Vinci has replaced Carillion as the contractor to build the £74 million Fallowfield Student Accommodation for the University of Manchester.
The collapsed industry services firm was awarded a deal last year to develop the 1,122-room facility.
However, following Carillion's failure Vinci has stepped in and said the scheme is making "good progress".
"Our team started on site 28 February to deliver 1,122 student rooms," the company said.
"The ground works are finally underway and the scheme is making good progress. The project will spread across 32,020m2 of floor space, and will include cluster flats, relevant amenities, external works and landscaping."
The development is due to be completed in September 2019.
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