High Speed Two: A progress update

On the High Speed Two programme: a) the Department should periodically assure itself about the feasibility of completing the programme to agreed revised opening dates and the likely success of actions to improve delivery confidence, and whether any delays against schedule are reducing the time allocated for the critical stages of systems integration and testing of the railway;

Ref Page 13, paragraph 28, point a · Implemented 06/2022

b) the Department and HS2 Ltd should develop a common set of management information, so that they can clearly and consistently track performance on the programme and identify when risks are emerging. The management information should use consistent terminology and definitions and include the rationale for any changes. It should also be clear about what the Department and HS2 Ltd are measuring the programme costs and schedule against, for example the difference between the forecast cost of the programme, the budget and the target cost;

Ref Page 13, paragraph 28, point b · Implemented 06/2021

c) while we support the use of cost and schedule ranges in major programmes, the Department and HS2 Ltd should have a plan to narrow the range as the programme goes on. This plan should reflect the level of risk remaining in the programme;

Ref Page 13, paragraph 28, point c

d) the Department should assure itself that HS2 Ltd has the capabilities it needs to deliver the programme, including the capability needed to manage the revised commercial approach for main civil construction. This assessment should recognise that HS2 Ltd will need a range of skills because the phases of the programme will be at different stages of maturity;

Ref Page 14, paragraph 28, point d · Implemented 06/2021

e) following its review of sponsorship arrangements for major projects, the Department should ensure that it has appropriate arrangements to gain assurance on programme delivery, while also providing HS2 Ltd with sufficient freedom to deliver the programme; and

Ref Page 14, paragraph 28, point e · Implemented 12/2022

f) HM Treasury, the Department and HS2 Ltd should take decisions on the scope and available funding for the programme, taking into account the trade-offs between cost and benefits. It should reflect a realistic assessment of the full cost of the programme and include appropriate contingency. It should also include the potential impact on cost, schedule and benefits of decisions made during parliamentary scrutiny of the Phase Two hybrid bills and provide this information to Parliament.

Ref Page 14, paragraph 28, point f

On programme management the government should: a) ensure that it takes appropriate account of the limitations of cost benchmarking information when using this approach to estimate costs. It should also use other available sources of information on costs;

Ref Page 14, paragraph 29, point a · Implemented 06/2021

b) be realistic about the cost of complex and ambitious programmes and not assume arbitrary efficiency savings to make them affordable within available funding. Targets should be based on a realistic assessment of how robust cost control and different approaches to delivery can lower costs; and

Ref Page 14, paragraph 29, point b · Implemented 06/2021

c) throughout the life of a programme, consider setting ranges for cost estimates and completion dates to reflect uncertainty, with a point estimate within this range set to help delivery bodies and programme sponsors closely manage performance.

Ref Page 14, paragraph 29, point c · Implemented 06/2021