Knowledge Type

Case Study

Organisation

Public Affairs and Accounts Committee

Major Project

Houses of Parliament Restoration and Renewal
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Restoration and Renewal of Parliament

Summary

Palace of WestminsterFor decades there has been broad consensus around the critical need to restore and renew the Palace of Westminster, an iconic UNESCO world heritage site of great historical, cultural and political significance. This is our second report on this essential,
multi-billion pound, infrastructure programme.

Progress is not only unacceptably slow, but the likely start date for major works has been pushed back by many years because of repeated attempts to revisit the basis of the programme. Although some urgent works could be undertaken earlier, there is still no
clear indication of when major works may start. Recent decisions to remove the Sponsor Body have created significant uncertainty and value for money risk. Nugatory spending, including £140 million to install temporary fire safety systems, is already evident. The
uncertainty over progress and the lack of clarity over what will replace the Sponsor Body means skills and expertise critical to the Programme are already being lost.

Recent events have not demonstrated the transparency, openness, accountability, or evidence-based decision-making we expect. There is an unacceptable cloak of secrecy around the programme. The House authorities’ failure to manage asbestos incidents transparently, or with alacrity, underlines an approach which does not welcome scrutiny. Added to this, we saw no evidence to justify the House of Commons Commission’s initial proposal to abolish the Sponsor Body, a decision which reverses decisions made by both Houses of Parliament. Its suggestion that the House authorities oversee the works does not seem viable given their historical performance with Portcullis House and more recently the Elizabeth Tower renovation, which is almost triple its original £29 million budget.

Given this backdrop, and the question of what a restored Palace will look like still unanswered, the programme is at a critical juncture. Parliament’s Accounting Officers need to fulfil their role by setting out publicly what they can feasibly deliver. Transparent,
evidence-based decisions must be made quickly to avoid further unnecessary cost to the taxpayer and prevent putting the safety of this iconic building and those that work in it and visit it at even greater risk. Nearly 200 years ago a fire destroyed part of this building – we do not want it to take another catastrophic incident to finally galvanise action and focus minds’

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Knowledge Type

Guidance/Good practice

Organisation

Deloitte LLP

Major Project

High Speed Rail Programme (HS2)
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Major Programmes: Setting Up for Success

Summary

Deloitte - setting up for successIt is no secret that major programmes typically struggle to come in on time and on budget. A number of reports and academic literature on major programmes from the last decade suggest that these programmes spend an insufficient amount of time setting up the organisation in the right way, with the right capability, to achieve the standards required for delivery throughout the programme lifecycle. This leads to problems further downstream for programmes which cost time and money to resolve.

This Deloitte paper shares a perspective on how major programmes should set up and transition the organisation over time in line with the programme’s needs:

  • Whilst on the surface each major programme may appear to be different, they are ultimately driven by three lifecycles: the ‘Financing’ lifecycle (focusing on investment), the ’Organisational’ lifecycle (focusing on capability), and the ‘Programme’ lifecycle (focusing on delivery milestones).
  • The most effective and successful major programmes prioritise the Organisational Lifecycle – the dynamism of any Major Programme means that its organisation will need to transition its capability and structures several times to continue to be effective, and organisations which do not flex as the programme changes fail to deliver the programme benefits.
  • The single end-to-end framework, ‘Setting up for Success’ is focused on defining, developing, and demonstrating organisational capability from the start across people, processes, and systems. Flexing this to the needs of the programme over time is a critical component to managing delivery and being able to respond to inevitable future unknowns (as was the case for Brexit and COVID-19).
  • The Framework is brought to life in the paper through Deloitte’s work with High Speed 2 Ltd. where they supported the organisation to define, develop and demonstrate that it has the right capability and operating structures in place to begin construction for Phase One of the programme. The work at High Speed 2 Ltd. has subsequently been used as a case study in the Infrastructure Project Authority’s (IPA) Project Routemap providing guidance and best practice to Major Programmes.

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Knowledge Type

Research Paper

Organisation

Sloan Management Review
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Better Ways to Green Light New Projects

Summary

Selecting innovative new projects for further investment and development is critical — and hard. The best R&D projects can renew an organization’s product lines, processes, and services, improving its performance and competitiveness. But deciding which new ideas are winners and which are duds is tough, because new initiatives are characterized by fundamental technological and market uncertainty. Research by Sloan Management Review shows that at many companies, bias and process issues can imperil good decisions.

To improve their track record of choosing the right innovations to bring forward, leaders must first understand where R&D selection panels go wrong. Based on their research, the Review authors have identified five main categories of such issues. Theysuggest specific steps that leaders can take before, during, and after the selection process in order to make more objective, fact-based decisions about which new ideas to green-light. While nothing can eliminate all risk from an inherently speculative endeavor, improving the process can tip the odds in companies’ favor.

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Knowledge Type

Guidance/Good practice

Organisation

RIBA
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Design for Manufacturing and Assembly overlay to the Plan of Work

Summary

The new edition of the the Design for Manufacture and Assembly (DfMA) Overlay to the RIBA Plan of Work (first published in 2016) is based on five years of evolution, including the definition of seven categories of Modern Methods of Construction (MMC), and aligns with the RIBA Plan of Work 2020. The supporting report sets out drivers of change towards a manufacturing mindset as well as explaining why a DfMA approach must be adopted as a default to fulfil the outcomes our industry needs to achieve.

As much as DfMA is a technical process, it is also a philosophy that should be seen as an extension or evolution of the designer’s ordinary way of working – and does not alter the fundamentals of good design and production, which have always been about getting the best possible outcomes for clients and communities.

The DfMA Overlay to the RIBA Plan of Work aims to dispel the myth that DfMA is a barrier to great architecture or reserved just for a few new build sectoral building types. As the case studies in the report clearly highlight, DfMA can produce extraordinary, award-winning architecture, with few limits on where it can be applied. It is relevant to all kinds of projects, including small projects and work on existing buildings.

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Knowledge Type

Guidance/Good practice

Organisation

Net Zero North West Siemens

Major Project

Net Zero North West
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Net Zero North West: Economic Investment Prospectus

Summary

Net Zero North West Investment ProspectusThis Prospectus showcases 18 investment cases across the North West to deliver real impact at the right price, whilst protecting our environment. The Net Zero North West partnership have brought together the stakeholders, challenges and opportunities from across the whole geography to develop the detailed case for economic investment. The prospectus presents supporting exemplar projects that evidence the scalability required for the investments, and provide the platform to deliver the UK’s first net zero region and industrial cluster by 2040.

The investment required, jobs secured / created, greenhouse gas emission reductions and the economic benefit to the North West are developed through analysis and expert insight, which are referenced in the report Annex. The investment numbers are extrapolated from the financial performance of the exemplar projects presented or from project feasibility reports in the UK. The number of jobs secured / created reflect an extrapolation from the exemplars and referenced publicly-available sources. Gross Value Add (GVA) is calculated from the number of jobs utilising UK Government statistics for current GVA performance of the region.

 

 

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Knowledge Type

Guidance/Good practice

Organisation

UK Government
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Garden Communities Toolkit

Summary

A collection of of resources and templates from Gov.UK covering everything needed to deliver a garden communities initiative including:

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  • the business case
  • site feasibility
  • developing the vision
  • stakeholder engagement
  • planning policy
  • masterplanning and design
  • legacy
  • project viability
  • delivery mechanisms
  • governance
  • project management

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Knowledge Type

Guidance/Good practice

Organisation

Infrastructure and Projects Authority Ministry of Defence PA Consulting
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Project Initiation Lessons Learned Report

Summary

An insights study into major project initiation in Defence.

Project InitiationAt the outset of major projects, there is often a strong desire to start delivering value as soon as possible, which is a challenge because
everything seems urgent and important.

This report summarises the findings from interviews conducted with Senior Responsible Owners and Project Directors from five major
Defence projects that revealed a diverse understanding of initiation. This acknowledges that initiation is not just something which happens when a mandate is signed, but may be needed at other points through the lifecycle, for example if there are significant changes in the direction, leadership, team size, or project structure.

The insights in this report, which were gathered from those same interviewees, revealed that building trust is the key success factor
in initiation. By establishing trust between different parties, whether that is within project teams, between projects and their sponsors,
or between projects and wider stakeholders and delivery partners, it is easier to deliver.

The report highlights five key areas in which building trust is key to
successful project initiation. These are

• Leading with confidence
• Seeing the big picture
• Delivering through people
• Planning flexibly
• Making good investment decisions

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Knowledge Type

Guidance/Good practice

Organisation

Copper Consultancy

Major Project

Freeports
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Public Attitudes to Freeports

Summary

Attitudes to FreeportsChampioned by the Chancellor, Rishi Sunak, freeports have emerged as a flagship policy in the government’s ‘levelling up’ agenda as a means to turbo-charge post-Brexit and post-COVID economic recovery by encouraging international trade. Following the announcement of eight successful bids in March’s Budget, This report from Copper Consultancy explores awareness and understanding of the freeport model amongst the public – and what this could mean for the fledgling freeports and others still intent on achieving designation.

Further resources:

Just what does success look like for the Levelling Up Agenda?

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Knowledge Type

Research Paper

Organisation

Department for Transport
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Updating the evidence behind the optimism bias uplifts for transport appraisals

Summary

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RCF was first introduced in UK transport projects in the 2004 report Appraisal Guidance for Optimism Bias as the standard method to adjust estimates to account for biases in project cost estimates. This document provides an update to the 2004 report, bringing much more data into the analysis as evidence for optimism bias uplifts. Drawing on a much larger sample size, this report considers further dimensions of OB in addition to capital costs, e.g. OB on benefits, operational costs and project delivery schedules.

In addition, this report reviews recent methodological developments in RCF, finding that RCF has a track record of providing more accurate forecasts than conventional cost estimation methods. Furthermore, using RCF is found to increase the probability of delivering a project on time and on budget. The treatment of cost inflation is also explored in depth and an RCF for real cost inflation is developed.

Finally, data from 2,522 rail, road, bridge and tunnel new build projects show that risks are even larger at earlier project stages such as at the Outline Business Case and Strategic Outline Business Case stages. The report demonstrates that optimism exists for both cost, schedule, benefit and operational cost forecasts throughout all project stages. A novel insight is that risks mainly diminish in the tail of the distributions of overruns as projects progress, rather than steadily throughout the distribution. This has material implications for recommended OB adjustments for different business case stages.

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Knowledge Type

Guidance/Good practice

Organisation

National Infrastructure Commission
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Vision for the Built Environment

Summary

The National Infrastructure Commission is one of more than 35 bodies which have put their names to Vision for the Built Environment, including the Department for Business, Energy and Industrial Strategy, the Infrastructure and Projects Authority, and the Environment Agency. The manifesto calls for a new long term plan for the management of the UK’s future built environment, at the heart of which is an approach that enables people and nature to flourish together for generations while maintaining the country’s economic prosperity.

New technologies have the potential to make this future vision a reality and allow for the management of the built environment in a way that better addresses the major environmental and economic challenges the country faces. Aligned to the government’s commitment to ‘build back better,’ Vision for the Built Environment calls for people and nature to be at the heart of how the existing built environment – including the country’s infrastructure – is designed, managed, built and used, to ensure that decisions taken now help to deliver better long term outcomes.

The Vision calls for more effective co-ordination of policy making and strategic planning to ensure the country is in the best position to successfully address challenges such as limiting and mitigating the impacts of climate change, reducing waste and the country’s recovery from the impacts of the pandemic. The built environment it says should be regarded as an integrated system of systems and managed accordingly to reduce its impact, with greater use of data and digital integration enabling solutions for more sustainable towns and cities.

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