General weaknesses in commercial skills

2.3  The OGC's PCRs found general weaknesses in commercial skills across all central government departments, although with some degree of variation. Similarly, the NAO and the PAC have regularly reported that a lack of commercial capability and capacity in project teams has put at risk value for money on complex government projects. We are publishing separately on the NAO website a summary of references by the NAO and the PAC on commercial skills issues (Appendix 2: www.nao.org.uk/commercialskills09_examples). We have used some of these examples to illustrate the way that a shortage of commercial skills can impact on the value for money of a complex project. In many cases, departments have subsequently taken steps to address the weaknesses identified by the NAO, the PAC or in their PCRs.

2.4  We have used a number of methods to gather further evidence on the current extent to which commercial capability and capacity impact on the value for money of complex government projects. These include a survey of all 16 departmental commercial directors (or equivalents) and interviews with advisors and private sector partners (Appendix 1).