The firm will supply equipment for the company's Capital and Operational Delivery framework projects over the next five years.
The deal means over 100 new jobs have been created while additional jobs security has been secured for its existing 273 staff members. In addition, the company has expanded its apprenticeship programme.
First Minister (FM) Nicola Sturgeon welcomed the news during a series of visits in the Highlands, which included a trip to Nigg Energy Park to unveil the first turbine built for Atlantis Resources's tidal turbine project.
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The FM said: "This funding Ross-Shire Engineering has secured provides a hugely welcome boost in providing skilled jobs and investment across the Highlands, as well as providing vital utility services to Scotland’s homes and businesses.
"In particular, I am delighted they will be investing in their already strong apprenticeship job programme, providing vital training and employment to young people living in the Highlands in a competitive jobs market."
Douglas Millican, Chief Executive of Scottish Water, added: "I am delighted that the work we have given Ross-shire Engineering has enabled them to create these jobs and apprenticeships.
"Although our priority is to provide clear, fresh water to our customers and safely return waste water to the environment we also seek to support Scottish companies and Scottish jobs whenever we can."
(LM/CD)
