellenbrook Line a new bus service and investment in new shared paths.
The upgrades are expected to improve access to the Swan Valley, enhance local connectivity and connect the growing communities of Caversham and Dayton.
The bridge will enable alternative access for busses to cross Reid Highway and for residents accessing a new primary school opening in South Caversham in 2020.
The Federal Government will invest $56 million into this project, with $14 million from the State Government and $7.5 million from the City of Swan towards the Arthur Street Bridge.
“The highway upgrades will improve safety for users and reduce the likelihood of head-on collisions, which have claimed six lives in recent years,” City of Swan Mayor David Lucas said.