Newcastle councillors have chosen the Melbourne-based Lloyd Group to build the next stage of Bathers Way.
The council voted on Tuesday night to award a $10.997 million contract to Lloyd for the South Newcastle beach skate park and Bathers Way upgrades.
The work includes a kiosk, shade, seating, walking path, seawall repairs and exercise equipment and is expected to be completed in a year.
The council, which won a $5 million Restart NSW grant for the redevelopment, amended the project after initially proposing a skate bowl jutting out onto the sand.
The council also awarded a $5.25 million contract to Central Coast firm Scape Constructions to complete upgrades to No.1 Sportsground.
The project includes increasing the size of the playing surface at No.1 to cater for top-level AFL, resurfacing, concrete bleachers to seat 390 spectators, better 750-lux lighting, drainage and a new fence, sightscreens and cricket square.
The ground will be out of action for another year while the work continues. AFL tenant club Newcastle City will play at Wickham's Hawkins Oval until then.