Long-established local firm Frank L Johnston (Shetland) Ltd has won the contract to complete the work at the new Walls pier.
Work stopped last year when the previous contractor, mainland-based Airport Civil Engineering, ran into problems and ceased work.
According to the council it is anticipated that work on the site will resume later this month. It is hoped to have the new pier ready by the end of this year.
SIC capital programme manager Robert Sinclair said: “We’ve been very encouraged by the keen interest in the remaining works, and this has resulted in a winning bid that’s in line with the project budget.
“The majority of materials are already on site and I’m confident that the project will soon be back on track.”
FLJ managing director Frank Johnston said: “With work on the new Fetlar breakwater and pier well advanced, I’m looking forward to continuing to work with the council at Walls. I hope to be making a start on-site within the next few weeks.”