The 4ha facility in Richmond Witney will include space for 240 residents, including restaurant, gym, swimming pool, library, shop and outdoor bowling green.
BAM will build a village care centre incorporating 60 registered care beds on the first floor and 46 assisted living suites split across the ground and second floors.
Work starts on site this week, with the village set to open by early 2016.
BAM construction manager Steve Roome, said: “We will be working with local companies where possible to ensure our work benefits the local environment and community even at construction stage.”