Recommendation 12

Mega-projects display several characteristics which, when taken together, make them more difficult to deliver than major projects. They often have the potential to be transformational to the economy or society and are scentral to the government’s efforts to achieve its priorities. They may involve high levels of innovation or be the first of their type. The benefits of these projects can affect many parts of society, the economy and the environment; therefore, they cut across the interests of multiple departments and agencies. The environment in which mega-projects are delivered is often highly complex and challenging–primary legislation may be required, they may have multiple stakeholders, be delivered over multiple electoral and economic cycles, and involve extensive supply chains. Also, they often have a combination of high cost, risk and uncertainty, so that cost increases can dominate the financial position of a department. Finally, mega-projects can require substantial time for value and benefits to materialise.23