The projects form part of an investment of more than £3 million with work due to commence in the next month.

R Clouston Ltd will be developing 12 new level-access homes at the former Crafty Caravan site in central Kirkwall.

Director Bob Clouston said: “We are very pleased to be awarded this contract and continue a long-standing relationship with OHAL and in building quality, affordable local homes.”

Donald Wylie from WRC Construction is tasked with delivering eight new homes which are a mix of 1, 2 and 3-bedroom in Orphir.

Explaining the welcome timing of the contracts, Mr Wylie said: “As Orkney firms are getting back to work, the certainty of these local contracts helps us and our workforce plan over the next year. It enables us to source materials as locally as possible, deliver new high-quality rented houses and together all help our community.”

The work at both developments will commence in August for completion in late 2021. The projects are part-funded by the Scottish Government Affordable Homes Supply Programme (AHSP).

OHAL chief executive Craig Spence said: “There is an ongoing need for affordable housing to meet the needs of local people, and a vital need at this time to place work with some excellent local construction firms who provide important jobs and apprenticeships.”

He added: “Our development and properties manager, Richard Flett has done some tremendous work in pulling these projects and the finance together so that we can start as soon as we are emerging from Lockdown.”

Richard said: “There was obviously a lot of interest in these contracts, and I am really pleased that two Orkney firms who have both delivered quality housing for us previously, have won the contracts. The build quality and finish we see from local firms is excellent, and I am sure the new tenants of these 20 houses will be delighted when they move in at the end of next year.”