But financial agreement between ODA and Lend Lease remains unsigned

Construction work has started on the 2012 Olympic Village, but financial wrangling between the Olympic Delivery Authority and Lend Lease continues.

2012 Olympic village

Piling on the first residential block has commenced, with work being done by specialist contractor High Meads Loop, overseen by main contractor Bovis Lend Lease.

It is the first work on what will eventually become a 10ha development featuring 3,500 new homes, a health facility and an educational academy.

Up to 17,000 athletes will reside in the Olympic Village during the 2012 Games, and apartments will be put up for sale to the public after the Games end.

However, the ODA is still to reach a financial agreement with Lend Lease on how the £800m Village will be funded. The initial construction works are being funded by the ODA, which said an interim agreement was expected to be signed “shortly”.

If Lend Lease proves unable to raise sufficient credit to build the Olympic Village, it is feared the ODA will have to raid its £2.2bn contingency fund to help pay for it.