The 109-bed complex at Albion Mill will include 50 extra care apartments, 31 en-suite rooms for intermediate care and four rehabilitation apartments.
It is being developed for Blackburn with Darwen Borough Council and the local NHS.
WYG are the employer’s agent, Condy Lofthouse are the scheme architects with Thomas Consulting the structural engineers.
Work has started on site and is due to complete in December 2019.
Ged Rooney, procurement director at Bardsley Construction, said: “Bardsley has worked long and hard to establish an enviable reputation as a specialist contractor for extra care and supported living facilities throughout the north of England and looks forward to the successful delivery of this prestigious scheme for VVHC.”