Strengthening the role of the Infrastructure and Projects Authority (IPA) to
improve major project delivery can help the Government’s net zero and levelling
up agendas, according to a new report from the CBI and global professional
services consultancy Turner & Townsend.
Programmes with Purpose: delivering success in Government’s major
projects sets out a series of recommendations to improve the delivery of
the Government’s Major Projects Portfolio (GMPP) across a range of critical
sectors including transport, utilities and defence. Expenditure across
the GMPP stood at £524 billion according to the latest figures, but with almost
three quarters (135 / 184) of major projects currently falling behind
expectations to deliver their objectives on time and on budget.
A key recommendation is for the IPA to work with the Cabinet Office to
publish a Major Projects Playbook, setting out expectations and best practice
on project delivering social value, meeting carbon commitments and
embedding export potential as a key benchmark of project success. The
objective behind the playbook should be to break down siloes that exist between
different areas of sector specialism, helping to establish a connected major
projects ‘industry’.
The report includes 13 case studies examining the positive ripple effects of
successful major projects, from exporting expertise in defence through the Type
31 Frigate programme, to the creation of tens of thousands of jobs across the
country via HS2. Other examples of best practice show success rests upon
companies working collaboratively to deliver against ambitious targets,
including on National Highways’ A14 project and the development of new nuclear
power capacity at Sizewell C.
It also recommends transferring oversight of the National Infrastructure
Pipeline to the UK Infrastructure Bank; simplifying decision-making and
prioritisation. To strengthen governance and accountability, the IPA and
Cabinet Office, with insights from leading private sector partners, should
explore what incentives could help reduce churn among people leading major
projects, defined as senior responsible owners. The report also proposes
a Project Support and Delivery Unit is established within the IPA to provide
advice and support to major projects.
Following last month’s Budget, the need to ensure taxpayers’ money is spent
wisely could not be clearer as the UK economy continues its recovery,
especially against a backdrop of supply chain challenges fuelling rising prices
for raw materials and increasing interest rates.
The research has been developed with insight from industry and builds on the
publication of the Outsourcing and Construction Playbooks and updates to its
Project Routemap – which have been well-received by businesses navigating an
already complex environment.
Programmes with Purpose also includes a comprehensive reference
guide which shows how its findings align with existing policy and
guidance.
Matthew Fell, CBI Chief Policy
Director, said: “If
levelling up and net zero are to become a reality, successfully delivering
major projects right across the country must become the norm rather than the
exception.
“A brief examination of the Government’s own statistics reveals the scope
for significant improvements across all areas of delivery.
“Beefing up the role of the Infrastructure and Projects Authority will
enable it to directly inject greater expertise into major projects, supporting
both clients and suppliers.
“Elsewhere, churn of major project leaders in both the public and private
sectors has dogged delivery for years, so we need to find a way to reduce the
loss of institutional knowledge.
“And post-COP26, the need for action on carbon emissions in major projects
could not be clearer. Ultimately, this report represents the business
contribution to improving major project delivery. Getting this right can
improve value for money for taxpayers and meaningfully contribute to government
commitments on achieving net zero and levelling up communities.
“Given the urgency of delivering transformational projects across the length
and breadth of the country, there isn’t a moment to lose.”
David Whysall, Managing Director of
UK Infrastructure, Turner & Townsend, said: “The
strength of the UK’s pipeline for government-backed major projects creates a
once in a generation opportunity to address regional inequalities and
decarbonise our economy – not only in terms of what they
achieve, but how they are brought forward. Whether working
on transport programmes, defence capability, social infrastructure, technology
or manufacturing, the delivery and execution needs to be world
leading.
“The fact remains that as an industry we are not connected and not
performing either consistently or frequently at this level. Amazing expertise
already exists within individual programmes and sectors, but we need to capture
and scale it. We have also seen transformative steps taken through initiatives
including the Construction Playbook, IPA Routemap, Value Toolkit and
CO2nstructZero. We now need the Government to show leadership through
consolidating these achievements and acting on the recommendations in our
report to establish a globally leading, exportable major projects industry.”
Peter Caplehorn, Chief Executive,
Construction Products Association, said: “Infrastructure has
consistently been one of the key drivers of construction activity in the UK,
yet the sector suffers from pervasive problems that diminish productivity,
innovation and value for money. This report goes a long way in
illuminating those issues, particularly on the client side, and recommending a
number of reasonable, manageable solutions. Ultimately, we need government
to be a more informed, smart client, raising the bar for industry and driving
better delivery. Taking this report’s recommendations forward would be a
step-change not only for the infrastructure sector but for UK construction.”
