Queenstown Lakes District Council spokesman Jack Barlow said Whitestone Contracting had started preparation work at the site last week, and indications were that the project would be completed by March.
The facility would consist of a new pull-off from the main road, a coach turning circle and parking area, a car park for cars and camper vans, a toilet facility, picnic area and a walking track up to a viewing platform, Mr Barlow said.
The Department of Conservation and Ngai Tahu were working together on signs that would provide historical and cultural information.
The existing pull-off and lookout areas, which would be closed off when the project was finished, were unsafe.
"They are not properly signed, have poor lines of sight and do not safely segregate people from the main road.
"There is also a potential rock fall hazard at the location."
