Major and Strategic Projects, including Capital Projects

Background

Major projects of investment and transformation can be high profile, complicated, fast-paced and undertaken in an environment with some degree of uncertainty.  For publicly funded bodies, stakeholders including tax payers are increasingly focussed on the extent to which major and strategic projects, including capital projects, demonstrate:

• transparency and clear accountability, including proactive public communication
• sound financial and other resource management
• robust project management to deliver progress against milestones; and
• clear delivery of expected objectives and benefits.

In 2022, the Government spent nearly £100 million on capital and major projects.  The Government Plan 2023 to 2026 includes investment of almost £400 million in capital and major projects, excluding investment in new healthcare facilities.

The C&AG has undertaken a number of reviews that relate to major and strategic projects, including capital projects.  These include:

• Integrated Technology Solution – Follow Up (April 2023); and
• Learning from Previous Hospital Projects: A Follow Up Review (May 2023).

In this review the C&AG has considered the overall arrangements for managing major and strategic projects as a portfolio, including how the Government considers and monitors the deliverability of the overall programme.  The C&AG has also considered a sample of completed and ongoing projects against identified best practice.  The projects reviewed are:

• Office Accommodation Project
• Replacement Bellozanne Sewage Treatment Works
• Combined Fire and Ambulance Station; and
• Mental Health Improvements (Orchard House).

Scope

In this review the C&AG has considered the overall arrangements for managing major and strategic projects as a portfolio.  This included assessment of the relative roles between client departments and supplier/contractor departments to ensure clarity in these roles.   It also included assessment of how the Government considers and monitors the deliverability of the overall programme.

The C&AG has also considered a sample of completed and ongoing projects against the Good Practice Framework developed by the UK National Audit Office.

Under the requirements of the Public Finances Manual (PFM), every Major and Strategic Project is subject to an internal audit during the life of the project.   Other projects ‘may be assessed as required’.  The review has considered relevant work undertaken by the Government of Jersey Internal Audit function.

The projects reviewed were:

• Office Accommodation Project
• Replacement Bellozanne Sewage Treatment Works
• Combined Fire and Ambulance Station; and

Mental Health Improvements (Orchard House).

Conclusions

Going forward the challenge for Government is ensuring compliance with the good practice Frameworks that have been established for major and strategic projects, including capital projects.  Key to this will be education, training and the reinforcement of a culture across the Government that understands that project delivery is not an end in itself.  It is instead a means to an end, which is to provide wider benefit to the residents of Jersey.

Improving the way in which benefits realisation is identified, recorded and monitored will be critical in demonstrating that the programme of major and strategic projects, including capital projects, delivers value for money.