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, says a new report by CBI and Turner and Townsend
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 through HS2.
Other examples indicate that companies working collaboratively to deliver against ambitious targets has a large correlation to the success of the project, such as the National Highways’ A14 project, and the development of new nuclear power capacity at Sizewell C.
The report suggests transferring oversight of the National Infrastructure Pipeline to the UK Infrastructure Bank to simplify decision-making and prioritisation.
Furthermore, to strengthen governance and accountability, the IPA and Cabinet Office 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 the Autumn Budget, the need to ensure taxpayers’ money is spent wisely could not be clearer, as the UK economy continues its recovery against a backdrop of supply chain challenges which are fuelling rising prices for raw materials.
The research has been developed with industry insight, 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.
‘Achieving net zero and levelling up communities’
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.”
‘Decarbonising our economy’
David Whysall, managing director of UK infrastructure at 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.”
