Leighton Contractors, a wholly owned subsidiary of Australia's largest construction company Leighton Holdings Limited (ASX: LEI), has been awarded $670 million worth of new road work.

The company has been appointed by Transurban Group as the principal contractor for the design and construction of the $550 million upgrade of the Hills M2 motorway in North West Sydney. This follows the achievement of environmental approval and contractual close for the upgrade between Transurban and the NSW Government.

Construction of the Upgrade is expected to start in the period following financial close. Completion of the Upgrade is scheduled in late 2012.

Leighton Contractors has likewise won a $120 million contract by VicRoads to deliver a section of the M80 Ring Road Upgrade.

The package includes the design and construction of two additional traffic lanes in each direction along 4.1km of existing freeway with associated bridge strengthening from South of Tilburn Road to Furlong Road. The project also covers surfacing, line marking and Intelligent Transport Systems between South of Tilburn Road and Sunshine Avenue, and Intelligent Transport Systems works along the Deer Park Bypass.

Leighton will commence work immediately and is expected to complete the poject by mid 2013.