Recommendations & Conclusions
29 items
2
Conclusion
Thirty-Ninth Report - Lessons from majo…
We are concerned about the continued lack of transparency to Parliament about the progress of government projects. This Committee has examined many programmes where issues were emerging for some time that only became public knowledge much later. For example, the Committee was kept in the dark for over a year …
Government response. 2. 1 The government agrees with the Committee’s recommendation. Target implementation date: July 2021 2.2 The IPA recognises that, to enable effective parliamentary scrutiny, the right type and amount of information about major projects needs to be made available in …
HM Treasury
3
Conclusion
Thirty-Ninth Report - Lessons from majo…
We welcome the IPA’s plans to strengthen how it assures government’s major projects and the recent clarification of it roles and responsibilities, but it remains to be seen whether the IPA will be able to effectively ensure those delivering projects make the level of improvement required. In the past, we …
Government response. 3.1 The government agrees with the Committee’s recommendation. Target implementation date: August 2021 3.2 In 2020, the IPA worked across government to ensure that every project that meets the eligibility criteria is included in the GMPP, which has led to …
HM Treasury
4
Conclusion
Thirty-Ninth Report - Lessons from majo…
There is scope for a more mature approach to setting and monitoring cost and schedule estimates by using ranges which narrow over time. The UK government has some of the most novel and complex programmes in the world. The issues that major programmes face are not unique to the public …
Government response. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2021 4.2 In January 2021, the IPA Chief Executive Officer (CEO) addressed permanent secretaries, requesting that they insist their teams are more realistic and evidence-driven in their approach …
HM Treasury
5
Conclusion
Thirty-Ninth Report - Lessons from majo…
The calibre and number of people in leadership positions in major projects is still not strong enough. Skills and leadership remain a persistent problem in delivering major projects, particularly in getting the appropriate mix of skills across areas such as civil engineering and digital systems. While the tenure of Senior …
Government response. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: August 2021 5.2 The government recognises the importance of appropriate training and continual professional development for all people working on major projects. For clarity, the Major Project Leadership Academy …
HM Treasury
6
Conclusion
Thirty-Ninth Report - Lessons from majo…
It is vital that Parliament’s own major project, the Restoration and Renewal programme, is an exemplar of an open and transparent project which welcomes scrutiny. The restoration and renewal of the Palace of Westminster is a highly complex programme with a number of uncertainties that underpin it, including the condition …
Government response. 6.1 The government disagrees with the Committee’s recommendation. 6.2 The government recognises the importance of the Restoration and Renewal project and the complex challenge it presents. As the Committee acknowledges, R&R is a parliamentary rather than a government project. Therefore, …
HM Treasury
1
Conclusion
Thirty-Ninth Report - Lessons from majo…
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Infrastructure and Projects Authority (the IPA) about the delivery and assurance of government major programmes.1
Government response. Based on a report by the National Audit Office, the Committee took evidence on 30 November 2020 from the Infrastructure and Projects Authority. The Committee published its report on 29 January 2021. This is the government’s response to the Committee’s …
HM Treasury
7
Conclusion
Thirty-Ninth Report - Lessons from majo…
We asked about the capacity of both government and the private sector to deliver large increases in activity efficiently and effectively. The Government’s commitment to reach net zero carbon emissions by 2050 will add further challenges to meeting these commitments.8 The IPA told us that it sees the government’s plans …
HM Treasury
8
Conclusion
Thirty-Ninth Report - Lessons from majo…
The NIC stated that new economic infrastructure must take a cross-sectoral, evidence- based and long-term perspective.11 It said that this should increase the likelihood that the strategic case will remain relevant and persuasive as time goes on, which is likely to make it easier for delivery bodies to match the …
HM Treasury
9
Conclusion
Thirty-Ninth Report - Lessons from majo…
Within the National Infrastructure Strategy, the government also announced the initiatives that had come out of Project Speed, which it set up over the summer to review the infrastructure project life cycle and identify where improvements could be made in delivering them faster. These initiatives include measures such as reforms …
Government response. 1.4 HM Treasury has also established Project Speed, in collaboration with 10 Downing Street and the IPA, to deliver infrastructure projects better, greener and faster. Around 85 Project Speed reforms were announced in the National Infrastructure Strategy in November 2020. …
HM Treasury
10
Conclusion
Thirty-Ninth Report - Lessons from majo…
Government has also made changes to its Green Book guidance on evaluating investment proposals, such as reducing the dominance of benefit-cost ratios (BCRs) in project appraisal and introducing a new public value framework.15 The IPA stated that being fixated on the BCR in the past has tended to lead to …
Government response. 1.3 Spending Review 2020 also embedded a new focus on real-world outcomes and tied spending and performance more closely together, to ensure that spending delivers value for money. Provisional priority outcomes were published for each UK government department, capturing the …
HM Treasury
11
Conclusion
Thirty-Ninth Report - Lessons from majo…
In discussing the historic performance on managing major programmes and the challenges they have faced, the IPA stated that the UK government has some of the most novel and complex programmes in the world, that are probably more complex than many encountered in the private sector. Programmes in both sectors …
HM Treasury
12
Conclusion
Thirty-Ninth Report - Lessons from majo…
The NIC agreed, stating that when building infrastructure, government needs to spend sufficient time at the start deciding on the exact outcomes it wants and the ways those outcomes can be best achieved. This involves rigorous option appraisal and, critically, meaningful engagement with the public and stakeholders to understand key …
HM Treasury
13
Conclusion
Thirty-Ninth Report - Lessons from majo…
The IPA stated that it is working with government to improve the quality of cost estimation and is currently working on a standard for developing guidance on cost estimating. It has also set up a cross-departmental cost estimating community to share best practice.21 The NIC told us that the Government’s …
Government response. 4.2 In January 2021, the IPA Chief Executive Officer (CEO) addressed permanent secretaries, requesting that they insist their teams are more realistic and evidence-driven in their approach to estimations of major project cost and schedule. The IPA will formally set …
HM Treasury
14
Conclusion
Thirty-Ninth Report - Lessons from majo…
The IPA and NIC stated that programmes should provide a reasonable range of outcomes for likely costs and schedule that reflects the level of uncertainty in a programme.23 The Comptroller and Auditor General has also recommended the use of 16 Q 82 17 Q 85 18 Q 3 19 Q …
Government response. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2021 4.2 In January 2021, the IPA Chief Executive Officer (CEO) addressed permanent secretaries, requesting that they insist their teams are more realistic and evidence-driven in their approach …
HM Treasury
15
Conclusion
Thirty-Ninth Report - Lessons from majo…
Skills and leadership remain a persistent problem in delivering major projects. Our report on specialist skills in the civil service concluded that skills shortages were responsible for delays, inefficiencies and increased costs in government projects, with the lack of skills in the Home Office partly responsible for the 3-year delay …
Government response. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: August 2021 5.2 The government recognises the importance of appropriate training and continual professional development for all people working on major projects. For clarity, the Major Project Leadership Academy …
HM Treasury
16
Conclusion
Thirty-Ninth Report - Lessons from majo…
However, the IPA stated that many SROs manage more than one programme, and typically have four or five, which means they are “not being afforded the time in role to do the necessary work.”30 The IPA said that government needed to recruit 25 to 35 more senior responsible owners with …
Government response. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: August 2021 5.2 The government recognises the importance of appropriate training and continual professional development for all people working on major projects. For clarity, the Major Project Leadership Academy …
HM Treasury
17
Conclusion
Thirty-Ninth Report - Lessons from majo…
The IPA told us that, to remedy this issue, in addition to making attendance at the Major Projects Leadership Academy mandatory for SROs, the IPA aims to give them an assessment and an accreditation to ensure that they have the necessary skills for their roles. This is in addition to …
Government response. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: August 2021 5.2 The government recognises the importance of appropriate training and continual professional development for all people working on major projects. For clarity, the Major Project Leadership Academy …
HM Treasury
18
Conclusion
Thirty-Ninth Report - Lessons from majo…
This Committee has examined many government programmes where problems had arisen and were known by those within the programme for some time, but the issues only became public knowledge much later. For example, the Committee was kept in the dark for over a year before being told about the difficulties …
HM Treasury
19
Conclusion
Thirty-Ninth Report - Lessons from majo…
The IPA agreed that creating a culture of transparency and openness are the foundations of effective project delivery. It promotes these values within its principles of project success, namely “Prioritise people and behaviour” and “Tell it like it is”.35 It used Crossrail as an example, where people at the working …
HM Treasury
20
Conclusion
Thirty-Ninth Report - Lessons from majo…
Projects need good data to appropriately track programme performance, but the underlying data which communicates progress can be poor. The Comptroller and Auditor General’s report refers to multiple estimates and numbers being in use within Departments and insufficient or out of date evidence supporting reporting.37 As we noted recently in …
HM Treasury
21
Conclusion
Thirty-Ninth Report - Lessons from majo…
The IPA stated that releasing all data at the detailed level would cause issues within the supply chain. It argued that it does not release its own assurance reviews so that it can have effective and candid discussions with programme leaders, which would be undermined if the reviews were made …
HM Treasury
22
Conclusion
Thirty-Ninth Report - Lessons from majo…
The IPA provides a range of assurance and support services to major programmes, with one of its key activities being gateway reviews of programmes at key decision points, such as each approval stage of the Business Case. Major programmes typically join the GMPP as they approach the strategic outline business …
HM Treasury
23
Conclusion
Thirty-Ninth Report - Lessons from majo…
The IPA considers that while its gateway review process is good, government has not always applied it with the rigour needed.45 This has meant that programmes with significant issues have proceeded through Gateways even when they were given a delivery confidence assessment rating of amber or red. The IPA is …
Government response. 3.3 The IPA recently separated its support and assurance functions to ensure evaluations of projects are consistently robust and impartial. From 2021, the GMPP RAG rating system will be simplified from five categories (Red, Red/Amber, Amber, Amber/Green, Green) to three …
HM Treasury
24
Conclusion
Thirty-Ninth Report - Lessons from majo…
The IPA pointed to the Lower Thames Crossing as a recent example of where it has made meaningful impact on a programme’s delivery. It stated that the programme had an ambitious schedule and was larger than any other scheme that Highways England had taken on before. The IPA refused to …
HM Treasury
25
Conclusion
Thirty-Ninth Report - Lessons from majo…
We noted that the number of projects rated as red has increased from four to eleven in the IPA’s most recent annual report and questioned the IPA on how we should measure its success going forward.49 The IPA stated that one would expect to see more issues being raised in …
Government response. 3.2 In 2020, the IPA worked across government to ensure that every project that meets the eligibility criteria is included in the GMPP, which has led to an increase in the size of the portfolio. The IPA encourages departments to …
HM Treasury
26
Conclusion
Thirty-Ninth Report - Lessons from majo…
The IPA told us that it is looking to introduce metrics to help it understand whether it is making a material difference to projects passing through stage gates, and what impact it is having on programmes that are underway.51 The IPA also told us it has in place a “get …
Government response. 3.2 In 2020, the IPA worked across government to ensure that every project that meets the eligibility criteria is included in the GMPP, which has led to an increase in the size of the portfolio. The IPA encourages departments to …
HM Treasury
27
Conclusion
Thirty-Ninth Report - Lessons from majo…
Since the IPA’s remit covers the government major programmes portfolio, it does not extend to the restoration and renewal of the Houses of Parliament, or the associated Northern Estates programme.54 The Restoration and Renewal programme is overseen by a Sponsor body and a Delivery authority, both of which are ultimately …
Government response. 6.1 The government disagrees with the Committee’s recommendation. 6.2 The government recognises the importance of the Restoration and Renewal project and the complex challenge it presents. As the Committee acknowledges, R&R is a parliamentary rather than a government project. Therefore, …
HM Treasury
28
Conclusion
Thirty-Ninth Report - Lessons from majo…
Whilst the IPA has provided support and advice in an advisory capacity to the programme, it does not currently fall within the IPA’s formal remit. The IPA was engaged in implementing the recommendations of the Joint Committee report on the Palace of Westminster of September 2016, and did support the …
Government response. 6.1 The government disagrees with the Committee’s recommendation. 6.2 The government recognises the importance of the Restoration and Renewal project and the complex challenge it presents. As the Committee acknowledges, R&R is a parliamentary rather than a government project. Therefore, …
HM Treasury
29
Conclusion
Thirty-Ninth Report - Lessons from majo…
When asked, the IPA stated that it could not see a reason why it could not provide further assurance over the programme, if asked to by Parliament.59 When we reported on the programme in October 2020, we welcomed the decision of the Sponsor body to engage with the IPA and …
Government response. 6.1 The government disagrees with the Committee’s recommendation. 6.2 The government recognises the importance of the Restoration and Renewal project and the complex challenge it presents. As the Committee acknowledges, R&R is a parliamentary rather than a government project. Therefore, …
HM Treasury