Skelmersdale-based Construction Partnership UK has been awarded a £2.6m contract to build a care centre in Accrington.
The 46 bedroom care centre is being constructed on behalf of Springhill Care and will provide specialist dementia care.
Work on the development, which also includes a number of green-energy initiatives, will start shortly and construction will take 44 weeks.
The new care centre is located on Fairfield Street and has been designed by Accrington-based Blue Sky Architects. The project also includes building a new car park.
Steve Burke, CPUK managing director, said: "This new contract in Accrington is one of a growing number that we have secured in the healthcare sector and follows our work building a pioneering centre for excellence for dementia care in Southport.
"Once again we are involved in the creation of a flagship health development in the North West, which is very satisfying for our team.
"With every healthcare job we are involved in we are building our experience and knowledge of the requirements and standards expected in the sector.
"The Springhill Care development is at the forefront of dementia care, not just in the region, but in the UK and the company has an excellent reputation in the sector.
"We are looking forward to delivering the vision the company has, both on time and in budget."