Demolition work on the five major Olympic sites have now been completed and the construction work will begin next year.
ODA chairman John Armit said: "This has been a year of solid progress on the ground in the preparations for the 2012 Games.
"With such a huge project it was essential we got off to a good start. We have done that and are exactly where we planned to be at this stage.
"Big challenges lie ahead but we have put in place strong foundations for the future. In 2008, we will change gear as we enter the start of the `Big Build' phase with construction beginning in earnest in the summer."
The Government has set a budget of £9.3 billion for construction,transport improvements and regeneration of the area in east London.
The actual running of the Games will come from a separate £2billion budget funded through television rights, ticket sales, merchandise and sponsorship.
Lord Coe, chairman of the London organising committee for the Games said: "In a project of this scale and complexity, we have to make the most of every day, and we have done just that this year, making excellent progress."
"As the eyes of the world turn to London after Beijing, we will be ready, and we won't disappoint."