Needhams are working with Mid Suffolk District Council on the construction of new council houses, the first to be built by the council in nearly 30 years.
Two 2 bedroom houses are being constructed at Acton Close, Bramford and two 2 bedroom houses and a 2 bedroom bungalow is being built at Fox Meadow, Barking.
The projects are due for completion in June 2016.
Cllr Nick Gowrley, Mid Suffolk District Council’s Portfolio Holder for Housing, said: “These homes are a landmark for both Mid Suffolk and Babergh. We are celebrating the first spade in the ground of our new council homes in decades and we are proud to be bringing this to fruition with our development partners.
“Our new council tenants will be able to live in highly energy-efficient homes, with low-running costs, in the areas that they want to live in. It’s something we can all be proud of.”
Cllr Derrick Haley, Leader of Mid Suffolk District Council, said: “As leader I am delighted that Mid Suffolk’s new homes programme is underway in my ward.”