Management of Major Rail Projects

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Tabled: 23 June 2010

The audit examined how well the Department of Transport (the department) had managed recent rail projects and whether it had addressed past weaknesses. The five rail projects included were Middleborough Road grade separation, Clifton Hill rail duplication, Coolaroo Station, Sunbury electrification project and South Morang rail extension.

Improvements to the department’s project development processes mean there is greater assurance that major projects are appropriately justified and provide
value-for-money. However, the level of assurance is still short of that needed for projects of the scale and cost examined in this audit.

The department should strengthen the work that underpins final business cases and improve the quality of these documents so they provide adequate assurance that projects, if endorsed, are ready for implementation.

The department has significantly improved its management of project risks during delivery and this has been reflected in better performance against planned time lines and approved budgets.

However, the department is not able to demonstrate how well projects have realised their intended benefits. It also does not consistently document and apply the lessons learnt from past projects.







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