Planning, Delivery and Benefits Realisation of Major Asset Investment: The Gateway Review Process

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Tabled: 8 May 2013

Budgeted expenditure on government capital projects for 2012–13 was $8.5 billion. The community expects that this investment is well managed to deliver assets that are needed, on time and on budget.

The Gateway Review Process (GRP) was introduced in 2003 to improve project selection, management and delivery. The GRP involves short, intensive, independent reviews at six critical points or 'Gates' in the project life cycle. The GRP is a valuable concept capable of assisting better performance in project delivery and has been mandatory for all high-risk projects since 2003.

However, the implementation of the GRP in Victoria reflects a number of missed opportunities. The audit identified 62 projects valued at $4.3 billion that were not included in the GRP between 2005 and 2012. The GRP was largely applied on an opt in decision by agencies and not all high-risk projects were subject to review. As a result, the fundamental objective for the GRP to improve the management and delivery of significant projects has not been fully met. The Department of Treasury and Finance (DTF) has demonstrated a more rigorous approach to project identification since late 2010 under the government’s ‘High Value High Risk’ process, although shortcomings remain.

Further missed opportunities resulted from projects commencing the GRP, only to drop out after completing a few Gates, meaning that the benefits from applying the GRP have not been fully realised. DTF has also missed opportunities to use the GRP to build public sector project management and review capability.

In addition, DTF has not measured the impact of the GRP on projects. As a result, it cannot make an informed assessment of the overall contribution of the GRP to improving project delivery by agencies.

 

 

 

 

 

 

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Last updated on 23/07/2013