2.7 The commercial experience of external consultants can often add considerable value to projects. But there have been numerous examples of poor commissioning and management of advisers.8 For example, the PAC report on the procurement of the National Roads Telecommunications Services9 (NTRS) found that the Highways Agency spent £15.5 million on advisers, five times its original budget. This occurred partly because NRTS underestimated the degree of effort required to deliver the complex contract, but also because they had only two full time staff working on the project, and did not sufficiently incentivise the advisers to deliver to budget.
2.8 Nine out of 16 commercial directors said their department lacked the required skills in managing advisers. Interviews with both the private sector and advisers themselves also confirmed this as an area of weakness.
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8 The cancellation of Bicester Accommodation Centre, NAO (HC 19, 2007-8); Central government's use of consultants, NAO (HC 128, 2006-7). See Appendix 2 for further examples, www.nao.org.uk/commercialskills09_examples.
9 The Procurement of the National Roads Telecommunications Services, PAC (HC 558, 2007-08).