6.1 The effective implementation of project governance relies on the stakeholders, project team members and the representatives involved in the arrangements all having a clear understanding of what is required of them. This applies to both purely internal groups such as project boards, and also to joint boards comprising representation from both public sector body and, for example, the contractor during the operational phase, or the preferred bidder's shareholders.
6.2 The following points illustrate the areas which should be considered and where clarity is needed before establishing a project governance structure. If these areas are not clear then it is unlikely that there can be effective project governance:
• Identification of the stakeholders and their roles (e.g. stated through terms of reference) for the relevant phase of the project;
• A statement of requirement which sets down the boundaries (e.g. time, cost and performance), project constraints and dependencies, and the interfaces with other projects;
• Responsibility, authority, and accountability for the project - delegations must be clear, formally given and managed. The aims and terms of reference for each person or body engaged in the project governance structure should be defined and periodically reviewed;
• The formal reporting structure and feedback mechanisms;
• A project management structure and procedures that are fit for purpose(ensuring a shared understanding by all and an ability to carry out the roles set down);
• The support to be given to the project leader. The project leader should feel able to raise matters without fear so that they can gain the support which they consider necessary to deliver the project. This may, for example, be about resources (skills in the team, money), business continuity in a crisis, contingency and succession planning, or expert advice on best practice;
• How independent reviews will be instigated and how the terms of reference will be set, and the process for validation or challenge of the review findings; and
• The ways in which post project evaluations are to be carried out, e.g. benefits tracking and realisation assurance, lessons to be learnt, etc.
6.3 Getting the right level of project governance and understanding of how it will work is inevitably time consuming. There is a natural tendency not to give this work the priority it should have, at an early enough stage. It is also common for some elements of the project governance arrangement to be put in place quickly to meet specifically identified problems or shortfalls, without thinking through the implications for other aspects; this can often lead to haphazard and incoherent project governance structures.
6.4 It should be clear who has the responsibility to ensure that the required work highlighted above is done at the right time and that the project governance arrangements, including the terms of reference for individuals and boards, are kept under review. It is recommended that the project owner or Senior Responsible Owner has this responsibility.