West Otago Health Trust chairman Allister Body said it was ''fantastic'' to see work progressing well on the centre, which was the result of several years of hard work by the community.
''It's been a big job getting to this point, but the centre is coming along nicely.''
In January, two Dunedin businesses - Cook Brothers Construction and Oakley Gray Architects - won the $2.4 million contract for the health centre.
Since then, the project has been capped at $2.85 million due to alterations as part of the design process, Mr Body said.
Project manager Glenn Forrester, of Cook Brothers Construction, said excavation work started on September 17 and was expected to take 42 weeks to complete.
Foundation and footings were now finished and contractors were preparing to lay concrete on Monday and Wednesday next week.
The memorial gates were removed on Tuesday and will be reincorporated into the new design.
Mr Body said the trust had enough money to meet the stage one construction costs. Stage two of the project - a helipad estimated to cost $10,000 - would be paid for by the Mercer Trust with labour by the Tapanui Volunteer Fire Brigade, but about $250,000 was needed for the third stage, equipment and landscaping.
The new medical centre is being built on the grounds of the former Tapanui Hospital on State Highway 90. It will include a 14-bed rest-home, offering the district's elderly residents a chance to stay in the town instead of having to move to facilities in larger centres.
Thirteen rooms had already been sponsored, with naming rights awarded to each room. One nurse's consulting room and 10 bedrooms remained unsponsored.
Mr Body said the trust was considering offering lifetime naming rights for car parks in order to boost funds.
The centre is expected to employ 20-30 people, providing health services to more than 2000 people in West Otago and outlying areas.
The Clutha District Council has contributed $1 million and the West Otago Community Board gave the trust about $51,000 from the harvesting of a forestry block near Tapanui.
The grant to build a health centre is loan-funded, to be repaid by ratepayers in the West Otago Health service area over 25 years.
