The works are supported by the UK Government's Levelling Up Fund.
Following the appointment of Clark Contracts, the project will move on to the next stage of development which includes a refurbished grandstand, a new sports pavilion, a new shinty experience and improved infrastructure for large-scale outdoor events.
Three projects along the River Ness in Inverness are being supported with almost £20 million from the Levelling Up Fund. The projects will boost the city's sporting and cultural attractions, preserve key heritage assets, help attract more tourists and assist in achieving net zero carbon targets.
UK Government Minister for Scotland Malcolm Offord said: "This work will transform Bught Park for locals and visitors while reflecting its rich sporting history as a centre for shinty."
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"This is one of three refurbishment projects in the area the UK Government is supporting with £20 million investment, as part of £2.5 billion for levelling-up across Scotland."
The Highland Council's Inverness City and Area Leader Councillor Ian Brown, and Co-Chair of the Levelling Up Fund Programme Board, said: "The contract award for improvements at Bught Park is a welcome one as it will ensure this important sporting and cultural facility can continue to be enjoyed by local people and visitors for years to come.
"Also, in line with The Highland Council's sustainability goals, the works will introduce a cleaner ground source heating system offsetting potential environmental impact."
Drew Hendry, MP and Co-Chair of the Levelling Up Fund Programme Board, said: "With Clark Contracts being appointed to lead the construction and transformation of this park into a cultural sporting hub, the project moves to the next stage of this exciting development that will enable us to continue working closely with, and to benefit, local communities.
"With this major investment in the region we are able to maximise every opportunity to give back to the local community and significantly improve the park's offering for its users."
Michael Scanlan, Director, Clark Contracts, said: "We are proud to be delivering this project and are looking forward to working in collaboration with the council to provide upgraded and enhanced sporting and cultural facilities for the local community."
Construction on site is planned to commence in November 2023.
