Managing infrastructure projects on nuclear-regulated sites

Over the past three years, the Department has introduced revised governance arrangements and developed its relationship with regulators. As well as embedding these changes, the Department should, for these and future projects:
a) undertake work to better understand, quantify and manage the inherent risks presented by the regulatory arrangements. Although not having a statutory regulatory role, the Department should work with regulators and site operators so that all parties understand value-for-money risks with designs and consider these risks through formal discussions;

b) more explicitly recognise and manage the inherent uncertainties associated with the early stages of these projects. For each project, the Department should consider the appropriate milestones needed to reassess progress alongside the remaining uncertainties and flexibility needed. This should be balanced against allowing teams to press forward with projects;

c) agree commercial arrangements with site operators that better balance risks and ensure they share some risks, particularly as projects progress. The Department should fully consider using all available levers to reduce its risk exposure, including the Single Source Contract Regulations or by splitting commercial arrangements into stages with agreed milestones for defined work;

d) put the structures in place to understand and manage interdependencies between projects. The Department may need to take some risks by starting projects early given interdependencies across the Enterprise, and the uncertainties associated with future requirements. When it does so, the Department should ensure it recognises and manages the potential impact of these decisions;

e) introduce ways to identify and apply lessons learned from other projects, both within the Department and from other sectors. Infrastructure projects at civil, military and overseas nuclear-regulated sites have experienced similar problems over the years, which have been the subject of multiple reviews. The Department should work across government to share lessons learned on how to challenge, interpret and apply regulations to achieve value for money; and

f) continue efforts to develop nuclear capacity and skills within the Department and its contractors. As well as investing in graduate programmes and apprenticeship schemes, and working with civil nuclear colleagues, the Department should think more broadly as to how it can sequence its major projects to develop a smoother work profile and more stable job market. It should think innovatively about how to increase staff capacity, such as requiring contractual partners to maintain a minimum number of experienced specialist staff.