Conlon Construction has started on a £1.9m refurbishment of the Foster Building at the University of Central Lancashire in Preston.
The 9,600 sq ft conversion of a disused sports hall will provide students with a new reception hall, three lecture theatres, and a medical centre.
The development is set to be completed in September 2012, ready for the new intake of students.
Conlon will also create new external landscaping and footpaths, disabled access routes and a lift to the upper floors of the building.
Michael Conlon, director of Conlon, said: "Conlon has extensive experience in the education sector from nurseries through to university buildings such as this. It will be wonderful to see the students at UCLan settle into these new facilities which will benefit all those who attend the university for many years to come."
Dave Price, principal surveyor at UCLan, said: "Conlon has delivered a number of successful projects for the university and I am sure this will be another quality project finished on time."