CCG is building 24 new homes on Crieff Road and completion is scheduled for February next year.
The project marks the sixth contract CCG is working on with the local authority in less than 18 months, with 32 houses already delivered in the region. Work is also underway on a further 20 flats in Scone, a development that is due for completion in spring.
Cllr Peter Barrett said: "This new development is the latest project in the Council's substantial new-build programme which has seen us deliver brand new Council houses right across Perth and Kinross.
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"It will deliver much-needed high-quality accommodation on a site that has been derelict for a few years. The development will make a real difference to the lives of the tenants who move in, and it also improves the local environment considerably.
"I am delighted to see the beginning of work on the site, which represents a considerable investment in the local community by Perth & Kinross Council."
Calum Murray, Director of CCG, said: "CCG and Perth and Kinross Council have enjoyed a strong relationship since our first project started in October 2016 and we are delighted this can continue with our work at Crieff Road.
"Like the previously completed developments, we will be using our offsite manufactured timber frame system for the build. This system is manufactured with precision ensuring quality and reduction in long-term maintenance for the council.
"It also offers a faster speed of build, minimising disruption to the local community, and with enhanced environmental performance, it will deliver savings on the future residents' energy bills."
(LM)
