Union officials say pipes behind the walls of the Olympic Village have not been properly insulated. (International Association of Heat and Frost Insulators)Contractors taking shortcuts on the construction of Vancouver's Olympic Village could lead to costly mould problems for future owners of the condominium units, according to a union official.

Lee Loftus, the business manager of the International Association of Heat and Frost Insulators and Allied Workers, alleges there are problems brewing behind the drywall where shoddy work may result in energy losses and a mouldy mess for future owners.

The union took photographs of some of the pipes at the athletes' village that appear to show subcontractors installing pipes without the insulation required under Vancouver's building bylaw.

"You have cold water pipes condensing, pooling at the bottom of the walls. You have hot water pipes beside it. That will certainly lead to mould and mildew," Loftus said.

It also means the buildings aren't as energy-efficient as they are supposed to be, according to Loftus.

The developer said the uninsulated pipes were an isolated problem, which has been fixed. But Loftus told CBC News he went back twice and saw no changes during construction.

City inspections underway

Vancouver city staff plan to meet Monday morning to talk about the latest controversy surrounding the $1 billion project.

City manager Penny Ballem said she wants the public to know that the city does regular inspections on the village. "If people aren't satisfied or people have any doubt, the city will do whatever it takes that people can feel reassured and confident," said Ballem on Sunday.

Vancouver's Olympic Village is supposed to be a showcase for green and sustainable living, but financing problems, cost overruns, and a tight construction schedule have led to controversy. (CBC)But the B.C. NDP housing critic Shane Simpson said this latest news could scare off buyers.

"They're going to want some assurance that five to 10 years down the road they're not looking at a significant cost to remove mould," said Simpson on Sunday.

The Olympic Village is supposed to be a showcase for green and sustainable living, but financing problems, cost overruns, and a tight construction schedule have made it one of most controversial parts of the 2010 Winter Olympics preparations.

The city has already invested more than $450 million in the Olympic Village and owns the commercial real estate on the ground level. It hopes to make its money back when the residential condos are sold after the Olympic Games.