BAM Construction is to build a new home for a village school that was badly flooded in 2008.
The contractor, which has offices in Bristol, is to construct Countess Gytha School on higher ground in Queen Camel.
The existing building next to the River Cam has flooded six times this century, with significant damage sustained in 2008.
The new site is at the other end of the Somerset village on fields next to a medical centre.
As well as six classrooms, there will be an administration area, a sports and dining hall and a kitchen. Outside, pupils will benefit from a sports field and a multi-use games area.
An attenuation pond will take all service water from the building and help with flood prevention.
BAM plans to use the project as a learning resource for pupils at the school.
Work started on site in June 2015 and is scheduled for completion in 2016.