ICE Presidential Roundtable: improving major infrastructure project delivery

Cost overruns and delays persist as challenges in major infrastructure projects worldwide, impacting efficiency, straining public budgets, and reducing economic returns.

In the UK, the National Infrastructure Commission has found that on average, infrastructure projects could reduce cost overruns by 10-25% if they adopt best practice delivery approaches. They identified four key cost drivers:

• a lack of clear strategic direction;
• challenges with project clients and sponsors;
• inefficient consenting and compliance; and
• a constrained supply chain.

But the UK is far from alone on this. A McKinsey study of more than 500 global projects found that only 5% of projects were completed within their original budget and schedule. The average project ran 37% over budget and 53% over schedule.

Ahead of an upcoming ICE green paper programme on major project delivery, this roundtable event convened industry experts to discuss what might be done to address these challenges.

Key points covered in the discussion included that:

• The UK needs to change the narrative on the success of its major project delivery capacity. The country delivers many public infrastructure projects effectively, but there is still room for improvement.
• Assurance and approval processes can be made more efficient and effective, including by being clear about the purpose of the questions asked of projects at different stages.
• There has not been enough focus on reducing the cost and improving the quality of project inputs, or on value-generating activities and production systems.
• Early and thorough planning is crucial. Small teams that plan strategically are more effective than larger teams that focus on spending and activity.

You can read the full write up of the discussion below.