Background to the report
Major projects are one of the main ways the government delivers its objectives. They provide economic infrastructure such as roads, railways and power stations, and social infrastructure such as hospitals and schools. They also support the transformation and improvement of public services. The government spends substantial amounts of public money on these projects.
Jump to downloadsOn 31 March 2024, the Government Major Projects Portfolio (GMPP), which comprises the government’s largest, most innovative and most risky projects, included 227 projects at a combined whole-life cost of £834 billion. Within the GMPP are a small number of projects, such as big railway or energy projects, that are particularly costly, innovative, risky, complex and/or strategically important. We are calling these ‘mega-projects’.
Governance is the system that provides a framework for managing organisations or projects and making decisions. It includes both formal structures and processes, and people and behaviours. In major and mega-projects, good governance is clear about who has authority and accountability and about the role of the investing organisation in defining and controlling a project. It also emphasises the importance of outcomes, benefits and value, as well as cost.
The government is currently making several changes that will affect the governance of major projects.
- The government intends to frame future delivery around five missions, some of which cut across government departments. It is setting up mission boards to deliver against these priorities, although is not yet clear how these boards will align with departmental boards or programme boards.
- It intends to publish a 10-year infrastructure strategy setting out the government’s plans for infrastructure in the public and private sectors at the same time as the Spending Review in mid-2025. It also aims to reform the system for granting planning approval for infrastructure projects.
- It is creating the National Infrastructure and Service Transformation Authority (NISTA) by bringing together the functions of the Infrastructure and Projects Authority and the National Infrastructure Commission. NISTA will combine strategy and delivery of infrastructure and will be responsible for overseeing the implementation of the 10-year infrastructure strategy with industry, regulators and departments.
- It has set up the Office for Value for Money to reduce waste and inefficiency, scrutinise investment proposals and make suggestions for system reform.
Scope of the report
The purpose of this report is to improve how government approaches strategic governance and decision-making in the largest, riskiest and most complex major projects as it makes changes to the way in which major projects are organised and overseen. We have seen that the repercussions of poor governance and decision-making in these mega-projects are potentially greater than for other more standard major projects. The report:
- sets out some characteristics of ‘mega-projects’, and some thoughts on why standard models of governance and oversight may not be effective for these projects, and
- examines governance in the early stages and throughout delivery for mega-projects.
The report ends with questions for project sponsors to consider. We set out recommendations for the centre of government. We have examined major projects across different parts of government and at different stages of delivery over many years. For this report, we have reviewed a sample of projects that we covered in these reports and examined whether and how governance and decision-making enabled the government to manage risks and make timely decisions. We also interviewed officials, and tested our insights with delivery departments, centre of government and external experts.
This report is not an exhaustive account of how governance works on major projects, nor about all governance challenges faced by major projects. We do not seek to reproduce or revise the comprehensive guidance on project management techniques and effective governance of major projects that already exists. It is critical that departments understand and use that guidance as they develop and deliver their major projects.
Downloads
- Report - Governance and decision‑making on mega‑projects (.pdf — 282 KB)
- Summary - Governance and decision‑making on mega‑projects (.pdf — 91 KB)
- ePub - Governance and decision‑making on mega‑projects (.epub — 270 KB)
Publication details
- ISBN: 978-1-78604-594-2 [Buy a hard copy of this report]
- HC: 545, 2024-25
Press release
View press release (14 Mar 2025)