Source · Select Committees · Public Administration and Constitutional Affairs Committee
Recommendation 20
20
Paragraph: 91
Projects are hindered by over-optimistic estimates of cost and time schedules, and overstatement of early...
Conclusion
Projects are hindered by over-optimistic estimates of cost and time schedules, and overstatement of early benefits. Ministers are too keen to commit to specific cost and timescales early in the process, and project managers become tied to these estimates. The early estimates can then shape the rest of the project delivery, sometimes leading to reductions in outputs or benefits as project-managers struggle to keep project timescales and costs in check.
Paragraph Reference:
91
Government Response
Acknowledged
HM Government
Acknowledged
The IPA strives to build the best-performing project system of any country in the world and is taking bolder action to work towards this ambition and improve outcomes. This work is being done through the publication of Project Principles, the development of a centralised data platform, and Ministerial training. Project Principles are focused on setting up projects for success to deliver real benefits for people and communities across the UK. These principles, alongside the functional standard for project delivery are part of the IPA’s wider endeavour to create a consistent culture of world class project performance. Through the development of the benchmarking capability and a centralised data platform, the IPA is working across Government to ensure that we are more consistent at estimating costs and timescales across departments especially when announcements are made. This work will drive greater cost discipline across departments and implement the basics of proper cost estimation while also supporting Green Book principles. As part of the wider project to develop the Government Projects Academy, the IPA has established training for Ministers, who have a portfolio that includes delivering major projects (as referenced in recommendation 28).