Governance structure
The Project Team should identify and confirm the appropriate governance structure for their project, Program or Precinct and describe this in the Business Case.
The overall governance structure for a project is dictated by Government. However, the Project Team must ensure that each of the governance committees outlined in the diagram below and described in the Governance roles and responsibilities section are designed appropriately and involve the required participants. These governance committees are the interface between Cabinet and Ministers and the Project Team.
The diagram below shows an overview of an indicative governance structure that the Project Team should establish for a project of each Tier and the relationships between the governance entities and project management groups. These governance entities are explained further in Table 1 below.
Project governance should be adapted and scaled to address the unique requirements and complexity of each project (or Program or Precinct). The Project Team may request an exception to the governance committees required for their project’s Tier on a case-by-case basis after discussions with iCBR, FABG and ICA.
Indicative relationships and elements of a governance structure
The table below provides an overview of the types of governance entities and the applicable Tiers.
Each of these governance committees is described in further detail in the Governance roles and responsibilities section.
Governance entity | Description | Applicable Tier |
|---|---|---|
Cabinet | Cabinet is the ultimate decision-making body for projects under the Capital Framework | All Tiers |
Project Board | Provides advice to Government and the Project Director on the project. Established by iCBR | Designated Major Projects (all likely to be Tier 1 projects) |
Executive Steering Committee (ESC) | Determines the strategic direction of the project, oversees the operation of the Project Team and makes recommendations to Cabinet | All Tier 1 projects and large Tier 2 projects, other than those designated as Major Projects, and all Programs and Precincts |
Project Review Committee (PRC), Project Control Group (PCG) and/or Risk and Change Management Committee (RCMC) | Reviews and approves or endorses in-scope changes in the project, changes in risk categorisation and risk expenditure within the project’s contingency allowance | All Tiers to varying levels.
|
Governance and stakeholder management
Stakeholders are integral to a project’s success and should be consulted throughout a project’s development, even if they are not directly responsible for a project. Stakeholders may also have a role in a project’s decision-making processes in Stage 0 – Plan, Stage 1 – Develop and Stage 2 – Prove of the Infrastructure Investment Lifecycle. Stakeholders may also provide input into later stages through the procurement, delivery and operations of a project.
Stakeholders may include (but are not limited to):
- Project users
- Other Agencies with an interest in the project
- Community councils, residents’ associations and individual local residents
- Australian Government Departments or Agencies (e.g. National Capital Authority)
- Other State, Territory or local governments
- Businesses, employees and industry stakeholders
- Regulatory and approval authorities
- Special interest groups
- Indigenous communities
- Workers and staff.
The Project Team should carefully and clearly identify the key stakeholder groups for the project. For more information, refer to the Stakeholder Engagement Plan Guidelines. The Project Team should consider whether and how the stakeholders they have identified should be involved in the project’s governance arrangements and structures.
Footnotes: