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August 2013 Newsletter - Detail

Project Governance Reforms – A National Priority

Infrastructure Australia has released its June 2013 National Infrastructure Plan that outlines Infrastructure Australia’s view of the major infrastructure reforms that are needed to lay the foundations for a more productive Australia over the next 50 years.

Caravel’s recent survey in conjunction with Melbourne Business School has corroborated the work done by McKinsey Global Institute in identifying project governance as a major contributor to ineffective delivery of infrastructure. McKinsey1 estimates that best practice across the resources sector alone would translate to 0.6 to 2.3 per cent of additional GDP. This correlates with our estimate of 0.7 to 2.3 per cent of GDP that could be saved through improving the overall governance effectiveness. Whilst our approach differs from McKinsey’s, the net gains are significant.

Caravel’s report titled “The Effectiveness of Project Governance in Australia” can be found on the Infrastructure Australia website for those interested in the overall survey results.

The National Infrastructure Plan is an essential read for anyone involved in delivering infrastructure projects.

Both documents can be found at:

1 McKinsey Global Institute 2012, Beyond the Boom: Australia’s Productivity Imperative.


Project Governance Survey – Some Key Findings

The survey results continue to be analysed however there have been some key findings that we would like to share with you.

The following results suggest that we have a significant way to go to improve our governance delivery: Newsletter Graph

Overall, we are operating at an average of 24% relative to the required governance operating position. This implies we have a significant opportunity for improvement.

For further information on how to improve project governance within your organisation or to get further information, please do not hesitate to contact
David Rushton ( or
Paul Myers (
in our Sydney office on +61-2-94998454.

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