Contractors Gibson in Banbridge, County Down, have won a contract to widen 1.9 kilometres of carriageway to two lanes in each direction from the Seagoe to Kernan Loop junctions, Portadown, County Antrim.
The £1.1 million scheme is expected to be completed before the end of the year.
Transport Minister Danny Kennedy said: "This is a significant capital investment in the road network in the Craigavon area. The scheme will help improve the movement of the 27,000 vehicles a day that use the route which is a critical link to and from the M1 Motorway."
Every effort will be made during the work to minimise disruption for the travelling public.
The contract will also focus on completing works at the Kernan Loop junction as early as practical in order to reduce delays.
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