Procurement expert and former Rangers Football Club chairman, John McClelland, was called in to investigate the V&A project after the construction costs were revealed to have almost doubled from £45m to £80m in January this year.

Among 15 conclusions drawn from the independent inquiry, Mr McClelland called for an “urgent review” of the revised budget amid fears there could yet be additional costs, over and above the already £31.1m overspend, with some aspects of the build still having gone without financial review since 2010.

Now a report by Dundee City Council’s executive director of city development, Mike Galloway, has revealed that construction work to date on the £80 million V&A Dundee is on time overall and on budget and that all of the recommendations made by John McClelland’s in his review of the project have now been implemented.

Work on the project finally got under way in March after more than seven years of planning and following a rescue package to make up the funding shortfall from the Heritage Lottery Fund (HLF) and the Scottish Government.

The report, which will be considered by councillors on Monday, reveals that completed works include the coffer dam which has enabled the foundation construction for the part of the building that reaches out into the Tay, all piling on land and in the river, geothermal energy bore holes for the ground sourced heat pump and ground floor beams on one of the blocks.

Ken Guild, convener of the council’s policy and resources committee, said: “Since the end of March when work first got underway at the site good progress has already been made, both in terms of the actual construction but also on the financial aspects of the project.

“Significant progress has been made with the Scottish Government and Scottish Futures Trust on the proposed Growth Accelerator Model (GAM) Fund for the Waterfront and further discussions continuing.

“A number of sub-contractors have been appointed and have been, or are on, site for a variety of elements of the work.”

Councillors will be told that around 61 per cent of the labour on site is from the local area rising from an initial 50 per cent.

A total of 14 new start employment opportunities have been created and filled by previously unemployed candidates, young people from training programmes or people who had been made redundant by their former employers.

There are seven apprentices on site plus two work experience placements from local employability programmes.

The interior of the former Ingram Street Tea Room designed by Charles Rennie Mackintosh will be installed as a long term exhibit at the museum following an agreement with Glasgow City Council for its loan.

An additional grant of £400,000 has been secured from the Heritage Lottery Fund to cover the full cost of its restoration and installation.