The Australian Department of Immigration and Citizenship commissioned Decmil to build a 600-person accommodation facility for the Manus Island Regional Processing Centre.
Australian immigration Minister Scott Morrison visited Manus Island detention centre last week during a visit to PNG for talks on asylum seekers.
The $137 million project is the first commonwealth contract awarded to Decmil Australia, which focuses its core business on building and civil construction services at remote mining, oil and gas projects.
Decmil has also called for expressions of interest from a range of subcontractors to work on the facility's fencing, charter flights, logistics, earthworks, vehicle supply and communication, and security services.
In addition to the 600-bed facility, the MIRPC will include a 200-room accommodation facility for staff. There will also be health, welfare, recreational and operational facilities, with associated engineering facilities and services.
Work started onsite in July and Decmil Australia is working towards a completion date of January 31.
Decmil CEO Scott Criddle confirmed work was underway to build the 600-person accommodation facility for asylum-seeker transferees comprising women, children, families and other vulnerable groups.
"This is a very significant win for Decmil Group for a number of reasons," he said.
"It is a significant contract award and our first project for the Commonwealth of Australia.
"It is no secret that market conditions within the resources sector have been challenging over recent months.
"We are therefore delighted that we have secured this contract as it broadens the scope of work that Decmil is involved with on a number of fronts.
"Perhaps most importantly it demonstrates that Decmil's core skills, which have been developed during our three decades of working with the leading mining and oil and gas companies operating in Australia, are 100% transferrable to other sectors."
He added: "Our experience in remote locations, building the villages that house workers on many of our nation's major resources projects, has placed us in the ideal position to tackle this new project on behalf of the Australian Government."