Lessons from major projects and programmes
Public Accounts Committee
Closed
Inquiry
The Government Major Projects Portfolio currently comprises 125 major programmes at a combined cost of £448 billion - and in addition, government has committed to spending £640 billion for new infrastructure projects between now and 2025. The ability of government to successfully navigate the unique and novel challenges of delivering …
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6
Recommendations
23
Conclusions
1
Report
1
Oral session
2
Letters
1
Event
Activity timeline 5 events
16 Nov
2021
2021
14 Sep
2021
2021
Correspondence
26 Mar
2021
2021
29 Jan
2021
2021
Report published
30 Nov
2020
2020
Oral evidence
Oral evidence sessions 1 session
30 Nov 2020
View on parliament.uk
Lessons from major projects and programmes
Matthew Vickerstaff · NISTA
Nick Smallwood · Infrastructure and Projects Authority
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Thirty-Ninth Report - Lessons from major projects and programmes | HC 694 | 29 Jan 2021 | 29 | Responded |
Recommendations & Conclusions
29 results
2
Recommendation
Accepted
Thirty-Ninth Report - Lessons from…
We are concerned about the continued lack of transparency to Parliament about the progress of...
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 …
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Government Response
The government agreed to the recommendation, outlining that the IPA's annual report will have reduced lag time, will publish aggregate GMPP benefits data, and from April 2021, projects will publish summary business cases, close-out reports, and long-term evaluations.
HM Treasury
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3
Recommendation
Accepted
Thirty-Ninth Report - Lessons from…
We welcome the IPA’s plans to strengthen how it assures government’s major projects and the...
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 …
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Government Response
The government agreed, stating the IPA has separated support and assurance functions, simplified the RAG rating system, and will require IPA approval for project advancement, prohibiting red-rated projects from proceeding. The IPA will write to the Committee within six months with updates on red/red-amber projects.
HM Treasury
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4
Recommendation
Accepted
Thirty-Ninth Report - Lessons from…
There is scope for a more mature approach to setting and monitoring cost and schedule...
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 …
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Government Response
The government agrees and will publish "Best Practices for Cost Estimating" by March 2021, requiring departments to use narrowing cost and schedule ranges on a "comply or explain" basis, and will offer additional training and pilot a centralised data platform from March 2021.
HM Treasury
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5
Recommendation
Accepted
Thirty-Ninth Report - Lessons from…
The calibre and number of people in leadership positions in major projects is still not...
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 …
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Government Response
The government agrees, confirming mandatory training for SROs and PDs via MPLA and PLP, and plans to launch the Government Projects Academy in 2021 to standardize training and accreditation, with a progress update within six months. The IPA is also enhancing its data analysis for project profession capacity.
HM Treasury
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6
Recommendation
Rejected
Thirty-Ninth Report - Lessons from…
It is vital that Parliament’s own major project, the Restoration and Renewal programme, is an...
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 …
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Government Response
The government rejects the recommendation for the IPA to formally scrutinize the R&R project, stating it is a parliamentary project outside the GMPP and any formal involvement would require a specific invitation from Parliament and amendment to existing agreements.
HM Treasury
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1
Conclusion
Not Addressed
Thirty-Ninth Report - Lessons from…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
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
The government acknowledges the committee's procedural opening statement, confirming the report's basis and the evidence-taking process.
HM Treasury
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7
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
We asked about the capacity of both government and the private sector to deliver large...
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 …
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Government Response
The government agrees with the committee's observations, highlighting existing measures taken by HM Treasury to ensure delivery capacity, such as integrating deliverability checklists into spending proposals, embedding an outcomes-focused approach in Spending Review 2020, and establishing Project Speed with its 85 reforms from the National Infrastructure Strategy.
HM Treasury
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8
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
The NIC stated that new economic infrastructure must take a cross-sectoral, evidence- based and long-term...
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 …
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Government Response
The government agrees, outlining steps already taken or underway including integrating deliverability into planning, implementing an outcomes-focused approach in Spending Review 2020, and establishing Project Speed to improve infrastructure project delivery. HM Treasury will provide further information to the Committee within six months.
HM Treasury
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9
Conclusion
Not Addressed
Thirty-Ninth Report - Lessons from…
Within the National Infrastructure Strategy, the government also announced the initiatives that had come out...
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 …
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Government Response
The government described Project Speed as an initiative to deliver infrastructure projects better, greener, and faster, mentioning 85 reforms announced in November 2020, and stated its focus on implementing these, but did not address the committee's concern about hindering scrutiny.
HM Treasury
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10
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
Government has also made changes to its Green Book guidance on evaluating investment proposals, such...
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 …
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Government Response
The government highlights its existing implementation of the Public Value Framework from Spending Review 2020, which focuses on real-world outcomes and provisional priority outcomes for departments, aiming to place these front and centre in planning and delivery.
HM Treasury
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11
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
In discussing the historic performance on managing major programmes and the challenges they have faced,...
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 …
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Government Response
The government agrees with the committee's observations and outlines existing measures like integrating deliverability checklists into spending proposals, the outcome-focused approach of Spending Review 2020, and the establishment of Project Speed and its reforms to improve delivery and achieve value for money.
HM Treasury
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12
Recommendation
Accepted
Thirty-Ninth Report - Lessons from…
The NIC agreed, stating that when building infrastructure, government needs to spend sufficient time at...
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, …
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Government Response
The government agrees with the recommendation, highlighting ongoing efforts to integrate deliverability and feasibility into planning, establish an outcomes-focused approach via the Public Value Framework, and implement 85 Project Speed reforms. HM Treasury will provide a detailed update to the Committee within six months.
HM Treasury
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13
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
The IPA stated that it is working with government to improve the quality of cost...
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 …
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Government Response
The government outlines new actions to improve cost estimation, including the IPA issuing new "Best Practices for Cost Estimating" in March 2021 with formal requirements, providing additional SRO training, and developing a centralized data platform for project cost and schedule data, which will be piloted from March 2021.
HM Treasury
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14
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
The IPA and NIC stated that programmes should provide a reasonable range of outcomes for...
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 …
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Government Response
The government agrees and will publish "Best Practices for Cost Estimating" by March 2021, formally requiring departments to use narrowing cost and schedule ranges on a "comply or explain" basis, and will provide additional training for SROs and pilot a new centralised data platform.
HM Treasury
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15
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
Skills and leadership remain a persistent problem in delivering major projects.
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 …
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Government Response
The government agrees and outlines several concrete actions including mandatory training for SROs and PDs, new requirements in the refreshed IPA Mandate for SRO appointments, and IPA CEO approval for SRO movements. The IPA will provide an update within six months.
HM Treasury
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16
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
However, the IPA stated that many SROs manage more than one programme, and typically have...
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 …
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Government Response
The government agreed, outlining new requirements for SRO appointments, including confirmation letters, expected time commitment, mandatory training, and notification if an SRO manages multiple programs. IPA CEO approval will be required for all SRO appointments to GMPP projects, and SROs cannot leave without consent.
HM Treasury
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17
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
The IPA told us that, to remedy this issue, in addition to making attendance at...
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 …
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Government Response
The government agreed, detailing mandatory training for SROs via the refreshed MPLA and PLP, and piloting a new training program for ministers. New requirements for SRO appointments include confirmation letters, expected time commitment, and necessary training.
HM Treasury
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18
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
This Committee has examined many government programmes where problems had arisen and were known by...
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 …
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Government Response
The government agrees with the recommendation and is taking specific steps to improve transparency, including refreshing the IPA's annual report to halve data lag time, publishing aggregate project benefits data, and ensuring major projects publish summary business cases and close-out reports from April 2021.
HM Treasury
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19
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
The IPA agreed that creating a culture of transparency and openness are the foundations of...
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 …
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Government Response
The government agrees with the implicit recommendation for transparency, outlining the IPA's Transparency Policy, significant improvements to the annual GMPP report (reducing data lag and publishing benefits data), and the upcoming publication of summary business cases and close-out reports for GMPP projects.
HM Treasury
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20
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
Projects need good data to appropriately track programme performance, but the underlying data which communicates...
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 …
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Government Response
The government agrees and will implement new requirements for departments on cost and schedule estimations through "Best Practices for Cost Estimating" by March 2021, offer additional training, and pilot a centralised data platform to improve data quality and future project estimations.
HM Treasury
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21
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
The IPA stated that releasing all data at the detailed level would cause issues within...
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 …
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Government Response
The government commits to halving the lag time for GMPP data to four months, publishing aggregate GMPP project benefits data, and confirms that projects will begin publishing summary business cases and long-term evaluations from April 2021.
HM Treasury
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22
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
The IPA provides a range of assurance and support services to major programmes, with one...
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 …
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Government Response
The government agrees with the implicit recommendation to enhance IPA's independence and scrutiny, outlining specific steps such as separating support and assurance functions, simplifying the RAG rating system, making IPA support mandatory for project advancement, and preventing red-ranked projects from proceeding. The IPA will update the Committee within six months.
HM Treasury
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23
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
The IPA considers that while its gateway review process is good, government has not always...
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 …
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Government Response
The government details new IPA assurance measures, including separating support and assurance functions, simplifying the GMPP RAG rating to three categories, and making IPA support mandatory for projects to progress through HM Treasury Approval Points, ensuring red-ranked projects cannot proceed until issues are resolved.
HM Treasury
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24
Conclusion
Accepted
Thirty-Ninth Report - Lessons from…
The IPA pointed to the Lower Thames Crossing as a recent example of where it...
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 …
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Government Response
The government agrees and is strengthening the IPA's role by ensuring all eligible projects are on the GMPP, requiring IPA support for project advancement, simplifying RAG ratings, and confirming that projects ranked 'red' will not proceed until risks are managed. The IPA will also update the Committee on progress for Red/Amber projects within six months.
HM Treasury
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25
Conclusion
Acknowledged
Thirty-Ninth Report - Lessons from…
We noted that the number of projects rated as red has increased from four to...
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 …
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Government Response
The government explains that an increase in red projects reflects a more comprehensive GMPP portfolio. It outlines how the IPA has improved support and scrutiny for projects and has recently reformed its assurance functions, including simplifying the GMPP RAG rating system and making IPA support mandatory for project progression, particularly restricting red-ranked projects until risks are managed.
HM Treasury
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26
Conclusion
Acknowledged
Thirty-Ninth Report - Lessons from…
The IPA told us that it is looking to introduce metrics to help it understand...
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 …
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Government Response
The government details how the IPA has improved project inclusion in the GMPP and reformed its assurance functions, including simplifying the RAG rating system and making IPA support mandatory for project progression, which are intended to enhance impact on programme performance.
HM Treasury
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27
Conclusion
Rejected
Thirty-Ninth Report - Lessons from…
Since the IPA’s remit covers the government major programmes portfolio, it does not extend to...
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 …
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Government Response
The government rejects the implicit recommendation for formal IPA scrutiny of the R&R project, explaining that as a parliamentary project, it is not part of the GMPP and formal involvement would require an invitation from Parliament and amendments to existing agreements.
HM Treasury
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28
Conclusion
Rejected
Thirty-Ninth Report - Lessons from…
Whilst the IPA has provided support and advice in an advisory capacity to the programme,...
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 …
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Government Response
The government rejects the implicit recommendation for formal IPA scrutiny of the R&R project, explaining that as a parliamentary project, it is not part of the GMPP and formal involvement would require an invitation from Parliament and amendments to existing agreements.
HM Treasury
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29
Conclusion
Rejected
Thirty-Ninth Report - Lessons from…
When asked, the IPA stated that it could not see a reason why it could...
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 …
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Government Response
The government rejects the implied recommendation, explaining that the Restoration and Renewal project is parliamentary, not governmental, and therefore not subject to formal IPA assurance under the GMPP or HM Treasury. Formal IPA scrutiny would require an invitation from Parliament and amendments to existing agreements.
HM Treasury
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Correspondence 2 letters
16 Nov 2021
Correspondence from Alex Chisholm, Civil Service Chief Operating Officer and Cabinet Office Permanent Secretary, and Catherine Little, Director General Public Spending, HM Treasury, re TM39 Report of Session 2019-21 – Lessons from major projects and programmes, dated 29 October 2021
Parliament page
14 Sep 2021
Written evidence submitted by Amit Bhagwat
Parliament page