The works will take place at Oban Bay from Stafford Street to George Street, Queen's Park Place and Station Square.
This is the second phase of major public work following the successful completion of work to Stafford Street.
The design for Station Square provides a shared surface, flexible space for occasional events, a widened seaside footway, an improved shelter for bus passengers, bespoke seating, ornamental planting, provision for the taxis and feature lighting columns incorporating a WIFI repeater station.
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George Street and Queen's Park Place will see bespoke seating areas, including planting and feature lighting columns which will incorporate a WiFi repeater station.
Other features include an improved footway on the seafront; refurbished railings and replacement lighting along the sea wall.
Councillor Ellen Morton said: "This is great news for people in Oban. Things are really starting to take shape with our key regeneration projects there, with Stafford Street completed and the benefits there for all to see. It's a great space which is being well used, with local traders already starting to see the economic impact."
Councillor Roddy McCuish added: "This is another great boost for Oban. Land Engineering is a leading player in public realm work, with a proven track record in high quality delivery.
"Recent projects include the full reconstruction of Kilwinning Main Street, the restoration of Bridgeton Cross roads and pavements ahead of the 2014 Commonwealth Games in Glasgow and work on George IV Bridge in Edinburgh.
"We are confident that we have a great contractor on board and that they will deliver the ambitious improvements deliver the works and am confident they will do so efficiently, on time and within budget."
(LM)
