Works undertaken by Interserve will include the off-line construction of a one-kilometre section of carriageway situated between Beith and Dalry along with new junctions. Construction is due to start soon.
This work will remove a series of sub-standard bends on the existing road, improve traffic flow and introduce safety benefits.
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Michael Matheson, Cabinet Secretary for Transport, Infrastructure and Connectivity, said: "The Scottish Government is committed to improving Scotland's transport infrastructure and the award of this contract further cements our investment in the A737.
"These improvements - along with the current work to construct a Bypass at Dalry, which is less than a mile from the Den, and more than a year into construction - will deliver benefits for the North Ayrshire communities as well as long-distance road users upon completion."
Chris Tyerman, Interserve's managing director for infrastructure, said: "We are delighted to have been awarded this project which builds on Interserve's extensive experience in delivering vital infrastructure projects.
"We are proud to be working with Transport Scotland who share our ethos in improving safety and benefiting local communities in which we operate and we are looking forward to delivering a successful project."
