The contractor is due to start building 70 homes on Sandalwood Drive in Wigan this month after being appointed by the council.
Caddick Construction expects to complete the £11.7m development, which is part-funded by Homes England, in late 2022.
Designed by MHA Architects and AA Projects, the scheme will comprise 48 one-bedroom apartments, three two-bedroom apartments and 18 bungalows.
Ian Threadgold, managing director at Caddick Construction, said: “This is an important scheme that will bring much-needed extra care housing provision to Wigan.
“The mix of apartments and bungalows means there will be more choice locally for those who want to still enjoy independent living but with the assurance of extra care when they need it.”
Cllr Keith Cunliffe, deputy leader of Wigan Council, said: “We know having the right home in the right place has a direct impact on someone’s health and wellbeing and their quality of life.
“That is why extra care housing developments like this in Sandalwood Drive are vital to our long-term vision of delivering a high standard of accommodation that is well designed, attractive, and affordable for residents.”
Sutcliffe is the structural engineer for the project.