Six companies were invited to tender in June after 16 registered an interest in delivering the project.

Scottish Borders Council confirmed the Glasgow-based contractor had been selected.

The contract will be formally awarded before Christmas with work due to start in January next year.

The main construction works is due to start in January and finish by the end of December 2016.

Councillor Gordon Edgar, the council’s executive member for roads and infrastructure, said it was a “big step forward” for the flood protection project and for the town itself.

“This is one of the biggest contracts that SBC has ever taken forward, and it is pleasing to be able to report that the delivery of this £31.4m project remains on programme and within budget,” he said.

“On behalf of the council, I look forward to the commencement of the site works in 2015.”

Project manager for the scheme, Conor Price, said the selection of the successful tender was the completion of many years of preparatory design and procurement work.

“The next step will be to formally award the contract, and thereafter the project team will refocus on the delivery of the construction works over the coming 24 months,” he said.

“Once the contract has been awarded, the successful contractor will formally confirm the construction programme which will identify when, and for how long, the works will take in each particular area.

“Once this is available, the project team will systematically distribute this information to all stakeholders, land owners, and river users relevant to each section of work.”

Once completed, the scheme will remove 595 properties in the Bannerfield, Philiphaugh and Riverside areas from the national flood risk register.

It will do so by protecting against the effects of flooding from the Ettrick and Yarrow waters and Long Philip and Shaw burns.