The contract for the Pennington Street Water Main and Middletown Fire Hydrant Replacement project has been awarded to Austin & Bednash Construction, Inc.
The Newark based contractor made the lowest bid, agreeing to do the project for about $270,400.
Originally, the town estimated that the project would cost $305,000.
Middletown mayor and council approved the contract at its Oct. 1 town meeting.
Part of the project is funded through a state drinking water grant.