The economic fallout from the credit crisis hasn’t impacted the preparations too significantly, according to Armitt. But it came a little bit too late to benefit the project in terms of better prices, he added.
There have been some savings from falling commodity prices and lower inflation, but there is an increased risk of subcontractors getting into difficulty, he said.
The LOCOG appears to have sidestepped many potential fund raising issues by getting out of the blocks quickly to secure sponsors. A policy of wait-and-see could have resulted in a dearth of available cash for the committee.
"It was a very smart move to make an early start signing sponsors such as Lloyds TSB and EDF Energy when the economy was stronger. It would be very embarrassing and damaging for any of the major sponsors to have to back out now," Andy Sutherden, managing director of sports marketing and sponsorship at Hill & Knowlton UK, told CNBC.com
However, there could be potential problems for the games in securing further sponsorship from now on, Sutherden said.
“In a climate of financial prudence, companies have to be utterly convinced a LOCOG deal will deliver a healthy return on investment. The inevitable consequence is a slow-down in the decision making process, which may impact cash flow,” he said.
There’s also no guarantee that companies will get the much-converted “halo effect” from sponsoring sporting celebrities or major sporting event such as the Olympics, Mary-Ellen Field, director of Brand Finance, told CNBC.
It is hoped that the London Olympics will bring a lasting benefit to the capital’s relatively deprived East end region, which is hosting the bulk of the events.
“These Olympics are a massive regeneration shot in the arm for this part of London … One of our objectives is to provide maximum opportunity for employment, particularly for the long-term unemployed,” Armitt told CNBC.
Armitt also said that many of the sports facilities could be adapted after the Olympics to broaden their use. The main stadium can be scaled back to reduce its capacity and the handball arena will be used for other sports after the games, he said.
But others disagree with building new facilities. Organizers of the games should opt for a “recession Olympics” with a “back-to-basics” approach, where existing sports facilities, such as Wembley stadium, should be utilized instead of building new ones, Elliot said.
Organizers should also follow the example set by the Barcelona games and invest in infrastructure instead of expensive sports facilities, he added.
Other critics have called for more of the works to be carried out by British citizens and for better employment conditions.
A group of workers protested outside the Olympic stadium in early May, demanding that more UK construction staff should be employed for the project. The protesters, who were represented by GMB and Unite union, also called for workers to be employed directly, not through job agencies.