Lands Minister Brendon Grylls said the State Government had awarded a $3.1m contract to Ertech Pty Ltd to undertake site works on the workers' accommodation village at Kununurra.

"The village will be able to house up to 250 employees and contractors working on the irrigation expansion project," Mr Grylls said.

"The start of site works for the village is a major milestone for the project and I'm very pleased this first contract will provide significant benefits to local businesses."

The Minister said a big portion of the contract would be subcontracted to local businesses, demonstrating the Government's will to maximise opportunities for local sub-contractors and increase the area's business capacity during the project.

Ertech, working in partnership with local electrical subcontractors Ord River Electrics and indigenous labour hire company Wanna Work, would undertake civil works including earthworks and the provision of roads and services on the site as well as the installation of individual supply points for the proposed accommodation.

Mr Grylls said accommodation buildings would be installed at the same time as the civil works were being carried out to ensure beds were available in the village for the start of the main contract.

Works start on site in the next two weeks and are expected to finish in early May.