Institution of Civil Engineers identifies how to overcome four common infrastructure delivery challenges

• The government should make better use of existing data to improve cost estimates 
• The delivery of the 10 Year Infrastructure Strategy should permanently sit with the Chief Secretary to the Treasury
• To rebuild trust in government, public engagement about the benefits of infrastructure is essential

What do HS2, Hinkley Point C, and California’s high-speed rail have in common? They are all major infrastructure projects that faced delays and escalating costs. 

Unfortunately, this is not uncommon. Research from Saïd Business School found that of 3,022 projects examined only 0.2% were on budget, on time, and delivered the benefits promised to the public at the outset of the project. 

Escalating costs and delays to projects are also increasing distrust in governments around the world.

This creates a vicious cycle in which the government is the client for major infrastructure projects, but the public doesn’t believe it can deliver. 

Recent ICE polling found that 55% of the British public believe that infrastructure projects are underfunded and many (44%) believe that the government should be the main funder of major infrastructure projects. The UK public also sees ‘poor project management’ as one of the top barriers to successful delivery. 

The research paints a clear picture: there’s some way to go to increase the public’s confidence in the ability of the UK government to successfully fund and deliver projects. 

How can the UK deliver the infrastructure it needs without projects costing so much and taking so long?  

The Institution of Civil Engineers (ICE) has identified four key challenges to delivering major infrastructure projects and made several recommendations to address them in a new policy paper, Why do major projects cost so much and take so long? And what can be done about it? 

The ICE drew on interviews and written submissions from industry decision-makers, infrastructure professionals, civil society groups and other stakeholders to identify the biggest challenges and suggest potential solutions. 

Challenge one – it’s difficult to estimate what projects will cost 

Even when a project has a clearly defined vision and requirements, forecasting its costs and the time it will take to deliver is a complex process that’s prone to inaccuracies. 

Some best-practice approaches, such as reference class forecasting, are explored in the ICE’s paper, but its key recommendation is that the government should make better use of the data it already collects through the project assessment process.  

The ICE suggests that the National Infrastructure and Service Transformation Authority (NISTA) build a searchable database of major delivery project data. This information could be used to inform future estimates, comparisons, and forecasting tools. 

Challenge two – Project leadership and decision-making is fragmented and too politicised 

Political decision-making and shifting political priorities can have a profound impact on projects. In an environment where public funds are tight, government departments must compete for budget. 

This affects every stage of projects. 

It isn’t possible (or desirable) to remove political decision making from infrastructure delivery in a democracy, but the ICE believes that political structures can be set up to provide certainty beyond parliamentary cycles. 

To improve coordination across government, the ICE recommends that the Chief Secretary to the Treasury (CST) should be permanently responsible for the 10 Year Infrastructure Strategy and its future iterations. 

It also says that a cabinet committee should support infrastructure policy coordination. Such a committee would bring together relevant secretaries of state, junior ministers and senior civil servants to discuss infrastructure-related decisions.  

The ICE believes this would enable more joined-up decision making. 

Challenge three – The government lacks delivery capability 

Government is usually the client for major infrastructure projects, but some departments lack delivery experience.  

The ICE recommends that the UK government clarify and streamline assessment, assurance structures and responsibilities, and establish a ‘roving delivery unit’ as part of NISTA. 

This roving team should comprise senior government infrastructure leaders and could support public bodies with limited project expertise. 

Challenge four – Public trust is low 

Infrastructure is a long-term investment in the future of a society, but too often, the conversation is dominated by costs and benefits are forgotten. 

Recent ICE polling found that 62% of the public think that information about infrastructure projects is poorly communicated, meaning there is a significant opportunity to provide better information. 

To address this, the government needs to engage with the public through NISTA and the CST. 

Engagement should focus on two things – the benefits that infrastructure can deliver, and what trade-offs need to happen to make sure that the infrastructure the UK needs is deliverable. 

John Pelton, MBE FICE FInstRE FAPM, ICE Policy Fellow, who chaired the ICE steering group for the report, said, “The government has an ambitious 10-year infrastructure strategy that will fail to deliver flat if it doesn’t address fundamental delivery challenges.  

“Change is needed, but reinventing the wheel isn’t necessary. Making better use of existing data and clarifying who has the responsibility to drive the infrastructure portfolio forward will go a long way to improving matters.  

“The UK needs infrastructure for economic growth and to meet its environmental and social goals. The government’s focus must now turn from what we need to how we can deliver it well."

Notes to editors

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