The contract to build a new velodrome in Queensland for the 2018 Commonwealth Games has been awarded to Watpac.

Building firm Watpac has won a contract for the construction of a velodrome in Brisbane for the 2018 Commonwealth Games.

The Queensland government has awarded Watpac stage one managing contractor services for the project in Chandler, which will host track cycling events for the Gold Coast Commonwealth Games.

Watpac is working to confirm a final contract for stage two of construction, and it expects the overall project value will be about $44 million.

Work is set to begin in October and should be completed by mid-2016.