Auburn Group is stepping-in to replace Willmott Dixon on a major upgrade job at the Cliffs Pavilion theatre in Essex.
Southend-on-Sea City Council confirmed Willmott Dixon as its chosen construction partner last July.
The contractor signed a a pre-construction agreement with the council ahead of negotiating an agreed cost and works plan for the scheme with the deal priced at £5.8m.
But the job was re-tendered after both sides failed to reach agreement on price earlier this year.
Rochford based Auburn Group has won the new tender race with work set to start on site later this month.
Auburn said: “Our team is committed to ensuring minimal disruption to ongoing performances and events throughout the construction period.
“We look forward to collaborating closely with the venue management and local community to bring this visionary project to life.”
