The US military has begun a 1.6 billion US dollar project to upgrade Army housing in Hawaii.
The Hawaii Channel reports the contract with Actus Lend Lease is the largest privatised initiative in the world.
Recruitment figures have fallen recently and the US Army says quality of life issues for its soldiers and their families has never been more important.
Demolition has begun at Schofield Barracks this week and the first phase of the project will cover about 500 units there.
A spokesperson for Actus Lend Lease, Harry Jackson, says the 10-year project will create 14 community centres supporting about 8,000 families.