The $6.5 million Kolora development has been given the official go-ahead this week.
The contract was signed in Armidale on Wednesday, giving the green light for construction to commence in approximately six weeks.
The new 32-room Guyra aged care building will provide a healthy jobs boost for the area, said project manager Ned Mozzell.
“Local subcontractors will be employed for the construction,” Mr Mozzell said.
Kempsey-based construction company O’Donnell and Hanlon were awarded the multi-million dollar contract last week with an announcement made by Armidale Regional Council administrator Dr Ian Tiley.
Mr Tiley said external aged care consultants were engaged to review the original plan to maximise efficiencies.
“It was very competitive and I think we’ve got a really good outcome,” he said.
The construction period for the aged care facility is 42 weeks with plans for it to be completed in 2017.
