Value for Money
Lessons learned: Governance and decision-making on mega-projects
Recommendations (5)
Source: NAO Recommendations Tracker
HM Treasury; National Infrastructure and Service Transformation Authority
Rec 1
Accepted
Implemented
HM Treasury and NISTA should develop how they categorise major projects
according to their risk and strategic importance. In particular, they should
define a category for ?mega-projects? that may require a different approach to
governance and specify the criteria for giving a project ?mega-project? status
HM Treasury; National Infrastructure and Service Transformation Authority
Rec 2
Accepted
Implemented
HM Treasury and NISTA should consider using alternative governance
approaches for the projects it determines are mega-projects to ensure those
who have the authority to make decisions are accountable for the impact of
those decisions on the project. This could include, for example, HM Treasury
or NISTA having greater involvement in a mega-project during its development
? such as a formal position on a project board ? to provide it with executive
authority and certainty, and to improve alignment between the funder and
delivery organisation during the critical early stages of a mega-project.
HM Treasury; National Infrastructure and Service Transformation Authority
Rec 3
Accepted
Work in Progress
Any alternative governance approach should also ensure that:
? roles and responsibilities are clear across those charged with governance and
those involved with decision-making; this is particularly critical where decisions
and accountabilities stretch across a system or set of organisations;
HM Treasury; National Infrastructure and Service Transformation Authority
Rec 4
Accepted
Implemented
the roles and responsibilities of those who may not be directly involved
in governance but are part of the broader government decision-making
landscape, such as HM Treasury, cross-government or departmental
programme boards, mission and leads, and NISTA, are clear and understood
HM Treasury; National Infrastructure and Service Transformation Authority
Rec 5
Accepted
Implemented
For mega-projects, HM Treasury and NISTA should strengthen the project
gateway and business case approval processes to ensure that government has
assurance about the affordability, value for money and feasibility of the project
before it is given final approval to proceed. This might include only providing
funding to take the project to the next stage of development and maturity.
Each decision stage should provide governance bodies and funders with
assurance that the project?s development should continue. NISTA and those
charged with governance should advise government to stop a project if early
work indicates that the project is too risky and/or costly, or that successful
delivery of the benefits is too uncertain to proceed.