3.18 The Government will implement the Major Projects Authority (MPA) Integrated Assurance and Approvals Process (IAAP).1 Mandatory Starting Gate reviews will test that all major projects and programmes are established with clear lines of accountability and that decisions vest through individuals or bodies capable of discharging their function as a 'single controlling mind' with appropriate delegated authority - ensuring also that they are suitably incentivised to optimise cost and programme outcomes.
3.19 Infrastructure UK will develop in conjunction with the MPA checklists of key features of success for major infrastructure projects and where appropriate 'templates' to complement the now mandatory Starting Gate reviews. These will focus in particular on:
• guidance and template agreements for use between public sector stakeholders on major infrastructure projects and programmes. These will be based on the models used for the Olympics, Crossrail and other complex infrastructure projects and will be piloted on the High Speed 2 project (September 2011); and
• standard principles for the structuring and management of contingency and risk and a revised framework for embedding cost and risk control into a range of different project and programme scenarios. This will be developed in collaboration with the High Speed 2 project and London Underground (December 2011).
3.20 Infrastructure UK will undertake by September 2011 an initial review of the appropriateness of current guidance and practice for the application of optimism bias in budgeting for publicly procured projects which will scope out future actions for consideration. This will also include consideration of alternative portfolio assessment and management of contingency and cost risk across programmes and projects.
3.21 Infrastructure UK will also work with Department for Transport's £6 million Highways Maintenance Efficiency Programme in identifying specific geographically based pilot opportunities to improve the governance and interface between local highways projects and other infrastructure investments. The Department for Transport will report in spring 2011 on specific pathfinders to be taken forward, in collaboration with this programme, that may also consider cross sector models consistent with the localism agenda, for example, through integration with the 'funding for outcomes' approach for flood defence.2
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1 The Major Projects Authority (MPA) is responsible for defining and operating the assurance framework for major central government projects. It is sponsored by the Efficiency and Reform Group in the Cabinet Office and HM Treasury.
2 Future funding for flood and coastal erosion risk management, DEFRA November 2010