The contract for Portsmouth City Council was originally due to start this summer but got underway this month.
The landmark tubular structure is a two-storey hub will include a community centre, a youth centre, a primary care trust and dental surgery and a local housing office.
The building straddles a road and its innovative design will allow it to act as a pedestrian route.
BAM Design is the architect and service engineer for the project.
BAM construction director Bob Sanders said: “We are very pleased to be bringing these innovative designs to life as a state-of-the-art facility for the local community.
“We look forward to using our capabilities to deliver this challenging project in a way that minimises disruption for neighbours.”
Kevin Hudson, project manager for Portsmouth City Council, said: “It was important to residents that the design should be iconic and that the facilities that the community needs should be brought together into a building that made the best possible use of space, which is at a premium in Somerstown.”
Construction is due for completion in March 2014.