Definition

Failure to adequately specify the asset or the service to be performed so that the service does not correctly match the need and demands of users.

Reason for overall assessment of this risk category in the eight case study projects:

Procurement of these projects: Significant risks to value for money.

Effective specification of the required service is critical to successful project delivery. Issues were identified in all of the case study projects we examined. There was a lack of data, particularly on existing services or the condition of assets being transferred to the contractor. One project did not reach contract letting following delays caused in part by a lack of information on the service to be delivered. Our case studies also identified examples where the asset was not capable of providing the full service required, or where the actual level of usage has been different than that expected when the project was developed.

Management of these contracts: Some risks to value for money.

The Department's analysis of in-service projects shows that most projects, once procured, are receiving the service they require from the contractor. Our evidence suggests that, nevertheless, on some existing contracts action may be needed where service delivery problems arise from deficiencies in the contractual specification.

NOTE

1  This project did not proceed to contract and is not part of the current Department portfolio.